In: Statistics and Probability
A chocolate chip cookie manufacturing company recorded the number of chocolate chips in a sample of 40 cookies. The mean is 23.47 and the standard deviation 2.83. Construct a 98% confidence interval estimate of the standard deviation of the numbers of chocolate chips in all such cookies. Also, please explain how to use a calculator with this example.
A chocolate chip cookie manufacturing company recorded the number of chocolate chips in a sample of 40 cookies. The mean is 23.47 and the standard deviation 2.83.
Confidence Interval is a range of values we are fairly sure our true value lies in.
Calculating the Confidence Interval
Step 1: find the number of observations n, calculate their mean , and standard deviation
Using our example:
Step 2: decide what Confidence Interval we want: 98%. Then find the "Z" value for that Confidence Interval in Normal Distribution table or through a brief from of it given below
Confidence Interval |
Z |
80% | 1.282 |
85% | 1.440 |
90% | 1.645 |
95% | 1.960 |
99% | 2.576 |
98% | 2.33 |
99.9% | 3.291 |
For 98% the Z value is 2.33
Step 3: use that Z in this formula for the Confidence Interval
±
And we have:
23.47 ± 2.33 × 2.83/√40 = 23.47 ± 1.0426
22.4274 24.5126