Confidence interval estimate of the average salary


Annual salaries, in thousands of dollars, for a random sample of chemists at the Dull Chemical Company are 38, 43, 41, 49, 52. Assume that chemists' salaries are normally distributed.

(a) Find a 95% confidence interval estimate of the average salary for all chemists at the Dull Chemical Company.

(b) A campus recruiter for Dull Chemical states to prospective employees that the mean annual salary for chemists at Dull is μ = $47,000. Is the answer to Part (a) consistent with this statement, OR do you have strong evidence to deny this statement? Explain the reasoning behind your answer!

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Basic Statistics: Confidence interval estimate of the average salary
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