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You are interested to calculate a confidence interval for a population mean. You have available data for the sample mean, the population standard deviation, and the sample size. You intend to calculate a 80% confidence interval. Which value of confidence coefficient should be used for an 80% confidence interval?

Note: Refer to the table below:
z_(0.10) z_(0.05) z_(0.025) z_(0.01) z_(0.005)
1.282 1.645 1.960 2.326 2.576

Select the correct answer below:
a. Confidence coefficient =1.282
b. Confidence coefficient =1.645
c. Confidence coefficient =1.960
d. Confidence coefficient =2.326

1 Answer

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Final answer:

To calculate an 80% confidence interval for a population mean with a known standard deviation, use a confidence coefficient of 1.282, which corresponds to the z-score that puts 5% in each tail of the standard normal distribution.

Step-by-step explanation:

To calculate an 80% confidence interval for a population mean, you will need to use a confidence coefficient. This coefficient corresponds to the z-value from the standard normal distribution that captures the desired confidence level. For an 80% interval, we target the central 80% of the probability distribution. This means we are leaving 20% in the tails, or 10% in each tail since it's two-sided.

The critical z-values provided for various confidence levels in the question suggest those primarily used for constructing confidence intervals. For an 80% confidence interval, you would choose the z-value that leaves 10% of the distribution in the tails (5% in each tail). Based on the given options, the correct z-value is z_(0.10), which corresponds to a z-score of 1.282. Therefore, for an 80% confidence interval when the population standard deviation is known, use a confidence coefficient of 1.282.

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