In: Statistics and Probability
A small business ships specialty homemade candies to anywhere in the world. Past records indicate that the weight of orders is normally distributed. Suppose a random sample of 16 orders is selected and each is weighed. The sample mean was found to be 110 grams with a standard deviation of 14 grams. Show your work
A. Describe the sampling distribution for the sample mean.
B. What is the standard error?
C.. For 90% confidence, what is the margin of error?
D. Based on the sample results, create the 90% confidence interval and interpret.
Solution :
Given that,
Point estimate = sample mean = = 110
sample standard deviation = s = 14
sample size = n = 16
Degrees of freedom = df = n - 1 = 16 - 1 = 15
A) The sampling distribution for the sample mean is normal.
B) SE = s / n = 14 / 16 = 3.5
C) At 90% confidence level
= 1 - 90%
=1 - 0.90 =0.10
/2
= 0.05
t/2,df
= t0.05,15 = 1.753
Margin of error = E = t/2,df * (s /n)
= 1.753 * ( 14/ 16)
Margin of error = E = 6.14
D) The 90% confidence interval estimate of the population mean is,
± E
= 110 ± 6.14
= ( 103.86, 116.14 )
We are 90% confident that the true mean of Past records indicate that the weight of orders is between 103.86 and 116.14.