Math Problem Statement

The electric cooperative needs to know the mean household usage of electricity by its non-commercial customers in kWh per day. Assume that the population standard deviation is 1.41.4 kWh. The mean electricity usage per family was found to be 15.515.5 kWh per day for a sample of 142142 families. Construct the 80%80% confidence interval for the mean usage of electricity. Round your answers to one decimal place.

Solution

To construct an 80% confidence interval for the mean electricity usage per family, we will use the formula for the confidence interval for the population mean when the population standard deviation is known:

Confidence Interval=xˉ±z×σn\text{Confidence Interval} = \bar{x} \pm z \times \frac{\sigma}{\sqrt{n}}

Where:

  • xˉ\bar{x} is the sample mean.
  • zz is the z-score corresponding to the confidence level.
  • σ\sigma is the population standard deviation.
  • nn is the sample size.

Given dataTo construct an 80% confidence interval for the mean electricity usage per family, we will use the formula for the confidence interval for the population mean when the population standard deviation is known:

Confidence Interval=xˉ±z×σn\text{Confidence Interval} = \bar{x} \pm z \times \frac{\sigma}{\sqrt{n}}

Where:

  • xˉ\bar{x} is the sample mean.
  • zz is the z-score corresponding to the confidence level.
  • σ\sigma is the population standard deviation.
  • nn is the sample size.

Given

  • Population standard deviation (σ\sigma) = 1.4 kWh.
  • Sample mean (xˉ\bar{x}) = 15.5 kWh.
  • Sample size (nn) = 142.
  • Confidence level = 80%, so the z-score for an 80% confidence interval (from the z-table) is approximately z=1.28z = 1.28.

Step 1: Calculate the standard error of the mean (SE)

SE=σn=1.41421.411.9160.1175\text{SE} = \frac{\sigma}{\sqrt{n}} = \frac{1.4}{\sqrt{142}} \approx \frac{1.4}{11.916} \approx 0.1175

Step 2: Calculate the margin of error (ME)

ME=z×SE=1.28×0.11750.1504\text{ME} = z \times \text{SE} = 1.28 \times 0.1175 \approx 0.1504

Step 3: Construct the confidence interval

Confidence Interval=xˉ±ME=15.5±0.1504\text{Confidence Interval} = \bar{x} \pm \text{ME} = 15.5 \pm 0.1504

Lower limit = 15.50.150415.315.5 - 0.1504 \approx 15.3

Upper limit = 15.5+0.150415.715.5 + 0.1504 \approx 15.7

Final Answer:

The 80% confidence interval for the mean usage of electricity is approximately 15.3 kWh to 15.7 kWh per day.


Would you like more details or explanations on any part?

Here are 5 related questions you could explore:

  1. How is the z-score for different confidence levels determined?
  2. What happens if the population standard deviation is unknown?
  3. How would the confidence interval change with a larger sample size?
  4. Why is the z-score used instead of the t-score in this case?
  5. How does increasing the confidence level affect the width of the confidence interval?

Tip: As you increase the confidence level (e.g., from 80% to 95%), the confidence interval becomes wider because you are more certain that the true population mean lies within the interval.

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Math Problem Analysis

Mathematical Concepts

Statistics
Confidence Intervals
Normal Distribution

Formulas

Confidence Interval Formula: CI = x̄ ± z * (σ / √n)

Theorems

Central Limit Theorem

Suitable Grade Level

Undergraduate Statistics or Advanced High School