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The life in hours of a 75 -watt light bulb is known to be normally distributed with \(\sigma=25\) hours. A random sample of 20 bulbs has a mean life of \(\bar{x}=1014\) hours. (a) Construct a \(95 \%\) two-sided confidence interval on the mean life. (b) Construct a \(95 \%\) lower-confidence bound on the mean life. Compare the lower bound of this confidence interval with the one in part (a).

Short Answer

Expert verified
(a) 95% CI: [1003.05, 1024.95]. (b) Lower bound: 1004.81. The one-sided lower bound is higher than the two-sided.

Step by step solution

01

Identifying the Given Data and Formula

We are given that \[ \sigma = 25 \text{ hours}, \quad \bar{x} = 1014 \text{ hours,} \quad n = 20 \text{ bulbs} \] The distribution is normal, so we can use the Z-distribution for this population because \( \sigma \) is known. The two-sided confidence interval for the mean can be constructed using the formula: \[ \bar{x} \pm Z_{\frac{\alpha}{2}} \cdot \frac{\sigma}{\sqrt{n}} \] Where \( Z_{\frac{\alpha}{2}} \) is the Z-score for a \( 95\% \) confidence level from the standard normal distribution table.
02

Calculate the Z-score for 95% Confidence

For a \( 95\% \) confidence interval, the significance level is \( \alpha = 0.05 \). Hence, \( \frac{\alpha}{2} = 0.025 \). The Z-score for \( 0.025 \) area in each tail is \( Z_{0.025} = 1.96 \).
03

Calculate the Margin of Error

The margin of error (ME) is calculated by: \[ ME = Z_{0.025} \cdot \frac{\sigma}{\sqrt{n}} = 1.96 \cdot \frac{25}{\sqrt{20}} \]First, calculate \( \frac{25}{\sqrt{20}} \):\[ \frac{25}{\sqrt{20}} \approx 5.5902 \]Then, multiply by 1.96:\[ ME \approx 1.96 \cdot 5.5902 \approx 10.9532 \]
04

Construct the Two-Sided Confidence Interval

Using the margin of error, the confidence interval is:\[ 1014 \pm 10.9532 \]Calculate the interval:Lower bound: \[ 1014 - 10.9532 = 1003.0468 \] Upper bound: \[ 1014 + 10.9532 = 1024.9532 \] Thus, the \(95\%\) confidence interval is \([1003.05, 1024.95]\).
05

Calculate the 95% Lower-Confidence Bound

For the \(95\%\) lower-confidence bound, we only consider the one-sided Z-score for \(\alpha = 0.05\), which is 1.645. The formula for the lower bound is:\[ \bar{x} - Z_{0.05} \cdot \frac{\sigma}{\sqrt{n}} \]Substitute the values:\[ 1014 - 1.645 \cdot 5.5902 \approx 1014 - 9.1945 = 1004.8055 \]
06

Compare the Lower Bounds

The lower bound of the two-sided confidence interval is \(1003.05\), whereas the lower bound for the one-sided \(95\%\) lower-confidence bound is \(1004.81\). The one-sided lower bound is higher than the two-sided confidence interval lower bound.

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Key Concepts

These are the key concepts you need to understand to accurately answer the question.

Normal Distribution
When we're talking about the normal distribution, we're diving into one of the most fundamental concepts in statistics. Imagine a bell-shaped curve that represents how data is spread out. This curve is centered around the mean, the average of all data points. Most data points will cluster around the center with fewer points as you move further away. This characteristic makes the normal distribution symmetrical about its mean.
Why is this important? Well, many natural phenomena and measurements, like the life of a light bulb, tend to follow a normal distribution. This allows statisticians to use it for making inferences about the population (all light bulbs in this case) by sampling a smaller subset (20 bulbs here). If we know the mean and standard deviation, we can predict the percentage of observations falling within any number of standard deviations from the mean. This makes it an incredibly powerful tool for understanding data.
Z-score
A Z-score tells us how many standard deviations away a particular data point is from the mean. In simpler terms, it's a way to measure how unusual or typical a data point is within a distribution. When using the normal distribution, the Z-score lets us find the probability of observing a value as extreme or more extreme than the one we have.
For constructing confidence intervals, we often use specific Z-scores that correspond to certain levels of confidence. For instance, a 95% confidence interval, as in the light bulb problem, uses a Z-score of 1.96. This number comes from the standard normal distribution and represents the range where 95% of all observations are likely to fall. By looking at an observation's Z-score, we can estimate its probability and, consequently, how our sample compares to the entire population.
Margin of Error
The margin of error represents the amount by which we expect our sample's mean estimate to fluctuate from the true population mean. It's directly influenced by our confidence level and the variability of our data, indicated by the standard deviation. In statistical terms, the margin of error helps us construct a range around our point estimate (mean) where the actual population parameter is expected to reside with a certain level of confidence.
In our exercise, the margin of error is calculated by multiplying the Z-score (1.96 for a 95% confidence interval) by the standard error (the standard deviation divided by the square root of the sample size). This value, 10.9532 in our lightbulb example, is crucial because it defines how wide our confidence interval is, thereby indicating the precision of our estimate.
Statistical Inference
Statistical inference involves drawing conclusions about a population based on a sample taken from it. The main goal is to estimate population parameters, like the mean, and assess how accurate those estimates are. By leveraging statistical inference, we can make educated guesses about population characteristics without examining every individual within it.
There are several tools within statistical inference, and constructing confidence intervals is one such technique. By using the sample mean, standard deviation, and a confidence level, we infer the range where the true population mean is likely to fall. When applied to problems like our light bulb example, statistical inference allows us to understand and make predictions about the average life span of all bulbs, not just the 20 we sampled. This extends our insights and decision-making from a small sample to the entire population, a fundamental aspect of statistical analysis.

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Most popular questions from this chapter

A healthcare provider monitors the number of CAT scans performed each month in each of its clinics. The most recent year of data for a particular clinic follows (the reported variable is the number of CAT scans each month expressed as the number of CAT scans per thousand members of the health plan): \(2.31,2.09,2.36,1.95,1.98,2.25,2.16,2.07,1.88,1.94,1.97,\) \(2.02 .\) (a) Find a \(95 \%\) two-sided CI on the mean number of CAT scans performed each month at this clinic. (b) Historically, the mean number of scans performed by all clinics in the system has been \(1.95 .\) If there any evidence that this particular clinic performs more CAT scans on average than the overall system average?

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