Question: Problem 2: Suppose we want to estimate the average number of cars per high income household in a location. However, we don't have a
Problem 2: Suppose we want to estimate the average number of cars per high income household in a location. However, we don't have a list of high income households. A simple random sampling of size 100 is taken and only 35 out of 100 households are classified as high income. The following table summarizes the number of cars of these 35 high income households: Number of cars 1 2 3 4 Number of households 4 17 10 4 Assume that the number of households in this city is much larger than 100. 1. Compute the estimate and its standard error. 2. Construct a 95% confidence interval for the average number of cars per high income house- hold. 3. Further assume that this location has 10,000 households. Estimate the total number of cars of all high income households. Construct a 95% confidence interval for this quantity.
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
