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A Berkeley supporter of the Save the Post Office movement is keen to know what the average unemployment rate is across US counties in 2013.
A Berkeley supporter of the Save the Post Office movement is keen to know what the average unemployment rate is across US counties in 2013. Unfortunately, he does not have time to look up all the information because he is too busy holding up a sign that says, "Down with Capitalist Encroachment!" So instead, he randomly chooses 36 counties and discovers that their average unemployment rate in 2013 is 12%.
- What is his best guess of the average unemployment rate across the US?
- Why? (How do you justify your choice in question 1?)
- Suppose the standard deviation of the unemployment rates across those 36 counties is 3%. Compute the 95% confidence interval for the estimate of unemployment across the US, and explain in one or two sentences what that confidence interval means.
Upper bound:
Lower bound:
Interpretation:
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