You are interested in getting an investment portfolio started with any extra mon

Question

You are interested in getting an investment portfolio started with any extra money you make from your part time job while also going to school. While flipping through the latest edition of Money magazine, you read an article that of a survey of magazine subscribers, 181 were randomly selected and analyzed. A 99% confidence interval was constructed for the proportion of all subscribers who made money in the previous year in their investments, which was ( 0.638 , 0.8095 ). What is the correct interpretation of this confidence interval?

Question 4 options:

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1) We are 99% confident that the proportion of all Money magazine subscribers sampled that made money in the previous year from their investments is between 0.638 and 0.8095. 2) We are 99% confident that the proportion of all Money magazine subscribers that made money in the previous year from their investments is between 0.638 and 0.8095. 3) We are 99% confident that of the 181 respondents, between 0.638 and 0.8095 of them made more than they lost. 4) We cannot determine the proper interpretation of this interval. 5) We are certain that 99% of subscribers made between 0.638 and 0.8095.

Explanation / Answer

Note that a confidence interval is for all the population, not just the sample.

Hence,

OPTION 2: We are 99% confident that the proportion of all Money magazine subscribers that made money in the previous year from their investments is between 0.638 and 0.8095. [ANSWER, OPTION 2]

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