In: Statistics and Probability
Construct a 98% confidence interval when n = 20, x = 67.5 and σ = 3.7.
Solution :
Given that,
Point estimate = sample mean =
=67.5
Population standard deviation =
= 3.7
Sample size = n =20
At 98% confidence level the z is ,
= 1 - 98% = 1 - 0.98 = 0.02
/ 2 = 0.02/ 2 = 0.01
Z/2 = Z0.01 = 2.326 ( Using z table )
Margin of error = E = Z/2
* (
/n)
= 2.326 * ( 3.7/ 20
)
= 1.92
At 98% confidence interval estimate of the population mean
is,
- E <
<
+ E
67.5 - 1.92 <
< 67.5+ 1.92
65.58 <
< 69.42
( 65.58, 69.42 )