Additional Examples: Confidence intervals
Example
Descriptive statistics on a variable measured in a sample of n=127.3 are shown below.
Characteristic
variable
Sample Mean
Standard Deviation (s)
3,534
127.3
19.0
Determine the 95% and 90% confidence interval of this sample.
Answer
Because the sample is large, we can generate a 95% confidence interval for the variable using
the following formula:
The Z value for 95% confidence is Z=1.96 .
Substituting the sample statistics and the Z value for 95% confidence, we have
Therefore, the point estimate for the true mean of the sample under study in the population is
127.3, and we are 95% confident that the true mean is between 126.7 and 127.9. The margin of
error is very small (the confidence interval is narrow), because the sample size is large.
The 90% confidence interval for the sample mean would be: