Math Problem Statement

In a simple random sample of 200 households, the sample mean number of personal computers was 1.45. Assume the population standard deviation is σ = 0.85. Construct a 95% confidence interval for the mean number of personal computers.

Solution

To construct a 95% confidence interval for the mean number of personal computers, we can use the following formula for the confidence interval when the population standard deviation (σ\sigma) is known:

xˉ±Zσn\bar{x} \pm Z \cdot \frac{\sigma}{\sqrt{n}}

where:

  • xˉ\bar{x} = sample mean = 1.45
  • ZZ = Z-score corresponding to a 95% confidence level, which is approximately 1.96
  • σ\sigma = population standard deviation = 0.85
  • nn = sample size = 200

Step 1: Calculate the standard error

σn=0.852000.8514.140.0601\frac{\sigma}{\sqrt{n}} = \frac{0.85}{\sqrt{200}} \approx \frac{0.85}{14.14} \approx 0.0601

Step 2: Calculate the margin of error

Zσn=1.96×0.06010.1178Z \cdot \frac{\sigma}{\sqrt{n}} = 1.96 \times 0.0601 \approx 0.1178

Step 3: Construct the confidence interval

Lower limit=1.450.11781.33\text{Lower limit} = 1.45 - 0.1178 \approx 1.33 Upper limit=1.45+0.11781.57\text{Upper limit} = 1.45 + 0.1178 \approx 1.57

Thus, the 95% confidence interval for the mean number of personal computers is approximately: 1.33<μ<1.571.33 < \mu < 1.57

Would you like further explanation on any part of this calculation?

Here are some related questions that may help you explore this topic further:

  1. How do we determine the Z-score for different confidence levels?
  2. What is the significance of a 95% confidence level?
  3. How would the confidence interval change if the sample size increased?
  4. What if the population standard deviation were unknown—how would the calculation change?
  5. Why do we use the population standard deviation instead of the sample standard deviation in this case?

Tip: Remember that increasing the sample size generally leads to a narrower confidence interval, meaning greater precision in estimating the population mean.

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Math Problem Analysis

Mathematical Concepts

Statistics
Confidence Interval
Normal Distribution

Formulas

Confidence Interval formula: x̄ ± Z * (σ / √n)

Theorems

Central Limit Theorem

Suitable Grade Level

College Statistics