In: Statistics and Probability
Assuming that the population is normally distributed, construct a 90% confidence interval for the population mean, based on the following sample size of n=7.
1, 2, 3, 4, 5 6, and 24
Change the number 24 to 7 and recalculate the confidence interval. Using these results, describe the effect of an outlier (that is, an extreme value) on the confidence interval.
(a)
From the given data, the following statistics are calculated:
n = 7
= Sample Mean = 45/7 = 6.4286
s = Sample SD = 7.9343
SE = s/
= 7.9343/ = 2.9989
df = n - 1 = 7 - 1 = 6
= 0.10
From Table, critical values of t = 1.9432
Confidence Interval:
6.4286 (1.9432 X 2.9989)
= 6.4286 5.8274
= ( 0.6012,12.2560)
So,
Confidence Interval is given by:
0.6012 < < 12.2560
(b)
Changing the number 24 to 7, we get:
From the given data, the following statistics are calculated:
n = 7
= Sample Mean = 28/7 = 4
s = Sample SD = 2.1602
SE = s/
= 2.1602/ = 0.8165
df = n - 1 = 7 - 1 = 6
= 0.10
From Table, critical values of t = 1.9432
Confidence Interval:
4 (1.9432 X 0.8165)
= 4 1.5866
= (2.4134,5.5866)
So,
Confidence Interval is given by:
2.4134 < < 5.5866
(c)
The width of the confidence level decreases if outlier is removed from the data set.