What is the compound inequality?
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Answer:
The margin of error for constructing a 95% confidence interval on the population mean income before taxes of all consumer units in the U.S is 1406.32.
Step-by-step explanation:
We are given that according to a survey of 500, the mean income before taxes of consumer units (i.e., households) in the U.S. was $60,533 with a standard error of 717.51.
Margin of error tells us that how much our sample mean value deviates from the true population value.
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<u>Margin of error is calculated using the following formula;</u>
Margin of error =
where, = level of significance = 1 - confidence level
= 1 - 0.95 = 0.05 or 5%
Standard of Error = = 717.51
Now, the value of z at 2.5% level of significance () is given in the z table as 1.96, that means;
Margin of error =
= = 1406.32
Hence, the margin of error for constructing a 95% confidence interval on the population mean income before taxes of all consumer units in the U.S is 1406.32.