A recruiter estimates that if you are hired to work for her company and you put in a full week at the commissioned sales representative position she is offering, you will make “$525 plus or minus $250, 80% of the time.” She adds, “It all depends on you!” If the $525 is the mean, state what the following figures stand for in terms of the confidence interval around this mean.
- What does the “$525 plus or minus $250” mean? *Your Weekly Salary will be between $275 and $775.
- What does the “80% of the time” mean? *You can have 80% confidence that your weekly salary will be between $275 and $775.
Please let me know if I have the correct answers.
Agree.
You have the correct answers. Well done!
The statement "525 plus or minus 250" means that the estimated mean weekly salary is $525, and it can vary within a range of plus or minus $250. In other words, your weekly salary can be as low as $525 - $250 = $275 or as high as $525 + $250 = $775.
The phrase "80% of the time" indicates the level of confidence associated with this estimate. It means that there is an 80% probability or confidence that your weekly salary will fall within the range of $275 to $775.