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Psychology and Human Behavior
According to a recent survey, approximately one of every five people hides money from their spouse. Women are slightly more likely to hide money than men, but when men stash cash, they hide more of it. The report claims that the mean amount hidden is $10,000.50 Suppose a random sample of 17 people who hide money from their spouse was obtained. The mean amount hidden was = 10,460 and the standard deviation was σ = 325. Assume the distribution of hidden cash is normal.
a. Find a 99% confidence interval for the mean amount of hidden cash.
b. Suppose divorce lawyers always assume a spouse has hidden cash of approximately $10,000. Is there any evidence to suggest that the mean amount of stashed cash is more than $10,000?
c. Find a 99% confidence interval for the variance in the amount of hidden cash.
d. A large variance in the amount of hidden cash means divorce lawyers need to hire more forensic accountants. Is there any evidence to suggest that the variance in hidden cash is greater than $55,000?
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