In a random sample of 13 microwave ovens, the mean repair cost was $80.00 and th

Question

In a random sample of 13 microwave ovens, the mean repair cost was $80.00 and the standard deviation was $15.40. Using the standard normal distribution with the appropriate calculations for a standard deviation that is known, assume the population is normally distributed, find the margin of error and construct a 95% confidence interval for the population mean mu. A 95% confidence interval using the t-distribution was (70.7, 89.3). Compare the results. The margin of error of mu is (Round to two decimal places as needed.)

Explanation / Answer

We are given,

Sample mean – Margin of Error = 70.7 ---- (1)

Sample mean + Margin of Error = 89.3 ---- (2)

We add both the equations and we get

2 sample means = (70.7 + 89.3)/2 = 80

Sample mean – Margin of Error = 70.7

Or

Margin of Error = Sample mean – 70.7 = 80 – 70.7 = 9.3

Answer:

Margin of Error = 9.30

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