Question

Starting salaries of 130 college graduates who have taken a statistics course have a mean of $43,917 and a standard deviation of $9,456. Using 99% confidence, find both of the following:

A. The margin of error E E

B. The confidence interval for the mean μ : < μ<

Answer #1

df = n - 1= 130 - 1 = 129

t critical value at 0.01 level with 129 df = 2.614

A)

Margin of error = t * S / sqrt(n)

= 2.614 * 9456 / sqrt(130)

= **2167.91**

B)

99% Confidence interval is

- E < < + E

43917 - 2167.91 < < 43917 + 2167.91

**41749.09 <
< 46084.91**

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