An economist is interested in studying the incomes of consumers in a particular country.The
Population standard deviation is known to be $1,000.A random sample of 50 individuals
Resulted in a mean income of $15,000.What is the upper end point in a 99% confidence
Interval for the average income?
A) $15,052
B) $15,141
C) $15,330
D) $15,364

Question

Quizplus · Accepted Answer

The upper endpoint of a 99% confidence interval is calculated using the formula: mean + (Z * (σ/√n)). Here, Z for 99% confidence is approximately 2.576, σ is $1,000, and n is 50. Calculating gives $15,000 + (2.576 * (1000/√50)) = $15,364.

An Economist Is Interested in Studying the Incomes of Consumers