An economist, an expert in the study of sales and production of goods and servic
ID: 3241844 • Letter: A
Question
An economist, an expert in the study of sales and production of goods and services, is interested in studying the average amount of money people spend, each month, on entertainment. For example, he wants to know how much people spend, each month, going to the movies, attending a concert, etc. His assistant conducted a poll of 500 randomly selected people across the country. He found a 95% confidence interval: $72 to $198. From this confidence interval the assistant concluded that people spend an average of $200 a month on entertainment. Is this a reasonable conclusion and why?
Yes, the value $200 is very close to the value $198.Explanation / Answer
option B)
No, the value $200 is not contained in the interval, so it is not reasonable that the true population mean is this high
is correct