Confidence Intervals

(σ unknown)

EXAMPLE


Data from the National Fire Protection Association gives a sample f 7 homes with a sample mean 704.14 and a sample standard deviation f 1610.3. Find the 99% confidence interval for the mean number of home fires started by candles each year.

Step 1:

Collect all of the relevant information

n=7

x=7041.4

s=1610.3

C=99%

Step 2:

Find the degrees of freedom df=n1

df=71=6

Step 3:

Find the tα value for confidence 99% and df=6 from the t-table

t-table 99% confidence interval

tα=3.707

Step 4: 

Plug into our formula

xtαsnμx+tαsn

7041.4(3.707)(1610.37)μ7041.4+(3.707)(1610.37)

4785.2μ9297.6