What does a confidence interval around an estimated mean express?
Correct Answer
B) A range likely to contain the true mean value
Why this is correct: A confidence interval provides a range where the true population mean is likely to fall, based on sample data and a chosen confidence level (e.g., 95%). Why the other choices are wrong: 'The range within which every sale price falls' describes the data spread, not a confidence interval. 'The probability that the sample was unbiased' is incorrect; confidence intervals don't measure bias. 'The share of buyers who agree with the figure' is unrelated to statistical confidence. Exam tip: Confidence interval = range for the true mean; standard deviation = spread of individual data points.
Why This Is the Correct Answer
Why this is correct: A confidence interval provides a range where the true population mean is likely to fall, based on sample data and a chosen confidence level (e.g., 95%). Why the other choices are wrong: 'The range within which every sale price falls' describes the data spread, not a confidence interval. 'The probability that the sample was unbiased' is incorrect; confidence intervals don't measure bias. 'The share of buyers who agree with the figure' is unrelated to statistical confidence. Exam tip: Confidence interval = range for the true mean; standard deviation = spread of individual data points.
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