2 June, 01:25

# 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.

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1. 2 June, 01:48
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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.