In: Statistics and Probability
2. The same sample of 48 aircraft revealed that the average time that the aircraft was down for “C” check was 27 days with a standard deviation of 5 days. The VP of operations wants to know how long the next aircraft due inspection will be out of service. Can you give him an estimate based on a 90% degree of confidence?
Solution :
Given that,
Point estimate = sample mean = 
 = 27
Population standard deviation =   
= 5
Sample size = n =48
At 90% confidence level
= 1 - 90%  
 = 1 - 0.90 =0.10
/2
= 0.05
Z
/2
= Z0.05 = 1.645
Margin of error = E = Z
/2
* ( 
 /n)
= 1.645 * ( 5 /  48
)
= 1.1872
At 90% confidence interval estimate of the population mean
is,
- E < 
 < 
 + E
27- 1.1872 <  
<27 + 1.1872
25.8128<  
< 28.1872
(  25.8128 ,  28.1872)