Suppose a 95 confidence interval estimate for the average in

Suppose a 95% confidence interval estimate for the average income of MBA graduates is $70,000 ? ? ? $90,000. What is the point estimate for the average income of MBA graduates?

Solution

95% confidence interval = (70,000 < mean < 90,000)

Sample mean + Margin of Error = 90,000

Sample mean - Margin of Error = 70,000

Add both the above equations

2 * Sample Mean = 160,000

Sample Mean = 80,000

point estimate for the average income of MBA graduates = Sample Mean = 80,000