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Confidence interval estimation

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For taxpayers having an adjusted gross income of $1 million or more, the Internal Revenue Service reports that the average deduction for gifts to charity was $144,700. Curious to see how his state compares, a legislator surveys a simple random sample of 200 taxpayers from his state who are in this gross income category, with the data as shown in file XR09110. Using the data in this file, construct and interpret the 90% confidence interval for the mean charitable-gifts deduction for all of the state's taxpayers who are in the $1 million or more adjusted gross income category. Is $144,700 within the confidence interval? Given the answer to the preceding question, comment on whether the state's taxpayers who are in this income group might not be typical of those in the nation as a whole in terms of their tax-deductible charitable ...

Solution Summary

A step by step method for computing confidence interval and sample size for population mean.