A Random Sample of 87 Airline Pilots Had an Average

question 18

Short Answer

A random sample of 87 airline pilots had an average yearly income of $99,400 with a standard deviation of $12,000.
a.If we want to determine a 95% confidence interval for the average yearly income, what is the value of t?
b.Develop a 95% confidence interval for the average yearly income of all pilots.

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Definitions:

Independent Appraisal

An evaluation conducted by a neutral third-party to determine the value of a property, business, or other asset.

Capital Account Balances

The amounts recorded in the equity section of a company’s balance sheet, representing the net worth contributed by owners or shareholders.

Net Income

The total profit of a company after all expenses and taxes have been subtracted from total revenue.

Cash Investment

The act of putting money into financial schemes, shares, property, or a commercial venture with the expectation of achieving a profit, primarily in liquid assets.