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Average Neighborhood Income

Jamie collects the following income data (in thousands of dollars) for some of his street neighbors:
19, 21, 22, 17, 23, 19, 22, 24, 18, 21, 26, 20, 23, 23, 20, 21, 25, 20
Given that he cannot reach all his neighbors, he wants to estimate what is the average income of the whole neighborhood using just the data that he collect. He wants to make a statement like this: "With 95% confidence, I can say that the average income for my neighborhood is between __ and __"

Solution Preview

This is a confidence interval question.
<br>First we calculate the sample mean to be M = 21.333
<br>(Please refer to the attached EXCEL file for calculation)
<br>and ...

Solution Summary

Jamie collects the following income data (in thousands of dollars) for some of his street neighbors:
19, 21, 22, 17, 23, 19, 22, 24, 18, 21, 26, 20, 23, 23, 20, 21, 25, 20
Given that he cannot reach all his neighbors, he wants to estimate what is the average income of the whole neighborhood using just the data that he collect. He wants to make a statement like this: "With 95% confidence, I can say that the average income for my neighborhood is between __ and __"

$2.19