Question

The lower end of a 95% interval estimated of the mean annual salary of persons with an MBA degree five years after graduation is reported to be $80,100. based on a sample of 300 persons. The sample standard deviation is $22,092.5. What is the point esti mate of the salary? (Note: The z-score was used in building the The interval is

a $81,200
b $81,500
c $82,600
d $83,100

In the previous question, what is the upper end of the interval?
a $85,600
b $85,100
c $84,000
d $83,700

Answer 1

The point estimate of the salary is approximately $82,601.82.

Step-by-step explanation:

The point estimate of the mean annual salary of persons with an MBA degree five years after graduation can be calculated using the lower end of the 95% confidence interval and the sample size. The formula for calculating the point estimate is:

Point Estimate = lower end of interval + (Z-score * standard deviation / square root of sample size)

Substituting the given values:

Point Estimate = $80,100 + (1.96 * $22,092.5 / sqrt(300))

Solving the equation:

Point Estimate ≈ $82,601.82