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95% confidence interval for the population mean.
1. Private colleges and universities rely on money contributed by individuals and corporations for their operating expenses. Much of this money is put into a fund called an endowment, and the college spends only the interest earned by the fund. A recent survey of 8 private colleges in the United States revealed the following endowments (in millions of dollars): 60.2, 47.0, 235.1, 490.0, 122.6, 177.5, 95.4, and 220.0. Summary statistics yield = 180.975 and s = 143.042. Calculate a 95% confidence interval for the mean endowment of all the private colleges in the United States assuming a normal distribution for the endowments.
a) $180.975± $94.066
b) $180.975± $99.123
c) $180.975± $116.621
d) $180.975± $119.586
2. 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 width of the 90 percent confidence interval?
a) $232.60
b) $364.30
c) $465.23
d) $728.60
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