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Chapter 8: Q 14. (page 507)

More income The 2015American Community Survey estimated the median household income for each state. According to ACS, the 90%confidence interval for the 2015

median household income in New Jersey is \(72,222卤\)610.

a. Interpret the confidence interval.

b. Interpret the confidence level.

Short Answer

Expert verified

a. Confidence Interval is ($71612,$72832).

b. It is expected that 90%of all samples have 90%confidence interval which has true population parameter.

Step by step solution

01

Given Information

90% confidence interval is given for household income is$72222卤$610

02

Interpreting Confidence Interval

It is calculated as $72222卤$610

=($71612,72832)

It implies that income in New Jersey lies between$71612and$72832

03

Interpreting Confidence Level

  • 90%confidence interval shows population median household income.
  • Hence, about 90%of samples have 90%confidence interval having true population parameter.

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