Answer to Question 1
B
Answer to Question 2
No, this interpretation is not correct. As stated, it implies that is a random variable that can take on different values when in fact is a parameter and has a fixed value. The 95 percent confidence level indicates that of all possible confidence intervals constructed from a given size sample selected from the population, and using a z critical value associated with 95 percent confidence, 95 percent of the intervals would contain the true population mean. The particular interval that we actually have computed (20 to 40 ) will either contain or it won't.