In: Statistics and Probability
An electrical firm manufacturers batteries that have a length of life that is approximately normally distributed with a standard deviation of 40 hours. If a sample of 64 batteries has an average life of 780 hours, find the bounds of a 95% confidence interval for the population mean of all batteries produced by this firm.
The values provided in the above question are as below
Sample mean = = 780
standard deviation = = 40
Sample size = = 64
Confidence level = 95% = 0.95
1 - = 0.95
= 1 - 0.95
= 0.05
/2 = 0.025
We find is the z-value leaving an area of 0.025 to the right.
That is, the probability of this area is 1 - 0.025 = 0.975
Using standard normal table
We find the z value whose probaility is 0.975 that is 0.9750 (Using 4 decimal places)
Because, all the probability values in standard normal table are in 4 decimal places.
We find the bounds of a 95% confidence interval for the population mean of all batteries produced by this firm using following formula
Or
The bounds of a 95% confidence interval for the population mean of all batteries produced by this
firm are (770.2, 789.8)
Summary :-
The bounds of a 95% confidence interval for the population mean of all batteries produced by this
firm are (770.2, 789.8)