In testing the difference between two population means using two independent samples, we use the pooled variance in estimating the standard error of the sampling distribution of the sample mean difference if the populations are normal with equal variances.
A $30,000 loan bearing interest at 9% compounded monthly was repaid, after a period of deferral, by monthly payments of $425.10 for 10 years. What was the time interval between the date of the loan and the first payment?
In practice,we frequently use a continuous distribution to approximate a discrete one when the number of values the variable can assume is countable but large.