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Statistical Inference and Confidence Intervals

1. There are two main types of statistical inference: confidence intervals and tests of hypotheses. Confidence intervals provide a range of values that is likely to contain the true population parameter, while hypothesis tests analyze sample data to evaluate claims about population parameters. 2. There are three common situations for constructing confidence intervals: when the population standard deviation is known, when it is unknown, and for proportions. The formulas vary depending on whether the standard deviation or sample size is known. 3. Examples demonstrate how to calculate confidence intervals in each situation. For a sample mean where the standard deviation is known, the confidence interval is the mean plus or minus the margin of error. When the standard deviation is unknown, the t-distribution

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12 views1 page

Statistical Inference and Confidence Intervals

1. There are two main types of statistical inference: confidence intervals and tests of hypotheses. Confidence intervals provide a range of values that is likely to contain the true population parameter, while hypothesis tests analyze sample data to evaluate claims about population parameters. 2. There are three common situations for constructing confidence intervals: when the population standard deviation is known, when it is unknown, and for proportions. The formulas vary depending on whether the standard deviation or sample size is known. 3. Examples demonstrate how to calculate confidence intervals in each situation. For a sample mean where the standard deviation is known, the confidence interval is the mean plus or minus the margin of error. When the standard deviation is unknown, the t-distribution

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Chapter 6: Statistical Inference

Inferences:
1. Confidence Interval: Point Estimator ± Margin of Error
2. Test of Hypothesis: Ho: guessing population value and use sample info to test it
Confidence Intervals:
Situation One: µ: Standard Deviation known alpha=size of error 1-alpha=Level of Confid.
𝜎
Formula: 𝑥 ± 𝑧𝛼 ∗ we can use [Link](alpha, st. dev, n)
2 √𝑛
𝑠
Situation Two: µ: Standard deviation UNKNOWN! Formula: 𝑥 ± 𝑡𝛼 ∗ Excel: x-bar ± CONFIDENCE.T(alpha, s, n)
2 √𝑛
√𝑝(1−𝑝)
Situation Three: Proportions 𝑝 ± 𝑧𝛼 ∗
2 𝑛
Interpreting: In repeated sampling, 95% of the intervals will include the true µ. We are hoping our interval contains the actual µ.

Example 1: St. Dev known


N=40 3.2 ± z(.05/2) * .5/sqrt(40)
x-bar=3.2 3.2 ± {.15495 } ME For ME use [Link]([Link])
st. dev=.5 CI: (3.045,3.355)
alpha=.05

Example 2: St. Dev Unknown


N=40 3.2 ± t.(.05/2) * .8/sqrt(40)
x-bar=3.2 CONFIDENCE.T(.05,.8,40)
s=.8 CI: (2.95,3.46)
alpha= .05

Example 3: Proportions
N=40 females are 25 out of 40 students so p-bar=25/40 alpha:.05
Therefore 0.625 ± 1.96 * sqrt(.625 * (1-.0625) / 40 = CI of (-0.15, .76)
Ho is true Ho is false

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