Answer:
Step-by-step explanation:
Hello!
The variable of the study is
X: taxi fare from Logan Airport to downtown Boston.
This variable has a normal distribution
Suppose a sample of 7 taxi fares was taken and a 95%CI for the population mean was calculated obtaining:
$[20.51; 24.21]
The confidence level is a way of estimating the value of a population parameter of interest just like the point estimation. The difference is that instead of obtaining one value that may or may not be close to the true value of the parameter you obtain the range of values the parameter may take with a certain level of confidence.
The confidence level of an interval is the probability under which it is built. This probability indicates that if they build 100 confidence intervals, we expect 95 to contain the value of the parameter of interest we are trying to estimate.
As mentioned before in this case the parameter of interest is:
μ: population mean of taxi fares from Logan Airport to downtown Boston
And the 95% CI can be interpreted as:
We are 95% confident that the average taxi fare between Logan Airport and downtown Boston will fall between $20.51 and $24.21.
I hope this helps!
