In: Statistics and Probability
A random sample of 80 car owners were asked how many years they
had owned their current car. The results were ¯x=7x¯=7 years and
s=2s=2. Estimate how long ago people typically acquired their car
(at the 90% confidence level).
Here, we should use:
Solution :
Given that,
Point estimate = sample mean = = 7
sample standard deviation = s = 2
sample size = n = 80
Degrees of freedom = df = n - 1 = 80 - 1 = 79
Using T interval
At 90% confidence level
= 1 - 90%
=1 - 0.90 =0.10
/2
= 0.05
t/2,df
= t0.05,79 = 1.664
Margin of error = E = t/2,df * (s /n)
= 1.664 * ( 2 / 80)
Margin of error = E = 0.37
The 90% confidence interval estimate of the population mean is,
± E
= 7 ± 0.37
= ( 6.63, 7.37)