MGMT305-Lec5

Slide 18 intervalestimationofapopulationmean

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Unformatted text preview: Estimate of Population Mean: Example 1: Discount Sounds a. Calculate the margin of error. D S b. Find the 95% confidence interval estimate of µ . We are 95% confident that the above interval contains the population mean. Slide 16 Interval Estimation of a Population Mean s Example 2: Apartment Rents A reporter for a student newspaper is writing an article on the cost of off­campus housing. A sample of 16 efficiency apartments within a half­mile of campus resulted in a sample mean of $650 per month and a sample standard deviation of $55. Slide 17 Interval Estimation of a Population Mean s Example 2: Apartment Rents Let us provide a 95% confidence interval estimate of the mean rent per month for the population of efficiency apartments within a half­mile of campus. We will assume this population to be normally distributed. Slide 18 Interval Estimation of a Population Mean Q. Compute the 95% confidence interval for the population mean and interpret the result. s We are 95% confident that the mean rent per month for the population of efficiency apartments within a half­mile of campus is between Slide 19 Interval Estimation of a Population Mean At 95% confidence, α = .05, and α/2 = .025. t.025 is based on n − 1 = 16 − 1 = 15 degrees of freedom. In the t distributi...
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