A simple random sample of size n is drawn from a population that is normally distributed. The sample mean, x overbar, is found to be 110, and the sample standard deviation, s, is found to be 10. (b) Construct a 98% confidence interval about mu if the sample size, n, is 26.
Solution :
Given that,
= 110
s =10
n = Degrees of freedom = df = n - 1 =26 - 1 = 25
At 98% confidence level the t is
= 1 - 98% = 1 - 0.98 = 0.02
/ 2 = 0.02/ 2 = 0.01
t /2,df = t0.01,25 =2.485 ( using student t table)
Margin of error = E = t/2,df * (s /n)
= 2.485 * (10 / 26)
= 4.87
The 98% confidence interval is,
- E < < + E
110 - 4.87 < < 110 + 4.87
(105.13 , 114.87)
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