Question

A company is interested in estimating the costs of lunch in their cafeteria. After surveying​ employees, the staff calculated that a​ 95% confidence interval for the mean amount of money spent for lunch over a period of six months is ​($720​, ​$900​). Now the organization is trying to write its report and considering the following interpretations. Comment on each. Complete parts​ (a) through​ (e) below. ​(a) 95% of all employees pay between ​$720 and ​$900 for lunch. Is this interpretation​ correct?

Answer 1

Answer: NO.

Step-by-step explanation:

We know that , the 95% confidence interval indicates that the researcher can be 95% sure that the true value of population mean falls in it.

Given : A company is interested in estimating the costs of lunch in their cafeteria.

After surveying​ employees, the staff calculated that a​ 95% confidence interval for the mean amount of money spent for lunch over a period of six months is ​($720​, ​$900​).

Then, the correct interpretation would be : The company can be 95% sure that the true value of population mean falls in it.