In: Statistics and Probability
14. A researcher estimates the 95% Confidence Interval for a sample (n=100) with a mean of M=3. The population mean and standard deviation are known as 2.5±2 (µ±σ). What is the upper confidence limit for this interval? A) 0.392 B) 1.96 C) 2.608 D) 3.392 E) There is not enough information to answer this question.
Solution:
Given,
= 2
n = 100
M = 3
Note that, Population standard deviation() is known..So we use z distribution.
Our aim is to construct 95% confidence interval.
c = 0.95
= 1- c = 1- 0.95 = 0.05
/2 = 0.05 2 = 0.025 and 1- /2 = 0.975
Search the probability 0.975 in the Z table and see corresponding z value
= 1.96
The margin of error is given by
E = /2 * ( / n )
= 1.96 * (2 / 100)
E = 0.392
Now , confidence interval for mean() is given by:
(M - E ) < < (M + E)
(3 - 0.392) < < (3 + 0.392)
2.608 < < 3.392
Upper confidence limit is 3.392
Answer : 3.392