Question

The American Community Survey (ACS), part of the United States Census Bureau, conducts a yearly census similar to the one taken every ten years, but with a smaller percentage of participants. The most recent survey estimates with 90% confidence that the mean household income in the U.S. falls between $69,720 and $69,922. Find the point estimate for mean U.S. household income and the error bound for mean U.S. household income.

Answer 1

Answer:

The point estimate used was of $69,821.

The error bound is of $101.

Step-by-step explanation:

A confidence interval has two bounds, a lower bound and an upper bound.

A confidence interval is symmetric, which means that the point estimate used is the mid point between these two bounds, that is, the mean of the two bounds.

The error bound is half the difference between these two values.

In this question:

90% confidence that the mean household income in the U.S. falls between $69,720 and $69,922.

Point estimate:

(69720+69922)/2 = 69821

The point estimate used was of $69,821.

Error bound:

(69922 - 69720)/2 = 101

The error bound is of $101.