Question

Exhibit 8-1In order to estimate the average time spent on the computer terminals per student at a local university, data were collected from a sample of 81 business students over a one-week period. Assume the population standard deviation is 1.2 hours.Refer to Exhibit 8-1. If the sample mean is 9 hours, then the 95% confidence interval is approximately _____

Answer 1

Explanation:

Confidence interval is written in the form,

(Sample mean - margin of error, sample mean + margin of error)

The sample mean, x is the point estimate for the population mean.

Since the sample size is large and the population standard deviation is known, we would use the following formula and determine the z score from the normal distribution table.

Margin of error = z × σ/√n

Where

σ = population standard Deviation

n = number of samples

From the information given

x = 9

σ = 1.2

n = 81

To determine the z score, we subtract the confidence level from 100% to get α

α = 1 - 0.95 = 0.05

α/2 = 0.05/2 = 0.025

This is the area in each tail. Since we want the area in the middle, it becomes

1 - 0.025 = 0.975

The z score corresponding to the area on the z table is 1.96. Thus, confidence level of 95% is 1.96

Margin of error = 1.96 × 1.2/√81 = 0.26

The 95% confidence interval is

9 ± 0.26