Question

Find a 99% confidence interval for the previous problem.A) ($99,271.44, $100,728.56)B) ($99,242.00, $100,758.01)C) ($99.996.46, $100,003.55)D) The salaries are not normally distributed so we cannot compute a confidence interval

Answer 1

95% confidence interval is given by

x - 2D , and x+ 2D

For 99% confidence interval is

x - 3D , and x + 3D

x = 100000

D = 2000

Then calculate

100000 - 3•2000= 94000

and

100000 + 3•2000= 106000

Now find √D = 44.72

Then interval is

100000 - 44.72 ,. And. 100000 + 44.72

99,956 lower limit and. 100472 upper limit

Then we see that theres only one interval ,

that is between thes 2 limits

ANSWER Is OPTION C) ) ($99.996.46, $100,003.55)