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Estimating tex2html_wrap_inline2651 with a tex2html_wrap_inline4113 % confidence interval of length 2B

Here we will derive the sample size needed to obtain an interval of length 2B, where B indicates the largest possible distance between any tex2html_wrap_inline2651 in the confidence interval and the sample mean tex2html_wrap_inline2643 . Recall that

displaymath4125

Solving for n we obtain

displaymath4129

Use of the formula above requires tex2html_wrap_inline2697 to be known, which seldom happens in practice. When tex2html_wrap_inline2697 is unknown, one either estimate it with the sample standard deviation from the previous study or just use the 1/4 of the range (the difference between the largest and the smallest observations) as a rough guess.

EXAMPLE:\: A factory claims that the average working hour tex2html_wrap_inline2651 of its employees is 40. 49 workers are chosen randomly and their average working hours is 42 with the standard deviation equal to 6. For future studies, if we want to construct a 99% confidence interval with the total length less than two hours, how large a sample will we need? (Assume tex2html_wrap_inline4137 .)

We would need n=240 to get a 99% confidence interval whose length is at most 2. Note that we always round up.



Jan Lethen
Wed Nov 13 16:20:46 CST 1996