You are interested in getting an investment portfolio started with any extra money you make from your part time job while also g
oing to school. While flipping through the latest edition of Money magazine, you read an article that of a survey of magazine subscribers, 164 were randomly selected and analyzed. A 95% confidence interval was constructed for the proportion of all subscribers who made money in the previous year in their investments, which was ( 0.6904 , 0.8218 ). What is the correct interpretation of this confidence interval
We are 95% confident that the proportion of all Money magazine subscribers that made money in the previous year from their investments is between 0.6904 and 0.8218
Step-by-step explanation:
The confidence interval gives a range of values for which a population proportion will fall based on a given level of confidence, in this case it is 95%. This interval is calculated using the sample proportion. The sample proportion in this case is based on a number of samples examined. The interval we obtain in this case (0.6904; 0.8218) is the estimated range which we expect the population proportion to fall ; with a 95% confidence.
