In: Statistics and Probability
. In a random sample of five people, the mean driving distance to work was 25.4 miles and the standard deviation was 5.2 miles. Assume the random variable is normally distributed and use a tdistribution to find the margin of error and construct confidence intervals for the population mean at the following confidence levels: (4 points each) a. 85% b. 90% c. 99%
Solution :
Given that,
Point estimate = sample mean = = 25.4
sample standard deviation = s = 5.2
sample size = n = 5
Degrees of freedom = df = n - 1 = 5 - 1 = 4
a. At 85% confidence level
= 1 - 85%
=1 - 0.85 =0.15
/2
= 0.075
t/2,df
= 1.778
Margin of error = E = t/2,df * (s /n)
= 1.778 * (5.2 / 5)
Margin of error = E = 4.13
The 85% confidence interval estimate of the population mean is,
- E < < + E
25.4 - 4.13 < < 25.4 + 4.13
21.27 < < 29.53
b. At 90% confidence level
= 1 - 90%
=1 - 0.90 =0.10
/2
= 0.05
t/2,df
= 2.132
Margin of error = E = t/2,df * (s /n)
= 2.132 * (5.2 / 5)
Margin of error = E = 4.96
The 90% confidence interval estimate of the population mean is,
- E < < + E
25.4 - 4.96 < < 25.4 + 4.96
20.44 < < 30.36
c. At 99% confidence level
= 1 - 99%
=1 - 0.99 =0.01
/2
= 0.005
t/2,df
= 4.604
Margin of error = E = t/2,df * (s /n)
= 4.604 * (5.2 / 5)
Margin of error = E = 10.71
The 99% confidence interval estimate of the population mean is,
- E < < + E
25.4 - 10.71 < < 25.4 + 10.71
14.69 < < 36.11