What Is the Purpose of Calculating a Confidence Interval

question 106

Multiple Choice

What is the purpose of calculating a confidence interval?

• A) To provide a range of values that has a certain large probability of containing the sample statistic of interest.
• B) To provide a range of values that, with a certain measure of confidence, contains the sample statistic of interest.
• C) To provide a range of values that, with a certain measure of confidence, contains the population parameter of interest.
• D) To provide a range of values that has a certain large probability of containing the population parameter of interest.

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Definitions:

Federal Income Tax

The annual income of individuals, corporations, trusts, and other legal organizations is subject to taxation by the IRS.

Gross Pay

It's the total amount of compensation that an employee receives before any deductions, such as taxes and retirement contributions, are made.

FICA-OASDI

The portion of the U.S. Federal Insurance Contributions Act tax that funds the Social Security retirement, disability, and survivors' benefits.

Federal Income Tax

A tax levied by the federal government on the annual income of individuals, corporations, trusts, and other legal entities.