An automobile Company conducted a survey. In survey one of the questions was "After purchasing a new two-wheeler, how many years you use that vehicle?".
100 people participated in this survey and the mean of responses of above question was 12.20 years with standard deviation 6 years. Find the 90% confidence interval for the mean of number of years public uses two wheeler after purchasing.



Answer :

Answer:

the 90% confidence interval for the mean number of years people use a two-wheeler after purchasing it is [tex]\( (11.213 to 13.187) \)[/tex]years

Step-by-step explanation:

To find the 90% confidence interval for the mean number of years people use a two-wheeler after purchasing it, we can use the formula for the confidence interval:

[tex]\[ \text{Confidence Interval} = \bar{x} \pm Z \cdot \frac{s}{\sqrt{n}} \][/tex]

where:

-[tex]\( \bar{x} \)[/tex] is the sample mean,

- [tex]\( s \)[/tex] is the sample standard deviation,

- [tex]\( n \)[/tex] is the sample size,

- [tex]\( Z \)[/tex] is the critical value from the standard normal distribution corresponding to the desired confidence level.

Given:

- Sample mean [tex]\( \bar{x} = 12.20 \)[/tex] years,

- Sample standard deviation[tex]\( s = 6 \)[/tex]years,

- Sample size[tex]\( n = 100 \)[/tex],

- Desired confidence level [tex]\( 90\% \)[/tex].

1. Find the critical value [tex]\( Z \):[/tex]

  - For a 90% confidence level, the critical value [tex]\( Z \) is \( 1.645 \)[/tex].

2. Calculate the margin of error [tex]\( E \):[/tex]

 [tex]\[ E = Z \cdot \frac{s}{\sqrt{n}} \]  \[ E = 1.645 \cdot \frac{6}{\sqrt{100}} \] \[ E = 1.645 \cdot \frac{6}{10} \] \[ E = 1.645 \cdot 0.6 \] \[ E = 0.987 \][/tex]

3. Construct the confidence interval:

  [tex]\[ \text{Confidence Interval} = \bar{x} \pm E \][/tex]

 [tex]\[ \text{Confidence Interval} = 12.20 \pm 0.987 \][/tex]

 [tex]\[ \text{Confidence Interval} = (11.213, 13.187) \][/tex]

Therefore, the 90% confidence interval for the mean number of years people use a two-wheeler after purchasing it is [tex]\( (11.213, 13.187) \)[/tex] years. This means we are 90% confident that the true population mean of years people use a two-wheeler after purchase lies within this interval.