In: Statistics and Probability
n a random sample of 23 people, the mean commute time to work was 32.6 minutes and the standard deviation was 7.3 minutes. Assume the population is normally distributed and use a t-distribution to construct a 90% confidence interval for the population mean mu. What is the margin of error of mu? Interpret the results. The confidence interval for the population mean mu is left parenthesis nothing comma nothing right parenthesis.
Solution :
The 90% confidence interval for mean is given as follows :
Where, x̅ is sample means, s is sample standard deviation, n is sample size and t(0.10/2, n - 1) is critical t-value to to construct 90% confidence interval.
Note : The term after the plus minus sign is known as margin of error.
We have, x̅ = 32.6 minutes, s = 7.3 minutes, n = 23
Using t-table we get, t(0.10/2, 23 - 1) = 1.717
Hence, 90% confidence interval for population mean is,
The term after the plus minus sign is calculated to be 2.614.
Hence, margin of error = 2.614
The 90% confidence interval for population mean is (29.986 minutes, 35.214 minutes).
Interpretation : We are 90% confident that the true value of mean commute time to work lies between 29.986 minutes and 35.214 minutes.