Answer:
a) The 99% confidence interval for the true mean milk production is (26.35 kg/d, 29.65 kg/d).
b) They would need to use a confidence level of 94.52%.
Step-by-step explanation:
a)
We have that to find our
level, that is the subtraction of 1 by the confidence interval divided by 2. So:
![\alpha = \frac{1-0.99}{2} = 0.005](https://tex.z-dn.net/?f=%5Calpha%20%3D%20%5Cfrac%7B1-0.99%7D%7B2%7D%20%3D%200.005)
Now, we have to find z in the Ztable as such z has a pvalue of
.
So it is z with a pvalue of
, so ![z = 2.575](https://tex.z-dn.net/?f=z%20%3D%202.575)
Now, find M as such
![M = z*\frac{\sigma}{\sqrt{n}}](https://tex.z-dn.net/?f=M%20%3D%20z%2A%5Cfrac%7B%5Csigma%7D%7B%5Csqrt%7Bn%7D%7D)
In which
is the standard deviation of the population and n is the size of the sample. So
![M = 2.575*\frac{2.25}{\sqrt{12}} = 1.65](https://tex.z-dn.net/?f=M%20%3D%202.575%2A%5Cfrac%7B2.25%7D%7B%5Csqrt%7B12%7D%7D%20%3D%201.65)
The lower end of the interval is the mean subtracted by M. So it is 28-1.65 = 26.35 kg/d
The upper end of the interval is the mean added to M. So it is 28 + 1.65 = 29.65 kg/d.
The 99% confidence interval for the true mean milk production is (26.35 kg/d, 29.65 kg/d).
(b) If the farms want the confidence interval to be no wider than 1.25 kg/d, what level of confidence would they need to use?
Now we want to find the value of z when M = 1.25. So:
![1.25 = z*\frac{2.25}{\sqrt{12}}](https://tex.z-dn.net/?f=1.25%20%3D%20z%2A%5Cfrac%7B2.25%7D%7B%5Csqrt%7B12%7D%7D)
![0.6495z = 1.25](https://tex.z-dn.net/?f=0.6495z%20%3D%201.25)
, that has a pvalue of 0.9726.
So the confidence level should be 1 - 2*(1-0.9726) = 0.9452
They would need to use a confidence level of 94.52%.