In a random sample of 22 people, the mean commute time to work was 32.1 minutes and the standard deviation was 7.3 minutes. Assume the population is normally distributed and use a t-distribution to construct a 99% confidence interval for the population mean μ. What is the margin of error of μ? Interpret the results.
Solution :
Given that,
= 32.1
s = 7.3
n = 22
Degrees of freedom = df = n - 1 = 2 - 1 = 21
At1 99% confidence level the t is ,
= 1 - 99% = 1 - 0.99 = 0.01
/ 2 = 0.01 / 2 = 0.005
t /2 df = t0.005,21 = 2.831
Margin of error = E = t/2,df * (s /n)
= 2.831 * (7.3/ 22) = 4.4060669
E=4.41 (rounded)
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