Dr Z decided to investigate the productivity of her plutonium mines. The standard deviation for the output is known (fat hint: use z-tables) and is 5 tons a day. The average output in a sample of a 100 mines was 66 tons. At 95 % confidence level, what is the margin of error? (Two decimals)
solutionPopulation standard deviation = = 5
Sample size n =100
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 ( Using z table )
Margin of error = E = Z/2
* (
/n)
= 1.96 * (5 / 100)
=0.98
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