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This is a two column example of a model for calculating a confidence interval for a Population Mean from a sample mean, sigma known

Step-By-Step Example of a Confidence Interval for a Mean, sigma known (used Ex 8.2)

Suppose scores on exams in statistics are normally distributed with an unknown population mean and a population standard deviation of 3 points. A random sample of 36 scores is taken and gives a sample mean (sample mean score) of 68.

Find a 90% confidence interval for the true (population) mean of statistics exam scores.

Guidelines Example
Plan: State what we need to know. We are asked to find a 90% confidence interval for the mean exam score, μ, of statistics students. We have a sample of 68 students. We know the population standard deviations is 3.
Model: Think about the assumptions and check the conditions.

Randomization Condition: The sample is a random sample.

Independence Assumption: It is reasonable to think that the exam scores of 36 randomly selected students are independent.

10% Condition: I assume the statistic student population is over 360 students, so 36 students is less than 10% of the population.

Sample Size Condition: Since the distribution of the stress levels is normal, my sample of 36 students is large enough.

State the parameters and the sampling model The conditions are satisfied and σ is known, so we will use a confidence interval for a mean with known standard deviation.We need the sample mean and Margin of Error (ME).
x = 68; σ = 3; n = 36; ME = z a 2 ( σ n )
Mechanics: CL = 0.90, so α = 1-CL = 1-0.90 = 0.10. ;
a 2 = 0.05, z a 2 = z 0.05
0.05 is 1 – 0.05= 0.95So z 0.05 = 1.645
ME = 1.645 ( 3 36 ) = 0.8225
x - ME = 68 - 0.8225 = 67.1775
x + ME = 68 + 0.8225 = 68.8225
The 90% confidence interval for the mean score is (67.1775, 68.8225)

Conclusion: Interpret your result in the proper context, and relate it to the original question. I am 90% confident that the interval from 67.1775% to 68.8225% contains the true mean score of all the statistics exams. 90% of all confidence intervals constructed in this way contain the true mean statistics exam score.

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Source:  OpenStax, Collaborative statistics using spreadsheets. OpenStax CNX. Jan 05, 2016 Download for free at http://legacy.cnx.org/content/col11521/1.23
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