The 2009 holiday retail season, which kicked of on November 27, 2009 (the day af

Question

The 2009 holiday retail season, which kicked of on November 27, 2009 (the day after Thanksgiving), had been marked by somewhat lower self-reported consumer spending than was seen during the comparable period in 2008. To get an estimate of consumer spending, 436 randomly sampled American adults were surveyed. Daily consumer spending for the six-day period after Thanksgiving, spanning the Black Friday weekend and Cyber Monday, averaged $84.71. A 95% condence interval based on this sample is ($80.31, $89.11). The following graph illustrates the right skewed distribution of spending habits. Determine which of the following statements are true.

(a) 95% of all spending of American adults is between $80.31 and $89.11.
(b) This confidence interval is not valid since the distribution of spending in the sample is right skewed.
(c) 95% of random samples have a sample mean between $80.31 and $89.11.
(d) We are 95% confident that the average spending of all American adults is between $80.31 and $89.11.

d only

a and d only

all are true

c and d only

d only

a and d only

all are true

c and d only

Explanation / Answer

Given that, 95% confidence interval based on this sample is ($80.31, $89.11).

Correct interpretation of this confidence interval is,

We are 95% confident that the average spending of all American adults is between $80.31 and $89.11

Answer: d) only

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