You find that the 95% confidence interval for the cost of a starting new busines

Question

You find that the 95% confidence interval for the cost of a starting new business is ($15,000, $25,000). What is the correct interpretation of this interval?

For the next business you start, the cost will be between 15,000 and $25,000.

You are 95% confident that the mean new business cost is between $15,000 and $25,000.

There is a 95% probability that the sample mean is between $15,000 and $25,000.

There is a 95% probability that the population mean is between $15,000 and $25,000.

For the next business you start, the cost will be between 15,000 and $25,000.

You are 95% confident that the mean new business cost is between $15,000 and $25,000.

Explanation / Answer

Option 4 is correct

Correct interpretation of 95% confidence interval:

There is a 95% probability that the population mean is between $15,000 and $25,000.

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