In: Statistics and Probability
Dalize kept careful records of the fuel efficiency of her car.
After filling the car tank 20 times, she
found that a tank covered 600km on average with a sample standard
deviation of R50 km.
Create a 95% confidence interval for the average distance covered
on one tank.
Solution :
Given that,
Point estimate = sample mean = = 600
sample standard deviation = s = 50
sample size = n = 20
Degrees of freedom = df = n - 1 = 20 - 1 = 19
At 95% confidence level the t is ,
= 1 - 95% = 1 - 0.95 = 0.05
/ 2 = 0.05 / 2 = 0.025
t /2,df = t0.025,19 = 2.093
Margin of error = E = t/2,df * (s /n)
= 2.093 * (50 / 20)
= 23.4
The 95% confidence interval estimate of the population mean is,
- E < < + E
600 - 23.4 < < 600 + 23.4
576.6 < < 623.4
(576.6 , 623.4)