An economist is interested in studying the incomes of consumers in a particular region. The population standard deviation is known to be $1,000. A random sample of 50 individuals resulted in an average income of $15,000. What is the upper end point in a 99% confidence interval for the average income?
A) $15,052
B) $15,141
C) $15,330
D) $15,364

Question

Quizplus · Accepted Answer

The upper end point of a 99% confidence interval is calculated using the formula: sample mean + (Z * (population standard deviation / sqrt(sample size))). For a 99% confidence level, Z is approximately 2.576. Thus, the calculation is $15,000 + (2.576 * (1000 / sqrt(50))) = $15,364.

An Economist Is Interested in Studying the Incomes of Consumers