Arab World Edition - Benghezal, Statistics for Business

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Confidence Interval for the Population Mean

Technology C onfidence I ntervals

for

297 

Template 7.1B M eans

with

s U nknown

Figure 7.7 presents the case where the standard deviation is unknown and the sample is taken from a population that is normally distributed: we use the t-statistic. The sample size, the sample mean, and the sample standard ­deviation are entered in cells C17, C18, and C19 respectively. The confidence interval is automatically computed for different levels of confidence (cells B23:B26).

Example 7.6 A sample of hospitals in 20 regions of Saudi Arabia yielded a national average length of stay for inpatients of 3.8 days, with a standard deviation of 0.96 days. Assume that the distribution is normal. Construct a 95% confidence interval for the length of stay in Saudi hospitalsiii.

iii Source: 2009

Health Statistical Yearbook

(Continued )

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