Finding Confidence Intervals Using T Distribution

A person selects a random sample of 15 credit cards and determines the annual interest rate, in percent, of each one. The sample mean is 12.42 with a sample standard deviation of 1.3. It is desired to construct a 90% Confidence Interval.

Find the Standard Error to three decimal places.

• 0.336

• 0.33566

• 13.156

• 0.087

The lifetime of a certain type of batter is known to be normally distributed with a standard deviation of 20 hours. A sample of 50 batteries had a mean lifetime of 120.1 hours. It is desired to construct a 99% confidence interval for the mean lifetime of this type of battery. What is the Confidence Interval to one decimal place?

• (114.5, 125.6)

• (112.8, 127.4)

• (112.82, 127.38)

• (114.56, 125.64)

Which of the following actions would produce a confidence interval with a smaller width assuming all other contingencies remained constant?

• Using a higher confidence level

• Using a lower confidence level

A 90% confidence interval for the average salary of all CEOs in the electronics industry was constructed using the results of a random survey of 45 CEOs. The interval was ($139,048, $154,144). Give a practical interpretation of the interval.

• 90% of the sampled CEOs have salaries that fell in the interval $139,048 to $154,144

• We are 90% confident that the mean salary of all CEOs in the electronics industry falls in the interval $139,048 to $154,144. 

• 90% of all CEOs in the electronics industry have salaries that fall between $139,048 to $154,144

• We are 90% confident that the mean salary of the sampled CEOs falls in the interval $139,048 to $154,144.

Which of the following values below represents the critical value for a 98% confidence interval?

• 2.326

• 2.054

• 1.645

• 3.091

Construct a 90% confidence interval of a random sample size of 19 cows with a mean of 155.526 and a standard deviation of 19.993. 

• (146.54, 164.52)

• (147.57, 163.48)

• (147.59, 163.46)

• (143.69, 167.36)

Which of the following is an example of an interval estimate?

• point estimate 

• critical value

• confidence interval

• statistic

A __________ gives an interval of plausible values for the _____________. 

• confidence interval, statistic

• point estimate, parameter

• point estimate, statistic

• confidence interval, parameter

Complete the equation: 
point estimate +/- _____

• standard deviation

• margin of error

• critical value

• confidence level

What critical value t* is used in constructing a 99% confidence interval based on n = 12 randomly selected observations. 

• 3.106

• 3.055

• 2.58

• 1.96