Question

A large home improvement store is considering expanding its selection of moving products, such as cardboard boxes and packing tape. The store constructs a 90% confidence interval to estimate the proportion of all customers who have moved houses at least once in the last five years. In the random sample of 620 customers, 201 (32.4%) replied that they had moved at least once in the last five years. The sample yielded the 90% confidence interval (0.293, 0.355) for the proportion of all customers who have moved in the past five years. What is the correct interpretation of this confidence interval

Answer 1

Answer:

The store can be 90% confident that the interval from 0.293 to 0.355 captures the proportion of all customers of this store who have moved in the past 5 years.

Step-by-step explanation:

The confidence interval provides a range of values (lower and upper bound) based on a certain confidence level at which the true proportion or mean value of a given sample mean or proportion exists. In the scenario above, the confidence level is 90% and the confidence interval is 0.293 to 0.355. Hence, we can be 90% confident that the true proportion of all customers of the store who have moved within the last five years exists within this interval.