In each exercise 8.63-8.68, we provide a sample mean, sample size, population standard deviation, and confidence level. In each case, perform the following tasks:

a. Use the one-mean z-interval procedure to find a confidence interval for the mean of the population from which the sample was drawn.

b. Obtain the margin of error by taking half the length of the confidence interval.

c. Obtain the margin of error by using Formula 8.1 on page 325

x¯=30,n=25,σ=4, confidence level =90%

Short Answer

Expert verified

Part (a) The 90%confidence interval for μis (28.684,31.316)

Part (b) The margin of error by using the half-length of the confidence interval is 1.316

Part (c) Thus, the margin of error by using the formula is 1.316

Step by step solution

01

Part (a) Step 1: Given information

x¯=30,n=25,σ=4, confidence level =90%

02

Part (a) Step 2: Concept

The formula used: the confidence intervalx¯±za2σnandMargin of error(E)=za2σn

03

Part (a) Step 3: Calculation

Compute the 90%confidence interval for $\mu$.

The needed value of zα2 with a 90%confidence level is1.645 according to "Table II Areas under the standard normal curve."

Thus, the confidence interval is,

x¯±za2σn=30±1.645425=30±1.645(0.8)=30±1.316=(28.684,31.316)

Therefore, the 90%confidence interval for μis (28.684,31.316).

04

Part (b) Step 1: Calculation

Using the half-length of the confidence interval, calculate the margin of error.
Margin of error=Upper limit-Lower limit2=31.315-28.6842=2.6312=1.316

Thus, the margin of error by using the half-length of the confidence interval is 1.316

05

Part (c) Step 1: Calculation

Using a formula, calculate the margin of error.

Margin of error(E)=za2σn=1.645425=1.645(0.8)=1.316

Thus, the margin of error by using formula is 1.316

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Most popular questions from this chapter

Explain the effect on the margin of error and hence the effect on the accuracy of estimating a population mean by a sample mean.

Decreasing the sample size while keeping the same confidence level.

Venture-Capital Investments. In Exercise 8.69, you found a 95%confidence interval for the mean amount of all venture-capital investments in the fiber optics business sector to be from \(5.389million to\)7.274million. Obtain the margin of error by

a. taking half the length of the confidence interval.

b. using Formula 8.1on page 325. (Recall that and that σ=$2.04million.)

A simple random sample of size 100 is taken from a population with an unknown standard deviation. A normal probability plot of the data displays significant curvature but no outliers. Can you reasonably apply the t-interval procedure? Explain your answer.

Prices of New Mobile Homes. Recall that a simple random sample of 36 new mobile homes yielded the prices, in thousands of dollars, shown in Table 8.1on page 315 . We found the mean of those prices to be \(63.28thousand.

a. Use this information and Procedure 8.1on page 322 to find a 95%confidence interval for the mean price of all new mobile homes. Recall that σ=\)7.2thousand.

b. Compare your 95%confidence interval in part (a) to the one found in Example 8.2(c) on page 317 and explain any discrepancy that you observe.

One-Sided One-Mean z-Intervals. Presuming that the assumptions for a one-mean z-interval are satisfied, we have the following formulas for (1-α)-level confidence bounds for a population mean \(\mu\) :

- Lower confidence bound: x~-zσ·σ/n

- Upper confidence bound: x¯+zα·σ/n

Interpret the preceding formulas for lower and upper confidence bounds in words.

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