Question

The 90% confidence interval for the mean one-way commuting time in New York City is

5.22 < < 5.98 minutes. Construct a 95% confidence interval based on the same data.
Which interval provides more information?

Answer 1

95% provides more information

Explanation:

The confidence interval is obtained by using the relation :

Xbar ± Zcritical * σ/√n

(Xbar - (Zcritical * σ/√n)) = 5.22 - - - (1)

(Xbar + (Zcritical * σ/√n)) = 5.98 - - (2)

Adding (1) and (2)

2xbar = 5.22 + 5.98

2xbar = 11.2

xbar = 11.2 / 2 = 5.6

Margin of Error :

Xbar - lower C.I = Zcritical * σ/√n

Zcritical at 90% = 1.645

5.6 - 5.22 = 1.645 * (σ/√n)

0.38 = 1.645 * (σ/√n)

(σ/√n) = 0.38 / 1.645 = 0.231

Therefore, using the se parameters to construct at 95%

Zcritical at 95% = 1.96

Margin of Error = Zcritical * σ/√n

Margin of Error = 1.96 * 0.231 = 0.45276

C.I = xbar ± margin of error

C. I = 5.6 ± 0.45276

C.I = (5.6 - 0.45276) ; (5.6 + 0.45276)

C. I = (5.147 ; 6.053)

Hence, 95% confidence interval provides more information as it is wider.