In: Statistics and Probability
In a random sample of25 people, the mean commute time to work was 32.8 minutes and the standard deviation was 7.3 minutes. Assume the population is normally distributed and use a t-distribution to construct a 98% confidence interval for the population mean μ. What is the margin of error of μ? Interpret the results.
Solution :
Given that,
= 32.8
s =7.3
n =25
Degrees of freedom = df = n - 1 = 25- 1 =24
a ) At 98% confidence level the t is
= 1 - 98% = 1 - 0.98 = 0.02
/ 2 = 0.02/ 2 = 0.01
t /2,df = t0.01,24 = 2.492 ( using student t table)
Margin of error = E = t/2,df * (s /n)
= 2.492* ( 7.3/ 25)
E=3.6383
The 98% confidence interval estimate of the population mean is,
- E < < + E
32.8-3.6383 < < 32.8+ 3.6383
29.1617 < < 36.4383
( 29.1617, 36.4383)