Question

A marketing research company is estimating the average total compensation of party clowns. Data were randomly collected from 48 party clowns and the 90% confidence interval for the mean was calculated to be ($9394, $9926). Explain what the phrase "90% confident" means.

a. 90% of the sample means from similar samples fall within the interval. In repeated sampling.
b. 90% of the intervals constructed would contain p.
c. Notes 90% of the similarly constructed intervals would contain the value of the sample mean.
d. 90% of the population values will fall within the interval.

Answer 1

"90% confidence" means there is a probabilty of 90% that the population mean (average compensation for the population of party clowns) lies within the confidence interval.

Explanation:

The confidence interval is a range of values in which, according to the level of confidence that is calculated, is likely to include a parameter of the population. In this case, this parameter is the population mean compensation of party clowns.

The level of confidence is 90%, so there is 90% of confidence (or probability) that the population mean compensation for party clowns lie within $9394 and $9926.

None of the options below is correct.