Exhibit 8-1
In order to estimate the average time spent on the computer terminals per student at a local university, data were collected from a sample of 81 business students over a one-week period. Assume the population standard deviation is 1.2 hours.
-Refer to Exhibit 8-1. With a 0.95 probability, the margin of error is approximately
A)0.26
B)1.96
C)0.21
D)1.64

Question

Quizplus · Accepted Answer

The margin of error is calculated as:Margin of error = z * (standard deviation / square root of sample size)where z is the z-score corresponding to the desired confidence level. For a 0.95 confidence level, z = 1.96.Plugging in the values, we get:Margin of error = 1.96 * (1.2 / square root of 81) = 0.26 hoursTherefore, the margin of error is approximately 0.26 hours.

Exhibit 8-1 in Order to Estimate the Average Time Spent on the on the Computer