A consumer took a random sample of 45 cups of coffee from a dispenser and found an average of 8.3 ounces and a standard deviation of 0.5 ounces. Compute the 95% margin of error of the sample mean. (Choose the option closest to the correct value, show work.)
a. 2.42 oz. b. 0.15 oz. c. 0.07 oz.
Solution :
Given that,
Point estimate = sample mean = = 8.3
sample standard deviation = s = 0.5
sample size = n = 45
Degrees of freedom = df = n - 1 = 45-1= 44
At 95% confidence level the t is ,
= 1 - 95% = 1 - 0.95 = 0.05
/ 2 = 0.05 / 2 = 0.025
t /2,df = t0.025,44 = 2.015
Margin of error = E = t/2,df * (s /n)
= 2.015 * (0.5 / 45)
= 0.15
95% Margin of Error = 0.15 oz
Option b is correct
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