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    Chapter 8 Review

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    This chapter discusses confidence interval estimation. It introduces the estimation process and properties of point estimates. It then explains how to compute confidence intervals for the population mean when the standard deviation is both known and unknown. It also covers computing confidence intervals for the population proportion. Key factors that affect the width of confidence intervals are the data dispersion, sample size, and confidence level. Examples are provided for each type of confidence interval.

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    Chapter 8 Review

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    132 views6 pages
    This chapter discusses confidence interval estimation. It introduces the estimation process and properties of point estimates. It then explains how to compute confidence intervals for the population mean when the standard deviation is both known and unknown. It also covers computing confidence intervals for the population proportion. Key factors that affect the width of confidence intervals are the data dispersion, sample size, and confidence level. Examples are provided for each type of confidence interval.

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    This chapter discusses confidence interval estimation. It introduces the estimation process and properties of point estimates. It then explains how to compute confidence intervals for the population mean when the standard deviation is both known and unknown. It also covers computing confidence intervals for the population proportion. Key factors that affect the width of confidence intervals are the data dispersion, sample size, and confidence level. Examples are provided for each type of confidence interval.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    132 views6 pages

    Chapter 8 Review

    Uploaded by

    api-3829767
    This chapter discusses confidence interval estimation. It introduces the estimation process and properties of point estimates. It then explains how to compute confidence intervals for the population mean when the standard deviation is both known and unknown. It also covers computing confidence intervals for the population proportion. Key factors that affect the width of confidence intervals are the data dispersion, sample size, and confidence level. Examples are provided for each type of confidence interval.

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    Chapter 8

    Confidence Interval Estimation


    Chapter Topics

    • State Estimation Process


    • Introduce Properties of Point Estimates
    • Explain Confidence Interval Estimates
    • Compute Confidence Interval Estimation for Population Mean
    ( known and unknown)
    • Compute Confidence Interval Estimation for Population
    Proportion
    • Compute Sample Size
    Statistical Methods

    Statistical
    Methods

    Descriptive Inferential
    Statistics Statistics

    Hypothesis
    Estimation
    Testing
    Inference Process

    Estimates Population
    & Tests

    Sample
    Statistics
    X, Ps Sample

    Population Parameters Are Estimated with Point Estimator


    Estimate Population with Sample
    Parameter... Statistic
    Mean µ X
    Proportion p ps
    2
    Variance σ2 s
    Differences µ1 − µ2 X1 − X 2

    Confidence Interval Estimation Process

    I am 95%
    Population Random Sample confident
    that µ is
    Mean
    Mean, µ, is between
    unknown X = 50
    40 & 60.

    Confidence Interval Estimates


    Provide range of values
    – Takes into consideration variation in sample statistics from
    sample to sample
    – Is based on observation from one sample
    – Gives information about closeness to unknown population
    parameters
    – Is stated in terms of level of confidence
    Never 100% certain
    Elements of Confidence Interval Estimation

    A Probability That the Population Parameter


    Falls Somewhere Within the Interval.
    Sample
    Confidence Interval Statistic

    Confidence Confidence
    Limit (Lower) Limit (Upper)
    Confidence Intervals

    X ± Z ⋅σ X = X ± Z ⋅ σ
    n
    σx_

    X
    µ − 2.58⋅σ X µ −1.645⋅σ X µ µ +1.645⋅σ X µ + 2.58⋅σ X
    µ −1.96⋅σ X µ +1.96⋅σ X
    90% Samples
    95% Samples
    99% Samples
    Level of Confidence
    • Probability that the unknown population parameter falls within
    the interval
    • Denoted (1 - =% )α level of confidence
    α Is Probability That the Parameter Is Not Within the Interval
    • The typical values are 99%, 95%, 90%. Corresponding Z values
    are 2.58, 1.96, 1.645 (for two side problems).
    Experiment: throw 2 dice, use mean ±2 to construct a 94.5%
    confidence interval estimate for µ.
    Interval and Level of Confidence

    Sampling Distribution of the Mean


    σX
    µ − Zα / 2σ X α /2 µ + Zα / 2σ X
    1−α α /2

    Intervals X
    extend from µX = µ
    ( 1 − α ) 100%
    X − Zσ X of intervals
    constructed
    to contain µ ; α
    X + Zσ X 100% do not.

    Confidence Intervals
    Factors Affecting Interval Width
    1. Data Dispersion
    Measured by σ
    2. Sample Size

    X  / n
    3. Level of Confidence (1 - α)
    Affects Z

    Confidence Interval Estimates

    Confidence
    Intervals

    Mean Proportion

    σ Known σ Unknown

    Confidence Interval Estimate For Mean (σ Known)


    Assumptions
    – Population standard deviation (σ) is known
    – Population is normally distributed
    – If not normal, can be approximated by normal distribution
    (n ≥ 30)
    Confidence Interval Estimate

    σ σ
    X − Zα / 2 ⋅ ≤ µ ≤ X + Zα / 2 ⋅
    n n
    Example :
    Population is normally distributed with σ = 10. The mean of a random
    sample of n = 25 is X = 50. Set up a 95% confidence interval estimate
    for µ.

    X − Zα ⋅ σ ≤ µ ≤ X + Zα ⋅ σ
    2 n 2 n

    50−1.96⋅ 10 ≤ µ ≤ 50+1.96⋅ 10
    25 25
    46.08 ≤ µ ≤ 53.92
    Confidence Interval Estimate Mean (σ Unknown)
    Assumptions
    Population Standard Deviation (σ) Is Unknown
    Population Must Be Normally Distributed
    Use Student’s t Distribution
    Confidence Interval Estimate:

    S S
    X − t α / 2, n −1 ⋅ ≤ µ ≤ X + t α / 2, n −1 ⋅
    n n

    Student’s t Table
    Assume: n = 3
    α/2 df = n - 1 = 2
    Upper Tail Area α = .10
    df .25 .10 α/2 =.05
    .05
    1 1.000 3.078 6.314

    2 0.817 1.886 2.920 α/2 =.05

    3 0.765 1.638 2.353


    0 2.920 t
    t Values
    Confidence Interval Estimate for Proportion
    Assumptions
    Two categorical outcomes
    Population follows binomial distribution
    Normal approximation can be used if
    n·p ≥ 5 and n·(1 - p) ≥ 5
    Confidence interval estimate:

    pS ( 1 − pS ) pS ( 1 − pS )
    p S − Zα / 2 ≤ p ≤ pS + Zα / 2
    n n
    Example:
    A random sample of 400 voters showed 32 preferred candidate A. Set
    up a 95% confidence interval estimate for p.
    Ps = 32/400 = .08
    ps ⋅ (1 − ps ) ps ⋅ (1 − ps )
    ps − Z α / 2 ⋅ ≤ p ≤ ps + Z α / 2 ⋅
    n n
    .08 ⋅ (1−.08 ) .08 ⋅ (1−.08)
    .08 − 196
    . ⋅ ≤ p ≤ .08 + 196
    . ⋅
    400 400
    .053 ≤ p ≤ .107

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