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STA1510 Chapter 8 Summary

This document discusses methods for constructing confidence intervals to estimate population parameters when sampling statistics like the mean, proportion, and standard deviation are known or unknown. It provides the formulas for constructing confidence intervals for the mean when the standard deviation is known or unknown, and for estimating a proportion. Examples are given to demonstrate calculating 95% and 90% confidence intervals for the mean and proportion based on sample data provided.

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86 views3 pages

STA1510 Chapter 8 Summary

This document discusses methods for constructing confidence intervals to estimate population parameters when sampling statistics like the mean, proportion, and standard deviation are known or unknown. It provides the formulas for constructing confidence intervals for the mean when the standard deviation is known or unknown, and for estimating a proportion. Examples are given to demonstrate calculating 95% and 90% confidence intervals for the mean and proportion based on sample data provided.

Uploaded by

Leigh Makan
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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A CONFIDENCE INTERVAL ESTIMATION

Confidence interval estimation for the mean 𝜇


When 𝜎 is known
 Use a normal distribution.
𝜎
 Then the confidence interval is given by: 𝑋̅ ± 𝑍𝛼 × ( ) . or
2 √𝑛
𝜎 𝜎
[𝑋̅ − 𝑍𝛼 × ( ) , 𝑋̅ + 𝑍𝛼 × ( )]
2 √𝑛 2 √𝑛

[ Lower limit , Upper limit ]

When 𝜎 is unknown (we estimate 𝜎 by 𝑆)


 Use a student’s t distribution with 𝑛 − 1 degrees of freedom.
𝑆
 Then the confidence interval is given by: 𝑋̅ ± 𝑡𝑛−1,𝛼 × ( ) . or
2 √𝑛

𝑆 𝑆
[𝑋̅ − 𝑡𝑛−1,𝛼 × ( ) , 𝑋̅ + 𝑡𝑛−1,𝛼 × ( )]
2 √𝑛 2 √𝑛

[ Lower limit , Upper limit ]

Confidence interval estimation for proportion 𝜋


 Always use a normal distribution.
𝑝(1−𝑝)
 Then the confidence interval is given by: 𝑝 ± 𝑍𝛼 × √ . or
2 𝑛

𝑝(1−𝑝) 𝑝(1−𝑝)
[𝑝 − 𝑍𝛼 × √ , 𝑝 + 𝑍𝛼 × √ ]
2 𝑛 2 𝑛

[ Lower limit , Upper limit ]


Example:
A random sample of size 45 and mean of 14 drawn from a normally
distributed population with standard deviation 𝜎 = 1.2. Calculate the
95% confidence interval for the population mean.
Solution:
In this case 𝜎 is known. 𝑋̅ = 14, 𝜎 = 1.2, 𝑛 = 45 and 𝑍𝛼 = 𝑍0.05 = 1.96
2 2

𝑍𝛼 = 𝑍0.05 = 𝑍0.025 = 1.96


2 2

𝜎
Therefore 𝑋̅ ± 𝑍𝛼 × ( )
2 √𝑛
1.2
= 14 ± 1.96 × ( )
√45

= (13.6494; 14.3506)

Example:
The Sugar Producers Association wants to estimate the mean yearly
sugar consumption. A sample of 16 people reveals a mean yearly
consumption to be 27.24kg with a standard deviation of 9.08kg.
Calculate the 90% confidence interval for the population mean.
Solution:
In this case 𝜎 is unknown. 𝑋̅ = 27.24, 𝑆 = 9.08, 𝑛 = 16 and
𝑡𝑛−1,𝛼 = 𝑡16−1,0.1 = 𝑡15,0.05 = 1.7531
2 2

𝑆
Therefore 𝑋̅ ± 𝑡𝑛−1,𝛼 × ( )
2 √𝑛
9.08
= 27.24 ± 1.7531 × ( )
√16

= (23.2604; 31.2195)
Example:
A university dean is interested in determining the proportion of students
who receive some sort of financial assistance. Rather than examine the
records of all students, the dean randomly select 200 students and finds
that 118 of them are receiving financial assistance. Use 90% confidence
interval to estimate the true proportion of students who receive financial
assistance.
𝑥 118
Solution: 𝑝= = = 0.59 and 𝑍𝛼 = 𝑍0.1 = 𝑍0.05 = 1.645
𝑛 200 2 2

0.59(1−0.59)
0.59 ± 1.645 × √
200

(0.5328; 0.6472)

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