In Problem 13.6 on page 494, a prospective MBA student wanted to predict starting salary upon graduation, based on program per-year tuition. The data are stored in FTMBA. a. Construct a 95 % confidence interval estimate of the mean starting salary upon graduation of an individual program with per-year tuition cost of $ 50 , 450. b. Construct a 95 % prediction interval of the starting salary upon graduation of an individual programme with per-year tuition cost of $ 50 , 450. c. Why is the interval in (a) narrower than the interval in (b)?
In Problem 13.6 on page 494, a prospective MBA student wanted to predict starting salary upon graduation, based on program per-year tuition. The data are stored in FTMBA. a. Construct a 95 % confidence interval estimate of the mean starting salary upon graduation of an individual program with per-year tuition cost of $ 50 , 450. b. Construct a 95 % prediction interval of the starting salary upon graduation of an individual programme with per-year tuition cost of $ 50 , 450. c. Why is the interval in (a) narrower than the interval in (b)?
Solution Summary: The author explains how to calculate the confidence interval estimate of the mean starting salary on graduation of an individual program with 50,450 as per-year tuition cost.
In Problem 13.6 on page 494, a prospective MBA student wanted to predict starting salary upon graduation, based on program per-year tuition. The data are stored in FTMBA.
a. Construct a
95
%
confidence interval estimate of the mean starting salary upon graduation of an individual program with per-year tuition cost of
$
50
,
450.
b. Construct a
95
%
prediction interval of the starting salary upon graduation of an individual programme with per-year tuition cost of
$
50
,
450.
c. Why is the interval in (a) narrower than the interval in (b)?
Definition Definition Method in statistics by which an observation’s uncertainty can be quantified. The main use of interval estimating is for describing a range that is made by transforming a point estimate by determining the range of values, or interval within which the population parameter is likely to fall. This range helps in measuring its precision.
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