In 2018, Mike Krzyewski and John Calipari topped the list of highest paid college basketball coaches (Sports Illustrated website). The following sample shows the head basketball coach's salary for a sample of 10 schools playing NCAA Division I basketball. Salary data are in millions of dollars. University Coach's Salary University Coach's Salary
North Carolina State 2.2 Miami (FL) 1.5
Iona 0.5 Creighton 1.3
Texas A&M 2.4 Texas Tech 1.5
Oregon 2.7 South Dakota State 0.3
Iowa State 2.0 New Mexico State 0.3
a. Use the sample mean for the 10 schools to estimate the population mean annual salary for head basketball coaches at colleges and universities playing NCAA Division I basketball.
b. Use the data to estimate the population standard deviation for the annual salary for head basketball coaches.
c. What is the 95% confidence interval for the population variance?
d. What is the 95% confidence interval for the population standard deviation?

From the data given, we estimate the population mean and population standard deviation. Then, we use this estimate to find a 95% confidence interval for the population variance and the population standard deviation.

Sample:

Salaries in millions of dollars: 2.2, 1.5, 0.5, 1.3, 2.4, 1.5, 2.7, 0.3, 2.0, 0.3

Question a:

The mean is the sum of all values divided by the number of values. So

The sample mean salary is of 1.42 million.

Question b:

The standard deviation is the square root of the difference squared between each value and the mean, divided by one less than the number of values.

So

Thus, the estimate for the population standard deviation is of 0.8772 million.

Question c:

The sample size is

The significance level is

The estimate, which is the sample standard deviation, is of .

Now, we have to find the critical values for the Pearson distribution. They are:

The confidence interval for the population variance is:

Thus, the 95% confidence interval for the population variance is (0.3641, 2.5646)

Question d:

Standard deviation is the square root of variance, so:

The 95% confidence interval for the population standard deviation is (0.6034, 1.6014).

For more on confidence intervals for population mean/standard deviation, you can check