Chapter 8, Problem T8.10SPT

To determine

To draw: The appropriate conclusion by selecting the correct option.

Answer to Problem T8.10SPT

The correct option is (a).

Explanation of Solution

Given:

  $\begin{array}{l}\text{Median income}=57,005\\ \text{Margin of error}\left(E\right)=742\\ \text{Confidence level = 90\%}\end{array}$

The range is provided by the confidence interval in which the population parameter is likely to fall in.

The confidence interval can be calculated as:

  $CI=57005\pm 742$

Here, it could be said that there is 90% probability that median income of the households falls between 57005±742.

Hence, the correct option is (a)