In: Statistics and Probability
Suppose a random sample of 25 is drawn from a population whose standard deviation is unknown. If the sample mean is 125 and the sample standard deviation is 10, the 90% confidence interval to estimate the population mean is between
Given that,
= 125
s =10
n = 25
Degrees of freedom = df = n - 1 = 25- 1 = 24
At 90% confidence level the t is ,
= 1 - 90% = 1 - 0.90 = 0.1
/ 2 = 0.1 / 2 = 0.05
t /2,df = t0.05,24 = 1.711 ( using student t table)
Margin of error = E = t/2,df * (s /n)
=1.711 * ( 10/ 25) = 3.4220
The 90% confidence interval estimate of the population mean is,
- E < < + E
125 - 3.4220 < < 125+ 3.4220
121.5780 < < 128.4220
( 121.5780 ,128.4220)