MARGIN OF ERROR

 
margin of error e is the maximum likely (with
probability 1- α) difference between the observed
sample mean and the true value of the population
mean µ. the margin of error e also called the maximum
error of the estimate can be found by multiplying the
critical value and the standard deviation of the sample
mean.
 
In symbol,
Solving this equation for n, we get
Becomes where s = sample standard
deviation.
Example 1. The standard deviation of a
random sample of 36, taken from a
large population is 18.2. How large
sample is required if we want to be
95% confident that our estimate of µ
will not be off by more than 4?
 
solution.
the given data are n = 36, s = 18.2, e
= 4, α = 0.05, = 1.96
then the required sample size is, =
79.530724 or 80.
Example 2. The time required to finish an
assembly job is believed to be normally
distributed with a standard deviation of 16
minutes. How large sample is required if we
want to have a probability of 0.90 that the
sample mean will differ from the true mean
by at most 2.2 minutes?
 
Solution.
The given data are 𝛔 = 16, e = 2.2, α =
0.10, = 1.645
Then the required sample size is, =
143.128595 or 143.
Estimation of means (small
samples)
 
A (1-α)100% confidence interval for , based on a
random sample of size n<30 from normal (or
approximately normal) distribution with unknown
standard deviation, is given by,
where = t value with df = n -1 having an area of to
the right.
 
Example 1. A random sample of size 25,
taken from a normal population, has a
mean of 80 and a standard deviation of
5. Construct a 95% confidence interval
for mean of the population.
 
Solution.
We have n = 25, x = 80, s = 5, α = 0.05, = 0.025.
Since df = 24, now let’s substitute to the formula.
Therefore, we can be 95%
confident that the true mean
is within the interval between
77.936 and 82.064.
Example 2. Ten test runs were conducted in
order to estimate the average time required
to assemble a mechanical device. The
results (rounded to the nearest minute) are
22, 24, 28, 30, 26, 32, 35, 20, 24, 25
construct a 99% confidence interval for
true mean.
Solution
We calculate the mean x and the standard deviation using the usual procedure
x

20 400

22 484

24 576

24 576

25 625

26 676

28 784

30 900

32 1024

35 1225

266 7270
 

=
= 4.65
Since, α = 0.01, = 0.005, and df = 9 we have . the 99% confidence interval is
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