Solution :
Given that,
Point estimate = sample mean =
= 500
Population standard deviation =
= 49
Sample size = n =90
At 90% confidence level
= 1 - 90%
= 1 - 0.90 =0.10
/2
= 0.05
Z/2
= Z0.05 = 1.645
Margin of error = E = Z/2
* (
/n)
= 1.645 * (49 / 90
)
= 8.497
At 90% confidence interval estimate of the population mean
is,
- E <
<
+ E
500- 8.497 <
<500 + 8.497
491.5 <
< 508.5
(lower limit =491.5 ,upper limit = 508.5)
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