A random sample of 36 drivers used on average 749 gallons
per year. If the standard deviation of the population is 32
gallons, find the following:
a. Find the 90% confidence interval of the population mean.
b. Find the 95% confidence interval of the population mean.
c. Find the 99% confidence interval of the population mean.



Answer :

To answer this question, we will calculate the confidence intervals using the z-score associated with each confidence level. We are given that the sample size (n) is 36, the sample mean (\(\bar{x}\)) is 749, and the population standard deviation (\(\sigma\)) is 32. Since the population standard deviation is known and the sample size is large enough, we can use the z-distribution for our calculations. Here are the steps to find the confidence intervals: 1. Find the z-score corresponding to each confidence level. 2. Calculate the margin of error for each confidence level. 3. Calculate the confidence interval for the population mean using the formula: \[ \text{Confidence Interval} = \bar{x} \pm \text{Margin of Error} \] **a. 90% Confidence Interval** 1. For the 90% confidence level, we need to find the z-score that cuts off the upper 5% of the normal distribution (since the middle 90% leaves 5% on each tail). It is commonly known that the z-score for 90% confidence is approximately 1.645. 2. Next, we calculate the margin of error: \[ \text{Margin of Error} = z \cdot \frac{\sigma}{\sqrt{n}} \] \[ \text{Margin of Error} = 1.645 \cdot \frac{32}{\sqrt{36}} \] \[ \text{Margin of Error} = 1.645 \cdot \frac{32}{6} \] \[ \text{Margin of Error} \approx 1.645 \cdot 5.333 \] \[ \text{Margin of Error} \approx 8.777 \] 3. Now, we calculate the confidence interval: \[ \text{CI}_{90\%} = 749 \pm 8.777 \] \[ \text{CI}_{90\%} \approx (740.223, 757.777) \] **b. 95% Confidence Interval** 1. For the 95% confidence level, the z-score that cuts off the upper 2.5% is commonly known to be approximately 1.96. 2. Calculate the margin of error using the z-score of 1.96: \[ \text{Margin of Error} = 1.96 \cdot \frac{32}{\sqrt{36}} \] \[ \text{Margin of Error} = 1.96 \cdot \frac{32}{6} \] \[ \text{Margin of Error} \approx 1.96 \cdot 5.333 \] \[ \text{Margin of Error} \approx 10.453 \] 3. The confidence interval is: \[ \text{CI}_{95\%} = 749 \pm 10.453 \] \[ \text{CI}_{95\%} \approx (738.547, 759.453) \] **c. 99% Confidence Interval** 1. For the 99% confidence level, the z-score that cuts off the upper 0.5% is commonly known to be approximately 2.576. 2. Calculate the margin of error using the z-score of 2.576: \[ \text{Margin of Error} = 2.576 \cdot \frac{32}{\sqrt{36}} \] \[ \text{Margin of Error} = 2.576 \cdot \frac{32}{6} \] \[ \text{Margin of Error} \approx 2.576 \cdot 5.333 \] \[ \text{Margin of Error} \approx 13.744 \] 3. The confidence interval is: \[ \text{CI}_{99\%} = 749 \pm 13.744 \] \[ \text{CI}_{99\%} \approx (735.256, 762.744) \] To summarize, the confidence intervals are: a. The 90% confidence interval is approximately (740.223, 757.777) b. The 95% confidence interval is approximately (738.547, 759.453) c. The 99% confidence interval is approximately (735.256, 762.744)