Question

A researcher is estimating the mean income of residents in a large city. The income variable is usually skewed to the right. She collects a random sample of 25 people. The resulting 95% confidence interval is ($26700, $35400). Which one of the following conclusions is valid? We are 95% confident that the mean income for all residents of this city is between $26700 and $35400. 95% of the residents of this city have an income between $26700 and $35400. No conclusion can be drawn.

Answer 1

Answer: We are 95% confident that the mean income for all residents of this city is between $26700 and $35400.

Step-by-step explanation:

We know that a 95% confidence interval given an interval of values that we can be 95% sure , that it contains the true mean of the population, not 95% of data lies in it.

Given : A researcher is estimating the mean income of residents in a large city. The income variable is usually skewed to the right. She collects a random sample of 25 people.

The resulting 95% confidence interval is ($26700, $35400).

Then, valid conclusion will be :  We are 95% confident that the mean income for all residents of this city is between $26700 and $35400.