Hi Aubree,
We do not know whether this data is normally distributed, so we will use a t-confidence interval. The formula for that:
CI= x-bar +/- t*SE
Let's break that down:
x-bar=sample mean
t*=t critical value, obtained from t-table or statistical software
SE=standard error, which has its own formula as discussed below
For samples, we need to compute standard error. This is:
SE=s/sqrt(n) where:
s=standard deviation
n=sample size
Let's go ahead and calculate this for our problem
s=108
n=1500
SE=108/sqrt(1500)
SE=15.274
Now, looking back at our original equation for the confidence interval:
Ci=x-bar +/- t*SE,
we now have:
x-bar=1700
SE=15.274
We still need t*, the t-critical value. To compute this, we first need degrees of freedom. To calculate degrees of freedom, the formula is:
df=n-1
n=sample size
So:
n=50
df=n-1=49
Now, we need either a t-table or statistical software. If we use the t-table we have to look at the row closest to our degrees of freedom without going over and our alpha level. For a 99% confidence interval, assuming it is two-sided, we want alpha=0.005. This is (1-0.99)/2, so we control for both sides. You may want to memorize that alpha, since most confidence intervals in classroom practice--at least in my experience--are two-sided. You could also memorize 0.025 for 95 %, as this confidence level is also common.
Anyway, from t-table, closest df without going over is 40:
t*40=2.704
Finally, we have all values we need to compute the confidence interval:
CI=x-bar +/- t*SE
x-bar=1700
t*=2.704
SE=15.274
CI=1700 +/- (2.704-15.274)
Rounding to one decimal:
CI=1700 +/- 41.3
CI=(1658.7, 1741.3)
Lower Bound=1658.7
Upper Bound=1741.3
I hope this helps.