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Confidence Interval Notes

How do we make claims in statistics?

What is a confidence Interval?

Confidence Interval for Means:

Create a 95% confidence Interval using the Create a 90% confidence Interval using the
following information: following information:

𝑥̅ = 10 𝑠 = 3 𝑛 = 100 𝑥̅ = 75 𝑠 = 5.5 𝑛 = 190

Confidence Interval for Proportions:

Create a 95% confidence Interval using the Create a 99% confidence Interval using the
following information: following information:

𝑝̂ = 0.25 𝑛 = 100 𝑝̂ = 0.60 𝑛 = 100

Examples:

1) You want to rent an unfurnished one-bedroom apartment in Durham, NC next year. The mean
monthly rent for a random sample of 60 apartments advertised on Craig’s List (a website that lists
apartments for rent) is $1000. Assume the standard deviation of $200. Construct a 95% confidence
interval.

If an unfurnished apartment was 900, does this seem to be priced correctly?

2) We take a random sample of 50 households in order to estimate the percentage of all homes in the
United States that have a refrigerator. It turns out that 46 of the 50 homes in our sample have a
refrigerator. Create a 95% confidence interval for the percentage of homes which have a refrigerator?

USA Today claims 97% of homes in the USA have refrigerators? Is this a valid claim?

3) You Try: Duncan Jones kept careful records of the fuel efficiency of his car. After the first 100 times
he filled up the tank, he found the mean was 23.4 miles per gallon (mpg) with standard deviation of
0.9 mpg. Compute the 95 percent confidence interval for his mpg.

The car dealership claims this car has mpg of 25. Could this be true?
4) In the Framingham Offspring study 1,219 subjects were on anti-hypertensive medication out of
3,532 total subjects. We want to compute the proportion of subjects on anti-hypertensive
medication in the Framingham Offspring Study and also wanted the 95% confidence interval for the
estimated proportion.

Notes: