Activity 1

7. What is the 95% confidence interval for a sample containing 100 values?

Sample containing 100 values, computing a 95% confidence interval for each sample means that
about 95% of the 100 confidence intervals will have the true value of mean (μ).

According to Central Limit Theorem,

and a standard deviation:

P (-1.96 < Z < 1.96) = 0.95, i.e., there is a 95% probability that a standard normal variable, Z, is -
1.96 and 1.96.

According to Central Limit Theorem,

By substituting:

Using algebra,

then
 finally

Provides 95% confidence interval:

Hence, the error margin: 1.96 times the standard error and 1.96 shows that a 95% confidence
level was chosen.