Scribd
Upload
12 views29 pages

Understanding Confidence Interval Estimates

Statpro reviewer

Uploaded by

deckjamesalivio10
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
12 views29 pages

Understanding Confidence Interval Estimates

Statpro reviewer

Uploaded by

deckjamesalivio10
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 29

Confidence Interval

Identifying the Appropriate Form of


the Confidence Interval Estimator
for the Population Mean when the
Population Variance or Population
Standard Deviation is Known
Objective
At the end of the lesson, you are expected to:
• Define confidence level
• Define confidence interval
• Apply the normal curve concepts in computing the interval
estimate
• Compute confidence interval estimates
Review
• Point Estimate
• Normal Distribution
• z-table
• z-score Formula
• Central Limit Theorem
Interval Estimate
When we describe population values, we want to be
confident about our estimates. Other than the point
estimate, we can use a range of values. This range of
values is called interval estimate.
Interval Estimate
An interval estimate, called a confidence interval, is a
range of values that is used to estimate a parameter.
This estimate may or may not contain the true
parameter value.

Example: The age of a beginning grade 1 pupil is any


value between 6 years and 7 years.
Interval Estimate
In determining an interval estimate, a degree of
confidence ( expressed as percentage such as 95%)
that the interval contains the true and fixed parameter
is made.

The confidence level of an interval estimate of a


parameter is the probability that the interval estimate
contains the parameter.
Interval Estimate
Three commonly used confidence intervals based on
confidence levels:
• 90%
• 95%
• 99%
Standard normal distribution
z = -1 to z = 1, area:
approximately 68%

z = -1.96 to z = 1.96,
area: approximately
95%
z = -2.58 to z = 2.58,
area: approximately
-3 -2 -1 0 1 2 3 99%

z values are called


confidence coefficients
Interval Estimate Formula:
95% Probability that the interval contains the population
mean:
𝜎 𝜎
𝑋ത − 1.96 < 𝜇 < 𝑋ത + 1.96
𝑛 𝑛
Class Activity : Volume of Juice prepared by Mam Malen.
500 498 497 503 499 497 497 497 497 495
500 500 495 494 498 500 500 500 500 497
497 497 502 496 497 497 497 497 497 495
501 495 500 497 497 500 500 495 497 497
502 497 497 499 496 497 497 499 500 500
496 497 496 495 497 497 500 500 496 497

Suppose I took the first row as a sample, what is the interval


estimate, which will contain 𝜇 at 95% confidence level, 𝜎 = 2.01.
General Formula:
𝜎 𝜎
𝑋ത − 𝑧𝛼/2 < 𝜇 < 𝑋ത + 𝑧𝛼/2
𝑛 𝑛
Standard Error Standard Error

𝑧𝛼/2 = 1.65 𝑓𝑜𝑟 90% 𝑐𝑜𝑛𝑓𝑖𝑑𝑒𝑛𝑐𝑒 𝑖𝑛𝑡𝑒𝑟𝑣𝑎𝑙

𝑧𝛼/2 = 1.96 𝑓𝑜𝑟 95% 𝑐𝑜𝑛𝑓𝑖𝑑𝑒𝑛𝑐𝑒 𝑖𝑛𝑡𝑒𝑟𝑣𝑎𝑙

𝑧𝛼/2 = 2.58 𝑓𝑜𝑟 99% 𝑐𝑜𝑛𝑓𝑖𝑑𝑒𝑛𝑐𝑒 𝑖𝑛𝑡𝑒𝑟𝑣𝑎𝑙


Length of Confidence Interval:
L = UL(Upper Limit) – LL (Lower Limit)

𝜎 𝜎
L = 𝑋ത + 𝑧𝛼 − 𝑋ത − 𝑧𝛼
2 𝑛 2 𝑛

Upper Limit Lower Limit


Example:
A researcher wants to estimate the number of hours that
5-year old children spend watching television. A sample of
50 five-year old children was observed to have a mean
viewing time of 3 hours. The population is normally
distributed with a population standard deviation = 0.5
hours, find:
a) Find the 95% confidence interval of the population
mean
b) What is the length of the confidence interval?
Solution for a:
𝜎 𝜎
𝑋ത − 1.96 < 𝜇 < 𝑋ത + 1.96
𝑛 𝑛
0.5 0.5
3 − 1.96 < 𝜇 < 3 + 1.96
50 50
Answer: 2.86 < 𝜇 < 3.14
Solution for b: Length of confidence interval
𝜎 𝜎
𝐿 = 𝑋ത + 1.96 − 𝑋ത − 1.96
𝑛 𝑛
0.5 0.5
𝐿 = 3 + 1.96 − 3 − 1.96
50 50

𝐿 = 3.14 − 2.86

Answer: 𝐿 = 0.28
Example 2:
A random selection of 40 entering Mathematics majors
has the following GPAs. Assume that 𝜎 = 0.46.

4.0 3.5 3.0 3.3 3.8 3.1 3.6 4.0 3.9 3.5
3.2 3.0 3.5 3.2 3.0 3.2 4.0 3.0 3.4 3.0
3.0 2.8 5.6 3.0 3.2 3.5 3.2 2.8 3.3 3.1
3.2 2.9 3.0 2.8 4.0 3.7 3.0 3.3 3.2 2.8

a) Find the 95% confidence interval


b) Determine 90% confidence interval
Identifying the Appropriate Form of
the Confidence Interval Estimator for
the Population Mean when the
Population Variance or Population
Standard Deviation is Unknown
Population Variance/ Population Standard Dev is Unknown
Population Variance/ Population Standard Dev is Unknown
𝑠 𝑠
𝑥ҧ − 𝑡𝛼/2 < 𝜇 < 𝑥ҧ + 𝑡𝛼/2
𝑛 𝑛

𝑠 is the sample standard deviation


n is the sample size with degrees of freedom df = n – 1
Study Hard. Pray Harder!

You might also like