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| Question 1176562:  A random sample of 8 observations was drawn from a normal population. The sample mean and
 sample standard deviation are X = 40 and s = 10.
 a) Estimate the population mean with 95% confidence.
 b) Repeat part (a) assuming that you know that the population standard deviation is σ = 10.
 Answer by math_tutor2020(3817)
      (Show Source): 
You can put this solution on YOUR website! Part (a)
 
 The sample size is n = 8 and we don't know sigma, which is the population standard deviation. Instead, we have the sample standard deviation value s = 10. This sample statistic estimates the population parameter.
 
 Because n > 30 is not true, and we don't know sigma, we must use the T distribution.
 
 We have n-1 = 8-1 = 7 degrees of freedom.
 
 Use a T table such as this one
 https://www.sjsu.edu/faculty/gerstman/StatPrimer/t-table.pdf
 At the bottom of the table it shows the various confidence levels. Locate the 95% confidence level column.
 
 Then mark the df = 7 row
 This is what you should have
 
  We can see the value 2.365 is at the intersection of the row and column we highlighted.
 
 The t critical value is roughly t = 2.365
 
 Let's compute the lower bound L
 L = xbar - t*s/sqrt(n)
 L = 40 - 2.365*10/sqrt(8)
 L = 40 - 8.362
 L = 31.638
 L = 31.64
 
 Now the upper bound U
 U = xbar + t*s/sqrt(n)
 U = 40 + 2.365*10/sqrt(8)
 U = 40 + 8.362
 U = 48.362
 U = 48.36
 
 The 95% confidence interval in the form (L, U) is (31.64, 48.36)
 
 Answer: (31.64, 48.36)
 
 We can write this in the form L < mu < U to say 31.64 < mu < 48.36
 This format is more descriptive in that it's more clear that we're estimating mu here.
 
 ================================================================================
 
 Part (b)
 
 Now we're told that sigma = 10, while everything else is kept the same.
 
 Since we know sigma, we can use the Z distribution this time.
 
 Using a Z table, the critical value is roughly z = 1.960 at 95% confidence.
 
 Lower Bound
 L = xbar - z*sigma/sqrt(n)
 L = 40 - 1.960*10/sqrt(8)
 L = 40 - 6.930
 L = 33.07
 
 Upper Bound
 U = xbar + z*sigma/sqrt(n)
 U = 40 + 1.960*10/sqrt(8)
 U = 40 + 6.930
 U = 46.93
 
 As you can see, the format and structure of each formula is pretty much identical to the T distribution variety used in part (a). The only difference is that t has been replaced with z (so 2.365 is replaced with 1.960), and that we used sigma in place of s.
 
 Answer: (33.07, 46.93)
 
 This is equivalent to saying 33.07 < mu < 46.93
 
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