Confidence interval for the mean salary


The economy may be headed for recession. As the manager of a bank, you would like to know the average income of the bank's credit card customers. A sample of 100 randomly selected customers yields a mean income of $61,015.56 and a standard deviation of $2000.

Q. What is the 90% confidence interval for the mean salary of your credit card customers?

Q. Which of the following conclusions can be made from the previous interval with at least 90% confidence?

I. Less than 10% of the customers of the bank have an income greater than $65,000

II. The average customer in your sample has an income of more than $61,000

III. The probability that the true population mean is between the two values you derived in the previous question is 0.90

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Basic Statistics: Confidence interval for the mean salary
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