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A store owner was interested in researching annual household income ($000) of residents living near the store. A random sample of 46 households was collected
A store owner was interested in researching annual household income ($000) of residents living near the store. A random sample of 46 households was collected and had a mean annual household income of 75 (in $000) with a standard deviation of 5 (in $000). a) The store owner was interested in creating a 90% confidence interval to estimate the population mean annual household income. The store owner provided the following workings for the confidence interval: 75 +/- 1.96*(5/46) = 75 +/- 20.4 = (45.6, 104.4) in $ State THREE MISTAKES with this solution AND EXPLAIN how you would CORRECT THESE MISTAKES, but do NOT create another confidence interval. [5 marks] b) The store owner who created the confidence interval, offered the following interpretation: "There s a 99% probability, if lots of samples of size 30 was taken that the confidence interval for the sample mean weekly household income would be (45.6, 104.4)." State THREE MISTAKES with this solution AND EXPLAIN how you would CORRECT THESE MISTAKES, but do NOT create another confidence interval. [3 marks] c) The store owner collected the sample of data, by asking customers visiting their store, one morning, the customer's household income, in return for a
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