Question
A random sample of 900 homeowners in Allegheny County is taken in order to estimate the average amount of money spent by homeowners on landscaping
A random sample of 900 homeowners in Allegheny County is taken in order to estimate the average amount of money spent by homeowners on landscaping this spring. It turns out that this group spent an average of $200 with a standard deviation of $150. A 95% confidence interval for the average amount spent on landscaping by all Allegheny County homeowners is calculated to be $200 $10. Which is true about this situation?
A. The true average amount spent must be in this interval.
B. The procedure used here produces intervals that cover the true average amount spent for 95% of all samples.
C. This confidence interval wont cover the true average amount spent since a histogram of the amount spent is skewed.
D. The interval would be wider if we used an 80% confidence level instead of 95%.
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