Confidence Interval Statistics for Business Statistics

Open, View, and/or
Download this Document

Total Length: 1111 words ( 4 double-spaced pages)

Total Sources: 5

Page 1 of 4

STATISTICS FOR BUSINESS & ECONOMICS Statistics for Business & EconomicsQuestion 1(a) Describe the 90% confidence interval for the average electricity bill in a household in May 2020. Interpret the meaning of the 90% confidence.Table 1: 90% CI for the Electricity Bill90% CI for Bill (2020)Mean31.036SD8.431446M.E1.999097Lower bound29.0369Upper bound33.0351Table 1 above presents the 90% confidence interval for the electricity bill. The results show that the 90% confidence interval was (29.04, 33.04). The 90% CI implies that the population means of bill fall within the confidence interval, indicating that the population means were significant at 10%. Hence, we can say that it is likely that the population means the true value.Discuss whether he can conclude that the average monthly electricity bill during the Covid-19 pandemic is $5 greater than that before the Covid-19.In addressing this question, I will use the independent t-test. This inferential statistical test aims to compare the means of the two groups independent of each other and assess if there is statistical evidence that the associated means of the population differs significantly (Weaver, Morales, and Dunn, 2017). Thus, I will aim to evaluate if the mean differences in electricity consumption between 2019 and 2020 differ significantly. The following hypothesis was proposed to aid in guiding my study;Ho: No significant mean differences of the electricity bill for 2019 and 2020Ha: There is a significant mean difference in the electricity bill for 2019 and 2020Hypothesis TestingTable 2:20192020Hypothesized MeanX-bar2631.04?78.4314n5050Statistical significance?0.1Alpha, a=0.01Test statistic;T= (26-31.04)/ sqrt [(72/50+8.43142/50)]= -5.01/1.5498 = -3.2327Tcritical= 1.645From the results presented above, the bill in 2019 had a lower mean ($26) than in 2020 ($31.04). The t-test results were presented as t=-3.23< 1.645. We reject the Ho, and the conclusion has arrived that the average monthly electricity bill in a household during the Covid-19 pandemic is $5 greater than before the Covid-19.(b) Discussion on effect of the confidence interval and sample sizeIn addressing this question, the conclusion will change if the 99.99% confidence interval is used and the number of data is a quarter of the original data set (a smaller sample size); this is because as we increase the confidence level, the width of the confidence interval also increases.

Stuck Writing Your "Confidence Interval Statistics for Business" Statistics?

View All Our Example Confidence Interval Statistics for Business Statistics

Have A Custom Example Essay Written

Thus, a larger confidence level increases the chance that the population means of…

[…… parts of this paper are missing, click here to view the entire document ]

…Summarize the above analysis in a simplified report for Mr. Tan.The current study aimed to compare the impacts of the covid 19 on the electricity consumption for the May 2019 and May 2020 periods. The study applied the independent t-test, which aims to compare the electricity consumption for two years. The study found that the 90% confidence interval was (29.04, 33.04). The 90% CI implies that the population means of bill fall within the confidence interval, indicating that the population means were significant at 10%. Hence, one could point out that that it is likely that the population means the true value (Myers, Well, and Lorch, 2010). Also, there were significant mean differences in electricity bills between 2019 and 2020. The conclusion arrived at indicates that the average monthly electricity bill in a household during the Covid-19 pandemic is $5 greater than before the Covid-19 at 10%. Also, the change in the confidence interval to 99.99% and smaller sample size will lead to a wider confidence interval with a larger margin of error (Sheskin, 2010). The level of confidence also affects the interval width. Therefore, my conclusion was….....

Show More ⇣

     Open the full completed essay and source list


OR

     Order a one-of-a-kind custom essay on this topic


sample essay writing service

Cite This Resource:

Latest APA Format (6th edition)

Copy Reference
"Confidence Interval Statistics For Business" (2022, February 22) Retrieved May 22, 2025, from
https://www.aceyourpaper.com/essays/confidence-interval-business-2182611

Latest MLA Format (8th edition)

Copy Reference
"Confidence Interval Statistics For Business" 22 February 2022. Web.22 May. 2025. <
https://www.aceyourpaper.com/essays/confidence-interval-business-2182611>

Latest Chicago Format (16th edition)

Copy Reference
"Confidence Interval Statistics For Business", 22 February 2022, Accessed.22 May. 2025,
https://www.aceyourpaper.com/essays/confidence-interval-business-2182611
   

Open, View, and/or
Download this Document
order custom essay example