1. **State the problem:** We want to find the 90% and 95% confidence intervals for the average weekly sales of a brand of soap based on a sample of 13 weeks: 123, 110, 95, 120, 87, 89, 100, 105, 98, 88, 75, 125, 101.
2. **Formula for confidence interval:**
The confidence interval for the mean when the population standard deviation is unknown and sample size is small is given by:
$$\bar{x} \pm t_{\alpha/2, n-1} \times \frac{s}{\sqrt{n}}$$
where:
- $\bar{x}$ is the sample mean
- $s$ is the sample standard deviation
- $n$ is the sample size
- $t_{\alpha/2, n-1}$ is the t-score from the t-distribution with $n-1$ degrees of freedom
3. **Calculate the sample mean $\bar{x}$:**
$$\bar{x} = \frac{123 + 110 + 95 + 120 + 87 + 89 + 100 + 105 + 98 + 88 + 75 + 125 + 101}{13}$$
$$\bar{x} = \frac{1316}{13} = 101.23$$
4. **Calculate the sample standard deviation $s$:**
First, find each squared deviation from the mean, sum them, then divide by $n-1=12$, and take the square root.
Sum of squared deviations:
$$(123-101.23)^2 + (110-101.23)^2 + \cdots + (101-101.23)^2 = 2381.69$$
Sample variance:
$$s^2 = \frac{2381.69}{12} = 198.47$$
Sample standard deviation:
$$s = \sqrt{198.47} = 14.09$$
5. **Find t-scores for 90% and 95% confidence intervals with 12 degrees of freedom:**
- For 90% confidence, $t_{0.05,12} = 1.782$
- For 95% confidence, $t_{0.025,12} = 2.179$
6. **Calculate margin of error for each confidence level:**
$$ME_{90} = 1.782 \times \frac{14.09}{\sqrt{13}} = 1.782 \times 3.91 = 6.97$$
$$ME_{95} = 2.179 \times \frac{14.09}{\sqrt{13}} = 2.179 \times 3.91 = 8.52$$
7. **Construct confidence intervals:**
- 90% CI:
$$101.23 \pm 6.97 = (94.26, 108.20)$$
- 95% CI:
$$101.23 \pm 8.52 = (92.71, 109.75)$$
**Final answer:**
- 90% confidence interval for average weekly sales is **(94.26, 108.20)**
- 95% confidence interval for average weekly sales is **(92.71, 109.75)**
Confidence Interval 622E9F
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