In: Statistics and Probability
Let's assume our class represents a normal population with a known mean of 95 and population standard deviation 3. There are 120 students in the class.
a. Construct the 95% confidence interval for the population mean.
b. Interpret what this means.
c. A few students have come in. Now we cannot assume normality and we don't know the population standard deviation. Let the sample mean = 90 and sample standard deviation = 2. Let's make the sample size 20. We can assume alpha to be .05. Construct the 95% confidence interval assuming this new information.
Solution :
Given that,
Point estimate = sample mean =
= 95
Population standard deviation =
= 3
Sample size = n =120
a) At 95% confidence level
= 1 - 95%
= 1 - 0.95 =0.05
/2
= 0.025
Z/2
= Z0.025 = 1.96
Margin of error = E = Z/2
* (
/n)
= 1.96 * (3 / 120
)
= 0.54
At 95% confidence interval estimate of the population mean is,
± E
95 ± 0.54
( 94.46, 95.54 )
b) We are 95% confident that the true mean of our class represents is between 94.46 and 95.54.
c) Point estimate = sample mean = = 90
sample standard deviation = s = 2
sample size = n = 20
Degrees of freedom = df = n - 1 = 20 - 1 = 19
At 95% confidence level
= 1 - 95%
=1 - 0.95 =0.05
/2
= 0.025
t/2,df
= t0.025,19 = 2.093
Margin of error = E = t/2,df * (s /n)
= 2.093 * ( 2 / 20)
Margin of error = E = 0.94
The 95% confidence interval estimate of the population mean is,
± E
= 90 ± 0.94
= ( 89.06, 90.94 )