1)
a)
Level of Significance , α =
0.05
' ' '
z value= z α/2= 1.9600 [Excel
formula =NORMSINV(α/2) ]
Standard Error , SE = σ/√n = 10.0000 /
√ 100 = 1.0000
margin of error, E=Z*SE = 1.9600
* 1.0000 = 1.9600
confidence interval is
Interval Lower Limit = x̅ - E = 103.00
- 1.959964 = 101.0400
Interval Upper Limit = x̅ + E = 103.00
- 1.959964 = 104.9600
95% confidence interval is (
101.04 < µ < 104.96
)
b)
Level of Significance , α =
0.01
' ' '
z value= z α/2= 2.5758 [Excel
formula =NORMSINV(α/2) ]
Standard Error , SE = σ/√n = 10.0000 /
√ 100 = 1.0000
margin of error, E=Z*SE = 2.5758
* 1.0000 = 2.5758
confidence interval is
Interval Lower Limit = x̅ - E = 103.00
- 2.575829 = 100.4242
Interval Upper Limit = x̅ + E = 103.00
- 2.575829 = 105.5758
99% confidence interval is (
100.42 < µ < 105.58
)
2)
a) decreases
b) increases
c) increases
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