Chapter 8, Problem 10PT

To determine

To find: The option that correctly interprets the provided confidence interval correctly.

Answer to Problem 10PT

Option (d) is correctly interpretating the confidence interval of true median income.

Explanation of Solution

Given:

Median income = $ 57,005

Confidence level = 99%

Margin of error = ±$ 742

The confidence interval says if the many samples of same size from the same population are taken out then there is certainty that true population mean will lie between the range of two values.

Here, it could be said that obtained the result $\$57005\pm \$742$ by applying a method that is likely to cover the median income 90% of the time if it is done many times.

Hence, the correct option is (d).