Olivia Datema

Andrew Piggott
Mrs. Lewis
Statistics and Probability

Sample size: 35
Sample mean: 5.103
Sample standard deviation: 3.77
Degrees of freedom: 34
Critical values for 90%, 95%, and 99% confidence levels: 1.697, 2.042, 2.750
The maximal margin of error for 90%, 95%, and 99% confidence levels: 90%: 1.081;
95%: 1.301; 99%: 1.752
Determine 90%, 95%, and 99% confidence intervals for μ(the population mean):
90%: 4.022 < μ< 6.184; 95%: 3.802 < μ< 6.404; 99%: 3.351 < μ < 6.855

This data set that my partner and I were given was a bit curious in my opinion. Although

we paid more attention to the actual data set, one would have to take notice of the title, being

Annual profits per employee for companies in retail. This is absolutely fine, as tracking salary

and money is a fairly simple thing to do, however, I just wanted to make note that someone’s

salary was -$6,000 and that should be concerning. Back to the data, however, we were asked to

find a number of different values and intervals. The following are these values.

To find the sample size, we simply counted the number of salaries that were included in

the data set. Once we had counted them the sample size came out to 35. Now we had to find

the sample mean, to find this we could simply plug the numbers into a calculator, use 1 variable

statistics, and then you can see that the sample mean was 5.103. The same process can be

used to find the standard deviation, meaning that you can use 1 variable statistics on a

calculator and the same information can be presented to you. After taking a look, we found that

the standard deviation was 3.77. Next up, we had to find the degrees of freedom, which can

be done by subtracting 1 from the sample size, making the degrees of freedom here 34. After

this point, we were done just looking at the data and finding values, it was now time to calculate

confidence levels, margins of error, and confidence intervals.

 We were tased with finding critical values for 90%, 95%, and 99% confidence levels. A

90% confidence level would have a tc of 1.697. Then we found 95% confidence, which had

a tc of 2.042. Finally, we looked at 99% confidence, which had a tc of 2.750. After we found

the confidence levels, we had to find the confidence intervals for each level, meaning that we

had to find what reasonable range of numbers we could be confident that the population mean

would fall into. For the first interval, we have the mean between 4.022 < μ < 6.184: 90%. In the

second interval, we know that the mean is between 3.802 < μ < 6.404: 95%. For the last

interval, we determined that the mean falls within 3.351 < μ < 6.855: 99%.

In conclusion, my partner and I found that even though this is a relatively small data set,

the data still looks very accurate as to what the mean actually is. Looking at this data in the end,

what interested me was that the mean and the standard deviation were so close together,

because usually with cases of smaller numbers like this the standard deviation is a much

smaller number. However, I suppose that this is the case when you are dealing with negative

numbers this is most likely usually the case.