In years past, the mean household expenditure for energy was $1493. An economist
ID: 3237041 • Letter: I
Question
In years past, the mean household expenditure for energy was $1493. An economist believes that expenditure for energy is different now. She takes a random sample of 35 households and produces the following output with Minitab. (Parts of the output have been removed.) What is the margin of error of the confidence interval?
One-Sample T
Test of mu = 1493 vs not = 1493
N | Mean | StDev | SE Mean | 95% CI | T
?? | 1618.0 | 321.0 | 54.3 | (1507.7, ????) | 2.30
a.106.3
b.110.3
c.212.6
d.220.6
The answer is B, please explain the process
Explanation / Answer
Margin of error = ?
The lower level of confidence is 1507.7
The mean estimate as per the table is 1618.0
So, the Margin of error is Lower level of confidence - Mean = 1618.0- 1507.7 = 110.3
Hence, the answer is b. 110.3