Answer:
a)
So on this case the 87% confidence interval would be given by (70.76;73.24)
b)
And the margin of error is given by:
And replacing we can solve for the critical value
And we got:
And we can find the significance level with this formula:
"=2*T.DIST(-3.674;149;TRUE)"
And the confidence level would be 1-0.000332= 0.999668
And then that correspond to 99.96%
Step-by-step explanation:
Previous concepts
A confidence interval is "a range of values that’s likely to include a population value with a certain degree of confidence. It is often expressed a % whereby a population means lies between an upper and lower interval".
The margin of error is the range of values below and above the sample statistic in a confidence interval.
Normal distribution, is a "probability distribution that is symmetric about the mean, showing that data near the mean are more frequent in occurrence than data far from the mean".
represent the sample mean
population mean (variable of interest)
represent the sample standard deviation
n=150 represent the sample size
87% confidence interval
Part a
The confidence interval for the mean is given by the following formula:
(1)
The degrees of freedom are given by:
Since the Confidence is 0.87 or 87%, the value of and , and we can use excel, a calculator or a tabel to find the critical value. The excel command would be: "=-T.INV(0.065,149)".And we see that
Now we have everything in order to replace into formula (1):
So on this case the 87% confidence interval would be given by (70.76;73.24)
Part b
For this case the confidence interval is given by: (69,75)
We can estimate the margin of error like this:
And the margin of error is given by:
And replacing we can solve for the critical value
And we got:
And we can find the significance level with this formula:
"=2*T.DIST(-3.674;149;TRUE)"
And the confidence level would be 1-0.000332= 0.999668
And then that correspond to 99.96%