In: Statistics and Probability
Kathy only receives surveys from 221 people despite expecting to receive 300 surveys. How will this affect the width and the margin of error of her confidence interval for a population mean? Assume that the population standard deviation is unknown and the population distribution is approximately normal.
Solution:
Consider the process of constructing the confidence interval for the population mean.
When the population standard deviation is unknown , then we use t distribution.
The margin of error is given by
E = /2,d.f. * ( / n)
where s is the sample standard deviation and n is the sample size.
Since n is at denominator , so the margin of error is inversely proportional to the sample size.
As the sample size decreases , the margin of error and hence the width of the interval increases.
d.f. = n - 1
As sample size decreases , the d.f. also decreases.
For smaller value of d.f. , the larger is the /2,d.f.
So , as sample size decreases , the value of /2,d.f. increases and hence the margin of error also increases.
In the given example , the sample size is decreases from 300 to 221.
So , the width and the margin of error would be increased.