In: Statistics and Probability
Let x be a normal distribution with sigma equals 8 . A random sample size of 16 has sample mean 50.
a) Construct the 90% confidence interval for the population mean mu.
b)interpret the confidence interval computed in an above.
Solution :
Given that,
Point estimate = sample mean =
= 50
Population standard deviation =
=8
Sample size = n = 16
At 90% confidence level
= 1-0.90% =1-0.90 =0.10
/2
=0.10/ 2= 0.05
Z/2
= Z0.05 = 1.645
Z/2
= 1.645
Margin of error = E = Z/2
* (
/n)
= 1.645 * (8 / 16 )
= 3.29
At 90 % confidence interval estimate of the population mean is,
- E <
<
+ E
50 - 3.29 <
< 50+ 3.29
46.71 <
< 53.29
( 46.71 ,53.29 )
The 90% confidence interval for the population mean mu IS =( 46.71 ,53.29 )