Interval Estimation for Mean.
A random sample of 100 car owners in Metro Manila shows that
a car is driven on the average 13,500 km per year with a
standard deviation of \,900 km. Construct a 90% confidence
interval for the average number of km a card is driven
annually.
Answers & Comments
Step-by-step explanation:
To construct a 90% confidence interval for the average number of kilometers a car is driven annually, we can use the formula:
Confidence Interval = x̄ ± Z * (σ / √n)
Where:
x̄ = sample mean
Z = Z-score corresponding to the desired confidence level (in this case, for a 90% confidence level, Z = 1.645)
σ = population standard deviation
n = sample size
Given:
x̄ = 13,500 km (sample mean)
σ = 900 km (population standard deviation)
n = 100 (sample size)
Plugging in the values into the formula, we have:
Confidence Interval = 13,500 ± 1.645 * (900 / √100)
Calculating the values inside the parentheses first:
900 / √100 = 900 / 10 = 90
Substituting the calculated value into the formula:
Confidence Interval = 13,500 ± 1.645 * 90
Calculating the values:
1.645 * 90 = 148.05 (rounded to two decimal places)
Therefore, the 90% confidence interval for the average number of kilometers a car is driven annually is:
13,500 ± 148.05
This can be written as:
(13,351.95, 13,648.05)
So, we can say with 90% confidence that the true average number of kilometers driven annually falls within the range of 13,351.95 km to 13,648.05 km.