Chapter 6

Confidence Intervals

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 Chapter Outline
• 6.1 Confidence Intervals for the Mean ( Known)
• 6.2 Confidence Intervals for the Mean ( Unknown)
• 6.3 Confidence Intervals for Population Proportions
• 6.4 Confidence Intervals for Variance and Standard

Deviation

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 Section 6.2

Confidence Intervals for the Mean

( Unknown)

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 Section 6.2 Objectives
• How to interpret the t-distribution and use a t-
distribution table
• How to construct and interpret confidence intervals
for a population mean when  is not known

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 The t-Distribution
• When the population standard deviation is unknown,
the sample size is less than 30, and the random
variable x is approximately normally distributed, it
follows a t-distribution.
x -
t
s
n
• Critical values of t are denoted by tc.

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 Properties of the t-
Distribution
1. The mean, median, and mode of the t-distribution
are equal to 0.
2. The t-distribution is bell shaped and symmetric
about the mean.
3. The total area under a t-curve is 1.
4. The tails in the t-distribution are “thicker” than those
in the standard normal distribution.
5. The standard deviation of the t-distribution varies
with the sample size, but it is greater than 1.

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 Properties of the t-
Distribution
6. The t-distribution is a family of curves, each
determined by a parameter called the degrees of
freedom. The degrees of freedom are the number
of free choices left after a sample statistic such as
is calculated. When you use a t-distribution to
estimate a population mean, the degrees of freedom
are equal to one less than the sample size.
• d.f. = n – 1 Degrees of freedom

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 Properties of the t-
Distribution
7. As the degrees of freedom increase, the t-distribution
approaches the normal distribution. For 30 or more
degrees of freedom, the t-distribution is close to the
standard normal distribution.

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 Example: Finding Critical
Values of t
Find the critical value tc for a 95% confidence when the
sample size is 15.
Solution:
Because n = 15, the degrees of freedom are d.f. = n – 1 = 15 – 1 =
14. A portion of Table 5 is shown. Using d.f. = 14 and c = 0.95,
you can find the
critical value tc,
as shown by the
highlighted
areas in the table.

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 Solution: Critical Values of t
From the table, you can see that tc = 2.145. The figure
shows the t-distribution for 14 degrees of freedom,
c = 0.95, and tc = 2.145.

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 Solution: Critical Values of t
You can use technology to find tc. To use a TI-84 Plus,
you need to know the area under the curve to the left of
tc, which is
0.95 + 0.025 = 0.975. Area to the left of tc
From the TI-84 Plus display, tc 2.145.

So, for a t-distribution curve with 14

degrees of freedom, 95% of the area
under the curve lies between t = 2.145.

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Constructing a Confidence Interval
for a Population Mean ( Unknown)
In Words In Symbols
1. Verify that  is not known,
the sample is random, and
the population is normally
distributed or n  30.

2. Find the sample x (x  x ) 2

x s
n n 1
statistics n, x , and s.

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Constructing a Confidence Interval
for a Population Mean ( Unknown)
In Words In Symbols
3. Identify the degrees of d.f. = n – 1;
freedom, the level of Use Table 5 in
confidence c, and the Appendix B.
critical value tc.
s
4. Find the margin of error E. E  tc
n
5. Find the left and right Left endpoint: x  E
endpoints and form the Right endpoint: x  E
confidence interval. Interval: x  E    x  E
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 Example: Constructing a
Confidence Interval
You randomly select 16 coffee shops and measure the
temperature of the coffee sold at each. The sample mean
temperature is 162.0ºF with a sample standard deviation
of 10.0ºF. Construct a 95% confidence interval for the
population mean temperature of coffee sold. Assume the
temperatures are approximately normally distributed.

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 Solution: Constructing a
Confidence Interval
Because σ is unknown, the sample is random, and the
temperatures are approximately normally distributed,
use the t-distribution. Using n = 16, = 162.0, s = 10.0, c
= 0.95, and d.f. = 15, you can use Table 5 to find that tc
= 2.131.

The margin of error at the 95% confidence level is

s 10
E  tc  2.131   5.3
n 16

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 Solution: Constructing a
Confidence Interval
• Confidence interval:
Left Endpoint: Right Endpoint:
xE xE
 162  5.3  162  5.3
 156.7  167.3
156.7 < μ < 167.3

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 Solution: Constructing a
Confidence Interval
• 156.7 < μ < 167.3

With 95% confidence, you can say that the mean

temperature of coffee sold is between 156.7ºF and
167.3ºF.

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 Example: Constructing a
Confidence Interval
You randomly select 36 cars of the same model that
were sold at a car dealership and determine the number
of days each car sat on the dealership’s lot before it was
sold. The sample mean is 9.75 days, with a sample
standard deviation of 2.39 days. Construct a 99%
confidence interval for the population mean number of
days the car model sits on the dealership’s lot.

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 Solution: Constructing a
Confidence Interval
Solution
Because  is unknown, the sample is random, and
n = 36  30, use the t-distribution. Using n = 36,
= 9.75, s = 2.39, c = 0.99, and d.f. = 35, you can use
Table 5 to find that tc = 2.724. The margin of error at the
99% confidence level is
E = tc = 2.724 1.09.

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 Solution: Constructing a
Confidence Interval
Solution
The confidence interval is constructed as shown.
Left Endpoint Right Endpoint
– E 9.75 – 1.09 + E 9.75 + 1.09
= 8.66 = 10.84
8.66 <  < 10.84

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 Solution: Constructing a
Confidence Interval
Solution
You can check this answer using technology.

With 99% confidence, you can say that the population mean
number of days the car model sits on the dealership’s lot is
between 8.66 and 10.84.
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 Normal or t-Distribution?

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 Example: Normal or t-
Distribution?
You randomly select 25 newly constructed houses. The
sample mean construction cost is $181,000 and the
population standard deviation is $28,000. Assuming
construction costs are normally distributed, should you
use the normal distribution, the t-distribution, or neither
to construct a 95% confidence interval for the
population mean construction cost? Explain your
reasoning.

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 Solution: Normal or t-
Distribution?
Solution
Is the population normally distributed or is n  30?
Yes, the population is normally distributed. Note that
even though n = 25 < 30 you can still use either the
standard normal distribution or the t-distribution
because the population is normally distributed.
Is known?
Yes.
Decision:
Use the standard normal distribution.
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