In: Statistics and Probability
A random sample of 28 people employed by the Florida state authority established they earned an average wage (including benefits) of $59.00 per hour. The sample standard deviation was $5.84 per hour. (Use t Distribution Table.) |
a. | What is the best estimate of the population mean? |
Estimated population mean | $ |
b. |
Develop a 90% confidence interval for the population mean wage (including benefits) for these employees. (Round your answers to 2 decimal places.) |
Confidence interval for the population mean wage is between and . |
c. |
How large a sample is needed to assess the population mean with an allowable error of $1.00 at 90% confidence? (Round up your answer to the next whole number.) |
Sample size |
Solution :
Given that,
= 59.00
s = 5.84
n = 28
a) The best estimate of the population mean =59.00
Degrees of freedom = df = n - 1 = 28 - 1 = 27
b) At 90% confidence level the t is ,
= 1 - 90% = 1 - 0.90 = 0.10
/ 2 = 0.10 / 2 = 0.05
t /2,df = t0.05,27 = 1.70
Margin of error = E = t/2,df * (s /n)
= 1.70 * (5.84 / 28)
= 1.88
Margin of error = 1.88
The 90% confidence interval estimate of the population mean is,
- E < < + E
59- 1.88 < < 59 + 1.88
57.12 < < 60.88
(57.12, 60.88)
C) E =1
At 90% confidence level the t is ,
= 1 - 90% = 1 - 0.90 = 0.10
/ 2 = 0.10 / 2 = 0.05
t /2 = t0.05, = 1.645
Sample size = n = (Z/2 * ) / E)2
= (1.645 * 5.84) / 1)2
= 92.29 = 92
Sample size = 92.