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Monthly rent was determined for each apartment in a random sample of 100 apartments. The sample mean was$820 and the sample standard deviation was $25. An approximate 95 percent confidence interval for the truemean monthly rent for the population of apartments from which this sample was selected is ($815, $825). Whichof the following statements is a correct interpretation of the 95 percent confidence level?(A) In this population, about 95 percent of all rental prices are between $815 and $825.(B) In this sample, about 95 percent of the 100 rental prices are between $815 and $825.(C) In repeated sampling, the method produces intervals that include the population mean approximately95 percent of the time.(D) In repeated sampling, the method produces intervals that include the sample mean approximately 95 percentof the time.(E) There is a probability of 0.95 that the true mean is between $815 and $825.

Question

Monthly rent was determined for each apartment in a random sample of 100 apartments. The sample mean was820andthesamplestandarddeviationwas820 and the sample standard deviation was 25. An approximate 95 percent confidence interval for the truemean monthly rent for the population of apartments from which this sample was selected is (815,815, 825). Whichof the following statements is a correct interpretation of the 95 percent confidence level?(A) In this population, about 95 percent of all rental prices are between 815and815 and 825.(B) In this sample, about 95 percent of the 100 rental prices are between 815and815 and 825.(C) In repeated sampling, the method produces intervals that include the population mean approximately95 percent of the time.(D) In repeated sampling, the method produces intervals that include the sample mean approximately 95 percentof the time.(E) There is a probability of 0.95 that the true mean is between 815and815 and 825.

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Solution

The correct interpretation of the 95 percent confidence level is (C) In repeated sampling, the method produces intervals that include the population mean approximately 95 percent of the time.

This is because a confidence interval is an estimate of the range in which the population parameter is likely to fall, based on a certain level of confidence. In this case, if we were to take multiple samples and calculate the 95% confidence interval for each, we would expect the true population mean to fall within these intervals approximately 95% of the time.

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