Question

Look at the 95% confidence interval and say whether the following statement is true or false. ""This interval describes the price of 95% of the rents of all the unfurnished one-bedroom apartments in the Boston area."" Be sure to explain your answer.

Answer 1

Answer:

False

Step-by-step explanation:

Confidence intervals provide a range for a population parameter at a given significance level. The parameter can be mean, standard deviation etc.

In this example population is the prices of the rents of all the unfurnished one-bedroom apartments in the Boston area

significance level is 95%. Thus, the chance being the true population parameter in the given interval is 95%.

But, "This interval describes the price of 95% of the rents of all the unfurnished one-bedroom apartments in the Boston area." statement is false because the population parameter is missing. Confidence interval may describe population mean for example but it does not describe the whole population.