Related questions with answers
A sample of 250 observations is selected from a normal population for which the population standard deviation is known to be 25. The sample mean is 20. a. Determine the standard error of the mean. b. Explain why we can use formula to determine the 95 percent confidence interval. c. Determine the 95 percent confidence interval for the population mean
Solution
VerifiedA sample of observations is taken from a normal population with a standard deviation of . Sample mean is .
The central limit theorem says that the sampling distribution of the mean becomes a normal distribution as sample size increases. A sample of 250 observations is large enough to assume that the sampling distribution will follow the normal distribution.
For a 95 percent level of confidence, the value of is obtained by locating in the table given in Appendix B1. The value of .
So, and . So, percent confidence interval for population mean is .
Create a free account to view solutions
Create a free account to view solutions
Recommended textbook solutions

Statistical Techniques in Business and Economics
15th Edition•ISBN: 9780073401805 (11 more)Douglas A. Lind, Samuel A. Wathen, William G. Marchal
Statistical Techniques in Business and Economics
17th Edition•ISBN: 9781259666360 (6 more)Douglas A. Lind, Samuel A. Wathen, William G. Marchal
Statistics for Business and Economics
13th Edition•ISBN: 9781305983038David R. Anderson, Dennis J. Sweeney, James J Cochran, Jeffrey D. Camm, Thomas A. Williams
Statistics for Business and Economics
13th Edition•ISBN: 9781337359917David R. Anderson, Dennis J. Sweeney, James J Cochran, Jeffrey D. Camm, Thomas A. WilliamsMore related questions
1/4
1/7