Math Problem Statement
An economic surveys 19 adults living is Townsburg about their salaries. The mean annual salaries for those surveyed was found to be x̄ = $30,498, with a standard deviation of $3,148.
a) Find a 90% confidence interval for the true mean annual salary of adults living in Townsburg.
b) Provide the right endpoint of the interval as your answer.
Round your answer to the nearest dollar.
Solution
To solve this problem, we will first calculate the 90% confidence interval for the true mean annual salary of adults living in Townsburg.
Part (a): Finding the Confidence Interval
The formula for a confidence interval for a mean when the population standard deviation is unknown is:
Where:
- is the sample mean (given as $30,498),
- is the critical value from the t-distribution corresponding to the confidence level (90%),
- is the sample standard deviation (given as $3,148),
- is the sample size (given as 19).
Step 1: Find the critical value
For a 90% confidence level, the area in each tail of the t-distribution is . Thus, we need to find the t-value for 18 degrees of freedom (since ).
Using a t-table or statistical calculator, the critical t-value for 18 degrees of freedom at a 90% confidence level is approximately 1.734.
Step 2: Calculate the margin of error
The margin of error (E) is calculated using:
Substitute the values:
Step 3: Calculate the confidence interval
Now, calculate the confidence interval by adding and subtracting the margin of error from the sample mean:
So, the 90% confidence interval is approximately $29,246 to $31,750.
Part (b): Right endpoint of the interval
The right endpoint of the interval is approximately $31,750, which we round to the nearest dollar.
Final Answer:
- The right endpoint of the 90% confidence interval for the true mean annual salary is $31,750.
Would you like a more detailed explanation of any part of this process? Here are some related questions for further practice:
- How would the confidence interval change if the sample size were larger or smaller?
- How can the sample size be determined for a specific margin of error at a certain confidence level?
- What would happen if we used a 95% confidence level instead of 90%?
- How does the t-distribution differ from the normal distribution when constructing confidence intervals?
- What assumptions must be met in order to use the t-distribution for confidence intervals?
Tip: When calculating confidence intervals, always check the assumptions: random sampling, the data being approximately normally distributed, and using the t-distribution for small sample sizes (less than 30).
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Math Problem Analysis
Mathematical Concepts
Statistics
Confidence Interval
t-Distribution
Formulas
Confidence Interval formula: x̄ ± t(α/2) * (s / √n)
Margin of Error formula: E = t(α/2) * (s / √n)
Theorems
t-distribution for small sample sizes
Central Limit Theorem (implied for approximation)
Suitable Grade Level
Grades 11-12
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