Construct a 90% confidence interval for
Answer)
As the population s.d is unknown here we will use t distribution to estimate the interval
First we need to find the mean and s.d of the given data
Mean = 3642.5
S.d = 4486.929
N = 12
Degrees of freedom is = n-1 = 11
For 11 df and 90% confidence level
Critical value t from t table is = 1.8
Margin of error (MOE) = t*s.d/√n = 1.8*4486.929/√12 = 2326.146
Confidence interval is given by
(Mean - Moe, Mean + MOE)
(1316.354, 5968.646)
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