In Exercise 31, the population mean salary is \$67,319. Does the t-value fall between -t0.98 and t0.98? (Source: Salary.com)
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7. Sampling Distributions & Confidence Intervals: Mean
Confidence Intervals for Population Mean
Problem 6.2.12
Textbook Question
In Exercises 9–12, construct the indicated confidence interval for the population mean μ using the t-distribution. Assume the population is normally distributed.
c = 0.99, xbar = 24.7, s = 4.6, n = 50
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Identify the given values: The confidence level (c) is 0.99, the sample mean (x̄) is 24.7, the sample standard deviation (s) is 4.6, and the sample size (n) is 50.
Determine the degrees of freedom (df) for the t-distribution. The formula is df = n - 1. Substitute n = 50 into the formula to calculate df.
Find the critical t-value (t*) corresponding to the confidence level (c = 0.99) and the degrees of freedom (df). Use a t-distribution table or statistical software to find this value.
Calculate the margin of error (ME) using the formula: ME = t* × (s / √n). Substitute the values of t*, s = 4.6, and n = 50 into the formula.
Construct the confidence interval for the population mean (μ) using the formula: CI = x̄ ± ME. Substitute x̄ = 24.7 and the calculated ME into the formula to find the lower and upper bounds of the confidence interval.
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Key Concepts
Here are the essential concepts you must grasp in order to answer the question correctly.
Confidence Interval
A confidence interval is a range of values, derived from sample statistics, that is likely to contain the population parameter (like the mean) with a specified level of confidence. For example, a 99% confidence interval suggests that if we were to take many samples and construct intervals in the same way, approximately 99% of those intervals would contain the true population mean.
Recommended video:
Introduction to Confidence Intervals
t-Distribution
The t-distribution is a type of probability distribution that is symmetric and bell-shaped, similar to the normal distribution, but has heavier tails. It is used instead of the normal distribution when the sample size is small (typically n < 30) or when the population standard deviation is unknown, making it particularly useful for constructing confidence intervals for the mean.
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Critical Values: t-Distribution
Sample Mean and Standard Deviation
The sample mean (x̄) is the average of a set of sample data points, providing an estimate of the population mean (μ). The sample standard deviation (s) measures the dispersion of the sample data around the mean. In constructing a confidence interval, both the sample mean and standard deviation are crucial for determining the range of values that likely contains the population mean.
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Calculating Standard Deviation
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