Math Problem Statement

Construct

aa

99%

confidence interval for the population standard deviation

sigmaσ

at Bank B.

Construct a 99% confidence interval for the population standard deviation σ at Bank B.

Solution

To calculate a 99% confidence interval for the population standard deviation (σ\sigma) at Bank B, we will use the sample data you provided. The steps involve:

  1. Calculating the sample mean (xˉ\bar{x}) and sample variance (s2s^2).
  2. Applying the chi-square distribution to find the confidence interval bounds for the variance (σ2\sigma^2).
  3. Deriving the confidence interval for the standard deviation.

Data for Bank B:

4.2,5.4,5.9,6.1,6.6,7.6,7.6,8.5,9.4,10.04.2, 5.4, 5.9, 6.1, 6.6, 7.6, 7.6, 8.5, 9.4, 10.0

Let's compute the necessary values:

  1. Sample size (nn) = 10 (since there are 10 values).
  2. Degrees of freedom (dfdf) = n1=9n - 1 = 9.
  3. Sample mean xˉ\bar{x} and sample variance s2s^2 for the Bank B data.

Next, I'll calculate these and use the chi-square distribution to construct the 99% confidence interval. Give me a moment.The sample variance for Bank B is approximately 3.353.35, with a sample standard deviation of approximately 1.831.83.

For a 99% confidence interval for the population standard deviation (σ\sigma) at Bank B, the interval is:

(1.13,4.17)(1.13, 4.17)

This means we are 99% confident that the true population standard deviation lies between 1.13 and 4.17.

Do you want further details on the process or have any questions? Here are 5 related questions to expand your understanding:

  1. How would the confidence interval change if the confidence level were 95%?
  2. How is the chi-square distribution used in estimating the variance?
  3. How would the confidence interval change if we had a larger sample size?
  4. Can this method be applied to non-normally distributed data?
  5. How do different levels of variance affect the reliability of service times at Bank B?

Tip: The wider your confidence interval, the less certain you are about the estimate, but you're more likely to capture the true parameter.

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Math Problem Analysis

Mathematical Concepts

Confidence Intervals
Standard Deviation
Chi-Square Distribution

Formulas

Variance: s^2 = Σ(x_i - x̄)^2 / (n - 1)
Confidence Interval for Variance: ( (n-1)s^2 / χ²_upper , (n-1)s^2 / χ²_lower )
Confidence Interval for Standard Deviation: ( √(lower bound), √(upper bound) )

Theorems

Chi-Square Distribution Theorem

Suitable Grade Level

Undergraduate Statistics