Scribd
Upload
9 views4 pages

CH8. Confidence Intervals

This document provides information about confidence intervals. It defines a confidence interval as an estimate of an unknown parameter that consists of a range of values and an associated probability that the interval contains the true parameter. It discusses factors that influence the construction of confidence intervals such as the point estimate, confidence level, and standard deviation. It also introduces the t-distribution, a similar but heavier tailed distribution compared to the normal distribution that is used for confidence intervals when the sample size is small. Properties of the t-distribution and an example of calculating a confidence interval using the t-distribution are provided.

Uploaded by

Hazell D
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
9 views4 pages

CH8. Confidence Intervals

This document provides information about confidence intervals. It defines a confidence interval as an estimate of an unknown parameter that consists of a range of values and an associated probability that the interval contains the true parameter. It discusses factors that influence the construction of confidence intervals such as the point estimate, confidence level, and standard deviation. It also introduces the t-distribution, a similar but heavier tailed distribution compared to the normal distribution that is used for confidence intervals when the sample size is small. Properties of the t-distribution and an example of calculating a confidence interval using the t-distribution are provided.

Uploaded by

Hazell D
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

8/18/2020

Confidence Interval
CHAPTER 6
CONFIDENCE
It is an estimate of a parameter
consists of an interval of numbers
along with a probability that the
INTERVAL interval contains the unknown
parameter

Level of Confidence Factors in constructing


in a Confidence Interval Confidence Interval
◎ The point estimate of the population
It is a probability that represents ◎ The level of confidence
the percentage of intervals that ◎ The standard deviation of the sample
will contain if a large number of mean
repeated samples are obtained.

3 4

1
8/18/2020

5 6

Student’s t-distribution Properties of t-distribution


It is a type of probability distribution that 1. The t distribution is different for
is similar to the normal distribution with different values of n, the sample size.
its bell shape but has heavier tails. 2. The t distribution is centered at 0 and
is symmetric about 0.
3. The area under the curve is 1.

7 8

2
8/18/2020

Properties of t-distribution Formula for t-distribution


4. As t increases without bound, the
graph approaches, but never equals,
zero. As t decreases without bound
the graph approaches, but never
equals, zero.

9 10

Example: Solution:
Acme Corporation manufactures light bulbs. The CEO t = [ x - μ ] / [ s / sqrt( n ) ]
claims that an average Acme light bulb lasts 300 days. A t = ( 290 - 300 ) / [ 50 / sqrt( 15) ]
researcher randomly selects 15 bulbs for testing. The t = -10 / 12.909945
sampled bulbs last an average of 290 days, with a
t = - 0.7745966
standard deviation of 50 days. If the CEO's claim were
true, what is the probability that 15 randomly selected
bulbs would have an average life of no more than 290 P = 0.226 or 22.6%
days?
11 12

3
8/18/2020

THANK YOU!

You might also like