Before entering into wage negotiations the workers, Ask an Expert

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Before entering into wage negotiations, the workers' representative of the newly- formed farm workers trade union wanted to know the average wage of its union members. The average wage of a random sample of 50 members was found to be R2 420 per month with a sample standard deviation of R160 per month. Assume wages are normally distributed.

(a) What is the 90% confidence interval estimate for the true mean monthly wages paid to farm workers?

(b) What is the 99% confidence interval estimate for the true mean monthly wages paid to farm workers?

(d) Compute the confidence intervals in (a) and (b) using Excel's TINV formula.

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