In: Math
A multinational firm wants to estimate the average number of hours in a month that their employees spend on social media while on the job. A random sample of 83 employees showed that they spent an average of 21.5 hours per month on social media, with a standard deviation of 2.5. Construct and interpret a 95% confidence interval for the population mean hours spent on social media per month.
Solution :
Given that,
Point estimate = sample mean =
= 21.5
sample standard deviation = s = 2.5
sample size = n = 83
Degrees of freedom = df = n - 1 = 82
At 95% confidence level the t is ,
= 1 - 95% = 1 - 0.95 = 0.05
/ 2 = 0.05 / 2 = 0.025
t
/2,df = t0.025,82 = 1.989
Margin of error = E = t/2,df
* (s /
n)
= 1.989 * (2.5 /
83)
= 0.546
The 95% confidence interval estimate of the population mean is,
- E <
<
+ E
21.5 - 0.546 <
< 21.5 + 0.546
20.954 <
< 22.046
A 95% confidence interval for the population mean hours spent on social media per month is (20.954 , 22.046)