In: Math
The table t-value associated with 8 degrees of freedom and used to calculate a 99% confidence interval is _______.
Select one:
a. 3.355
b. 1.860
c. 1.397
d. 2.896
Cameron Sinclair, Information Services Manager with Global Financial Service (GFS), is studying employee use of GFS email for non-business communications. He plans to use a 95% confidence interval estimate of the proportion of email messages that are non-business; he will accept a 0.05 error. Previous studies indicate that approximately 30% of employee email is not business related. Cameron should sample _______ email messages.
Select one:
a. 14
b. 323
c. 457
d. 12
Solution:
a ) Given thta,
Degrees of freedom = 8
At 99% confidence level the t is ,
= 1 - 99% = 1 - 0.99 = 0.01
/ 2 = 0.01 / 2 = 0.005
t /2,df f = t0.005,8 = 3.355
A 99% confidence interval is =3.355
Answer a ) is correct.
b ) Given that,
= 30% = 0.30
1 - = 1 - 0.30 = 0.70
margin of error = E = 0.05
At 95% confidence level the z is ,
= 1 - 95% = 1 - 0.95 = 0.05
/ 2 = 0.05 / 2 = 0.025
Z/2 = Z0.025 = 1.960
Sample size = n = ((Z / 2) / E)2 * * (1 - )
= (1.960 / 0.05)2 * 0.30 * 0.70
= 322.6944
= 323
n = sample size = 323
Answer b ) is correct.