You are interested in getting an investment portfolio starte

You are interested in getting an investment portfolio started with any extra money you make from your part time job while also going to school. While flipping through the latest edition of Money magazine, you read an article that of a survey of magazine subscribers, 168 were randomly selected and analyzed. A 90% confidence interval was constructed for the proportion of all subscribers who made money in the previous year in their investments, which was ( 0.7796 , 0.8752 ). What is the correct interpretation of this confidence interval?

a) We cannot determine the proper interpretation of this interval.

b) We are 90% confident that the proportion of all Money magazine subscribers that made money in the previous year from their investments is between 0.7796 and 0.8752.

c) We are 90% confident that the proportion of all Money magazine subscribers sampled that made money in the previous year from their investments is between 0.7796 and 0.8752.

d) We are certain that 90% of subscribers made between 0.7796 and 0.8752.

e) We are 90% confident that of the 168 respondents, between 0.7796 and 0.8752 of them made more than they lost.

[Please provide reasoning]

Solution

b) We are 90% confident that the proportion of all Money magazine subscribers that made money in the previous year from their investments is between 0.7796 and 0.8752.