Question

Consider a sample of 1,160 recently graduated business majors selected in an SRS. The sample mean annual starting salary was $49,898. Assume that the population standard deviation for starting salary is $12,732. Using the appropriate critical value z*, find the 99% confidence interval for the population mean for annual starting salary. In your answer, type the upper endpoint of this confidence interval.

Round your answer to the nearest dollar.

Answer 1

Solution :

Given that,

Sample size = n = 1160

Z = 2.326

Margin of error = E = Z* ( /n)

= 2.326 * (12732 / 1160)

Margin of error = E = 870

At 99% upper confidence interval estimate of the population mean is,

+ E

49898 + 870

50768

Upper endpoint: $50768