In: Statistics and Probability
a sample of 245 observations is selected from a normal population for which the population standard deviation is known to be 25. the sample mean is 20. determine the standard error of the mean. determine the 90% confidence interval for the population mean.
Solution :
Given that,
= 20
= 25
n = 245
At 90% confidence level the z is ,
= 1 - 90% = 1 - 0.90 = 0.1
/ 2 = 0.1 / 2 = 0.05
Z/2 = Z0.05 = 1.645
The standard error of the mean = (/n)
= 25 245
The standard error of the mean = 1.6
Margin of error = E = Z/2* (/n)
= 1.645 * (25 / 245) = 2.6
At 90% confidence interval estimate of the population mean is,
- E < < + E
20 - 2.6 < < 20 + 2.6
17.4 < < 22.6
(17.4 , 22.6)