In a random sample of 49 audited estate tax returns, it was determined that the

Question

In a random sample of 49 audited estate tax returns, it was determined that the mean amount of additional tax owed was $3439 with a standard deviation of $2525. Construct and interpret a 90% confidence interval for the mean additional amount of tax owed for estate tax returns. The lower bound is $2834. The upper bound is $4044. Interpret a 90% confidence interval for the mean additional amount of tax owed for estate tax returns. Choose the correct answer below. A. One can be 90% confident that the mean additional tax owed is between the lower and upper bounds. B. One can be 90% confident that the mean additional tax owed is less than the lower bound. C. One can be 90% confident that the mean additional tax owed is greater than the upper bound.

Explanation / Answer

We always define interval such that the population parameter will lie between the upper and lower bound with some confidence. Hence,

Option A is correct.

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