In: Statistics and Probability
The quality control manager at a light bulb factory needs to estimate the mean life of a large shipment of light bulbs. The process standard deviation is known to be 100 hours. A random sample of 64 light bulbs indicated a sample mean life of 350 hours. Set up a 95% confidence interval estimate of the true population mean life of light bulbs in this shipment. Interpret your confidence interval.
Solution :
Given that,
= 350
= 100
n = 64
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
Margin of error = E = Z/2* ( /n)
= 1.96 * (100 / 64)
= 24.5
At 95% confidence interval estimate of the population mean is,
- E < < + E
350 - 24.5 < < 350 + 24.5
325.5 < < 374.5
(325.5 , 374.5)