Question

Asked Feb 7, 2019

9 views

Step 1

**Confidence Interval:**

Confidence interval is the interval estimate of the population parameter. It is the range where the population parameter value will lie in between.

The form of the confidence interval is,

*CI *= Point estimate ± Margin of error

The 100*(1–α)% confidence level means 100*(1–α)% of all possible sample values within the confidence interval will have the population parameter value and 100*α% of sample values within the confidence interval will not have the population parameter.

The approximate 100*(1–α)% confidence interval for the population mean will be obtained using the formula given below:

Step 2

**Central limit theorem:**

If the sample size is large, then the sample mean will be approximately normally distributed with mean as population mean and standard deviation as (population standard deviation)/ SQRT(sample size), regardless of the distribution of the population from which the sample is taken.

In general the population standard deviation is rarely known. Hence, in practice *s _{X-}*

Therefore, the confidence interval will be defined as follows:

Step 3

**Obtain the cumulative probability value:**

The given confidence interval for population mean is *X-*bar ± *sX-*bar.

From the given confidence interval it is known that the critical value is *z*α/2 = 1.

Step-by-step procedure to obtain the cumulative probability value using the MINITAB software:

- Choose
**Calc > Probability Distributions.** - Choose ‘
**Normal**’ distribution. - Select
**Cumulative probability.** - Enter
**mean**as**0**and**standard deviation**as - Under...

Tagged in

Find answers to questions asked by student like you

Show more Q&A

Q: The price to earnings ratio (P/E) is an important tool in financial work. A random sample of 14 larg...

A: (a) Level of significance:Level of significance (α) indicates the probability of rejecting null hypo...

Q: What is your favorite color? A large survey of countries, including the United States, China, Russia...

A: A).State the appropriate hypothesis:Let P be the population proportion of individuals who claim blue...

Q: Jobs and productivity! How do retail stores rate? One way to answer this question is to examine annu...

A: Note:Hi! Thank you for posting the question. Since your question has more than 3 parts, we have solv...

Q: A political candidate has asked you to conduct a poll to determine what percentage of people support...

A: As there is no any estimates available, the sample proportion is assumed to be 0.50, that is, 50%.He...

Q: 2. Previously, you studied linear combinations of independent random variables. What happens if the ...

A: Consider the provided information:μx ≈ 7.34, σx ≈ 6.55, μy ≈ 13.19, σy ≈ 18.57, ...

Q: Do heavier cars really use more gasoline? Suppose a car is chosen at random. Let x be the weight of ...

A: Hi, since the problem posted by you contains multiple sub-parts, we are answering the first three su...

Q: The efficiency for a steel specimen immersed in a phosphating tank is the weight of the phosphate co...

A: Hi, since the problem posted by you contains multiple sub-parts, we are answering the first three su...

Q: Q5. You are considering two investment choices: a. 1 year CD that pays 2% for sure; b. investing in ...

A: Portfolio Mean and SDI am answering all the sub-partsQ5. You are considering two investment choices:...

Q: Workers at a large toxic cleanup project are concerned that their white blood cell counts may have b...

A: Let the random variable X be the white blood cell count per cubic millimetre of whole blood in a hea...