In: Statistics and Probability
In a random sample of 28 people, the mean commute time to work was 30.1 minutes and the standard deviation was 7.2 minutes. Assume the population is normally distributed and use a t-distribution to construct a 95% confidence interval for the population mean mu. What is the margin of error of mu?
Interpret the results.
The confidence interval for the population mean mu is:
What is the margin of error of mu?
Solution :
Given that,
Point estimate = sample mean = = 30.1
sample standard deviation = s = 7.2
sample size = n = 28
Degrees of freedom = df = n - 1 = 2 8 - 1 = 27
At 95% confidence level the t is ,
= 1 - 95% = 1 - 0.95 = 0.05
/ 2 = 0.05 / 2 = 0.025
t /2,df = t0.025,27 = 2.052
Margin of error = E = t/2,df * (s /n)
= 2.052 * (7.2 / 28)
= 2.8
Margin of error = E = 2.8
The 95% confidence interval estimate of the population mean is,
- E < < + E
30.1 - 2.8 < < 30.1 + 2.8
27.3 < < 32.9
(27.3 , 32.9)