4. You have collected weekly earnings and age data from a sub-sample of 1,744 individuals using...

70.2K

Verified Solution

Question

Statistics

4. You have collected weekly earnings and age data froma sub-sample of 1,744 individuals using the Current PopulationSurvey in a given year.
(a) Given the overall mean of $434.49 and a standarddeviation of $294.67, construct a 99% confidence interval foraverage earnings in the entire population. State the meaning ofthis interval in words, rather than just in numbers. If youconstructed a 90% confidence interval instead, would it be smalleror larger? What is the intuition?
(b) When dividing your sample into people 45 years andolder, and younger than 45, the information shown in the table isfound.
Age Category
Average Earnings
Standard Deviation
N
Age â‰¥ 45
$468.87
$308.64
507
Age < 45
$412.20
$276.63
1237
Test whether or not the difference in average earningsis statistically significant. Given your knowledge of age-earningprofiles, does this result make sense?

Answer & Explanation Solved by verified expert

4.4 Ratings (833 Votes)

aThe confidence interval for mean weekly earnings isBased on the sample at hand the best guess for the populationmean is 43449However because of random sampling error this guess is likelyto be wrong Instead the intervalestimate for the average earnings lies See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

Age Category	Average Earnings	Standard Deviation	N
Age â‰¥ 45	$468.87	$308.64	507
Age < 45	$412.20	$276.63	1237