In: Statistics and Probability
Conditions:
Work:
Interval:
Conclusion:
Solution :
Given that,
Point estimate = sample mean = = 7785
Population standard deviation = = 845.6
Sample size n =90
At 95% confidence level the z is ,
= 1 - 95% = 1 - 0.95 = 0.05
/ 2 = 0.05 / 2 = 0.025
Z / 2 = Z0.025 = 1.96 ( Using z table )
Margin of error = E = Z/2 * (
/n)
= 1.96* ( 845.6 / 90 )
= 174.7028
At 95% confidence interval estimate of the population mean
is,
- E < < + E
7785 - 174.7028 <
< 7785+ 174.7028
7610.2972 <
< 7959.7028
( 7610.2972 , 7959.7028 )