a. Here, the population standard deviation is unknown, and the sample standard deviation must be used for the calculation of the confidence interval. Thus, to compute the confidence interval, the t-distribution must be used.
b. The confidence interval for the population mean, mu, when the population standard deviation, sigma is unknown and the sample standard deviation, s is used, is the t-confidence interval as follows:
such that
Here,
is the margin of error.
Here, n is the sample size, is the sample mean,
and
is the critical value of the t-distribution with , above which,
proportion of the observations lie, and below which,
proportion of the observations lie.
The sample size is, , so that the degrees of freedom is,
The means and standard deviations are obtained as follows:
The desired confidence level is 95%. Thus,
This implies that,
such that:
[Using the t-distribution table, or the Exel formula:
First, the margin of error is calculated below: