SOLUTION: A magazine reported that the mean annual household income of its readers is $120,000. Assume the estimate of the mean annual household income is based on a sample of 80 households

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Question 768673: A magazine reported that the mean annual household income of its readers is $120,000. Assume the estimate of the mean annual household income is based on a sample of 80 households and, based on past studies, the population standard deviation is known to be $25,000. Develop a 98% confidence interval estimate of the population mean. Interpret the interval.
Answer by oscargut(2103) About Me  (Show Source):
You can put this solution on YOUR website!
To find the CI use:
Lower point = 120,000 - z(0.01)25,000/sqrt(80)
Upper point = 120,000 + z(0.01)25,000/sqrt(80)
You can ask me more at: mthman@gmail.com
Thanks