In: Economics
Suppose you draw a sample from a population with a
standard deviation of 25. You draw 50 observations and end up with
a sample mean of 100.
a) Estimate a 90% confidence interval for the population mean
b) Estimate a 95% confidence interval for the population mean
c) Estimate a 99% confidence interval for the population mean
d) What effect does increasing the confidence level have on the
resulting confidence interval?
e) Carefully interpret your confidence interval from part (a).