In: Statistics and Probability
An Internet user wants to know the average download speed for his Internet connection. Suppose we know that the standard deviation is 7 mbps. He runs a speed test everyday at noon for 30 days. The average speed of the tests was 13.68 mbps. Construct a 95% confidence interval for the average speed of this Internet connection at noon.
Solution :
Given that,
Point estimate = sample mean =
= 13.68
Population standard deviation =
= 7
Sample size n =30
At 95% confidence level the z is ,
= 1 - 95% = 1 - 0.95 = 0.05
/ 2 = 0.05 / 2 = 0.025
Z/2 = Z0.025 = 1.96 ( Using z table )
Margin of error = E = Z/2
* (
/n)
=1.96 * ( 7 / 30
)
E= 2.5049
At 95% confidence interval estimate of the population mean
is,
- E <
<
+ E
13.68 - 2.5049 <
< 13.68 + 2.5049
11.1751 <
< 16.1849
( 11.1751,16.1849, )
At 95% confidence interval estimate of the population mean
is,( 11.1751,16.1849, )