managerial statistic:

An accountant takes a simple random sample of 100 people to estimate the average salary in a large population of workers. She computes a 95% confidence interval and gets $85,000 and $95,000.

a True of False and explain: We can estimate that approximately 95% of the people in the population earn in the range $85,000 to $95,000.

b True of False and explain: We are 95% confident that a random person in the population earns in the range $85,000 to $95,000.

c True of False and explain: We are 95% confiden that the average person in the population earns in the range $85,000 to $95,000.

d Based on this confidence interval, what is your best guess for the standard deviation of the salaries? Pick the best of the following choices and explains: $2,500, $5,000, $25,000, $50,000.

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