A large sample of 40 units has a mean 5.22 and a standard deviation σ of 2.31
Another large sample of 40 related units has a mean 4.44 and a standard deviation σ of 1.74
Construct a 90% confidence interval for the difference between the means μ
1 - μ
2 Confidence Interval Formula for μ1 - μ2 is as follows:(
x1 -
x2) - zscore
α x √
a < μ
1 - μ
2 < (
x1 -
x2) + zscore
α x √
a where:
x1 = sample mean 1,
x2 = sample mean 2, s = sample standard deviation, zscore = Normal distribution Z-score from a probability where α = (1 - Confidence Percentage)/2
and a is denoted below
Calculate α: α = 1 - Confidence%
α = 1 - 0.9
α = 0.45726633377059
Find α spread range: α = ½(α)
α = ½(0.45726633377059)
α = 0.05
Find z-score for α value for 0.05
zscore
0.05 = 1.645 <--- Value can be found on Excel using =NORMSINV(0.95)
Calculate a:
a = √
0.1334025 + 0.07569a = √
0.2090925a = 0.45726633377059
Calculate high end confidence interval total: High End = (
x1 -
x2) + zscore
α x √
aHigh End = (5.22 - 4.44) + 1.645 x 0.45726633377059
High End = 0.78 + 0.75220311905263
High End = 1.5322
Calculate low end confidence interval total:Low End = (
x1 -
x2) - zscore
α x √
aLow End = (5.22 - 4.44) - 1.645 x 0.45726633377059
Low End = 0.78 - 0.75220311905263
Low End = 0.0278
Now we have everything, display our 90% confidence interval:0.0278 < μ1 - μ2 < 1.5322What this means is if we repeated experiments, the proportion of such intervals that contain μ
1 - μ
2 would be 90%