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Problem

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question

In a high school of 1650 students, 132 have personal investments in the stock market. To estimate the total stock investment by students in this school, two plans are proposed. Plan I would sample 30 students at random, find a confidence interval estimate of their average investment, and then multiply both ends of this interval by 1650 to get an interval estimate of the total investment. Plan II would sample 30 students at random from among the 132 who have investments in the market, find a confidence interval estimate of their average investment, and then multiply both ends of this interval by 132 to get an interval estimate of the total investment. Which is the better plan for estimating the total stock market investment by students in this school?

choices

  1. Plan I
  2. Plan II
  3. Both plans use random samples and so will produce equivalent results.
  4. Neither plan will give an accurate estimate.

subject

high_school_statistics

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