Hi Chad,
Since you know the population standard deviation (2 cm.), you can use a z-confidence interval and zcv:
CI = xbar +/- z* (sigma/sqrt(n))
xbar= sample mean = 12
z* = z-critical value for 90% confidence = 1.645
sigma= pop. standard deviation = 2
n = sample size = 12
CI = 12 +/- (1.645*(2/sqrt(12))
CI = (11.05, 12.95)
Error (E) = z*(sigma/sqrt(n) = 1.645(2/sqrt(12)) = 0.95
You might want to memorize these z-critical values as they come up frequently:
z90% = 1.645
z95% = 1.96
z99% = 2.576
I hope this helps.