In: Statistics and Probability
A personnel manager has found that historically the scores on aptitude test given to applicants for entry level positions follow a normal distribution. A random sample of nineteen test scores from the current group of applicants had a sample mean score of 187.9 points and sample standard deviation as 32.4 points.
a. Find the margin of error.
b. Construct a confidence interval estimate for population mean with 80 percent level of confidence.
c. Construct a confidence interval estimate for population mean with 85 percent level of confidence.
SOLUTION:
From given data,
A personnel manager has found that historically the scores on aptitude test given to applicants for entry level positions follow a normal distribution. A random sample of nineteen test scores from the current group of applicants had a sample mean score of 187.9 points and sample standard deviation as 32.4 points.
mean = =187.9
standard deviation =s = 32.4
Sample size = n = 19
(a). Find the margin of error.
standard error = s / sqrt( n ) = 32.4 / sqrt(19) = 7.433069
margin of error (ME) = Critical value x Standard error
For 80% level of confidence
To find the critical value, we take the following steps.
α = 1 - (confidence level / 100) = 1 - 0.80 = 0.2
α/2 = 0.2/2 = 0.1
df = n - 1 = 19 -1 = 18
Critical value : tα/2,df = t0.1,18 = 1.33039
margin of error (ME) = 1.33039 x 7.433069 = 9.888
For 85% level of confidence
To find the critical value, we take the following steps.
α = 1 - (confidence level / 100) = 1 - 0.85 = 0.15
α/2 = 0.15/2 = 0.075
df = n - 1 = 19 -1 = 18
Critical value : tα/2,df = t0.075,18 = 1.50370
margin of error (ME) = 1.50370 x 7.433069 = 11.177
(b). Construct a confidence interval estimate for population mean with 80 percent level of confidence.
80 percent confidence interval
ME
- ME < < + ME
187.9 - 9.888< < 187.9 + 9.888
178.012 < < 197.788
c. Construct a confidence interval estimate for population mean with 85 percent level of confidence.
85 percent confidence interval
ME
- ME < < + ME
187.9 - 11.177 < < 187.9 + 11.177
176.723 < < 199.077