A survey of 85 homeowners finds that they spend on average $67 a month on home maintenance.
Question:
A survey of 85 homeowners finds that they spend on average $67 a month on home maintenance. At the 95% confidence level, the margin of error (E) for the mean amount spent on home maintenance by all homeowners is 54.
a. Construct the 95% confidence interval for the mean amount spent per month on home maintenance by all homeowners. Interpret your answer.
b. What would be the point estimate for the mean amount spent per month on home maintenance by all homeowners? Why do we choose to construct a confidence interval for the population parameter and not just report the point estimate as the value of the population parameter? Why do we not construct a 100% confidence interval?
A Survey of Mathematics with Applications
ISBN: 978-0134112107
10th edition
Authors: Allen R. Angel, Christine D. Abbott, Dennis Runde