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, 192 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 ( 0.6294 , 0.7977 ). What is the correct interpretation of this confidence interval?

Question 5 options:

	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 0.6294 and 0.7977.
	2) We are 99% confident that of the 192 respondents, between 0.6294 and 0.7977 of them made more than they lost.
	3) We cannot determine the proper interpretation of this interval.
	4) We are certain that 99% of subscribers made between 0.6294 and 0.7977.
	5) We are 99% confident that the proportion of all Money magazine subscribers that made money in the previous year from their investments is between 0.6294 and 0.7977.

Answer 1

Solution :

Given confidence interval is :

0.6294 < p < 0.7977

The correct interpretation of this confidence interval is :

We are 99% confident that the proportion of all Money magazine subscribers sampled that made money in the

Option 1)