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Sample
2 2
Variance s
_ _
Difference - x - x
1 2 1 2
X Error
Z
X X
Error Z x
X Z X
1 . 96 x 1 . 96 x
95% Samples
2 .58 x 2 .58 x
99% Samples
© 1999 Prentice-Hall, Inc. Chap. 7 - 8
Level of Confidence is an
EXPECTED RELATIONSHIP
• Probability that the unknown population
parameter is in the confidence interval in 100
trials.
• Denoted (1 - ) % = level of confidence
e.g. 90%, 95%, 99%
Confidence
Intervals
Mean Proportion
Finite
Known Population
X Z / 2 X Z / 2
n n
Confidence
Intervals
Mean Proportion
Finite
Known Population
• Assumptions
Population Standard Deviation Is Unknown
Sample size must be large enough for central
limit theorem or Population Must Be
Normally Distributed
• Use Student’s t Distribution
•
Confidence Interval Estimate
S X t S
X t / 2 ,n1 / 2 ,n1
n n
© 1999 Prentice-Hall, Inc. Chap. 7 - 15
Student’s t Distribution
Standard
Normal
Z
t
0
© 1999 Prentice-Hall, Inc. Chap. 7 - 16
Degrees of Freedom (df)
/2 Assume: n = 3 df
=n-1=2
Upper Tail Area
= .10
df .25 .10 .05 /2 =.05
46 . 69 53 . 30
© 1999 Prentice-Hall, Inc. Chap. 7 - 19
Confidence Interval Estimates
Confidence
Intervals
Mean Proportion
Finite
Known Population
ps Z / 2
ps ( 1 ps ) p ps Z / 2 ps ( 1 ps )
n n
.08( 1 .08 ) p .08 1.96 .08( 1 .08 )
.08 1.96
400 400
.053 p .107
© 1999 Prentice-Hall, Inc. Chap. 7 - 22
Sample Size
228
Round Up
© 1999 Prentice-Hall, Inc. Chap. 7 - 26
Chapter Summary
•Discussed Confidence Interval Estimation for
the Mean (Known)
•Discussed Confidence Interval Estimation for
the Mean (Unknown)
•Addressed Confidence Interval Estimation for
the Proportion
•Determined Sample Size