Question

More income The $2015$American Community Survey estimated the median household income for each state. According to ACS, the $90\%$confidence interval for the $2015$

median household income in New Jersey is $\backslash (72,222\pm \backslash )610$.

a. Interpret the confidence interval.

b. Interpret the confidence level.

Short answer

a. Confidence Interval is $(\$71612,\$72832)$.

b. It is expected that $90\%$of all samples have $90\%$confidence interval which has true population parameter.

Step-by-step solution

Given Information

$90\%$ confidence interval is given for household income is$\$72222\pm \$610$

Interpreting Confidence Interval

It is calculated as $\$72222\pm \$610$

$=(\$71612,72832)$

It implies that income in New Jersey lies between$\$71612\text{and}\$72832$

Interpreting Confidence Level

• $90\%$confidence interval shows population median household income.
• Hence, about $90\%$of samples have $90\%$confidence interval having true population parameter.