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Statistics UNIT 7 CONFIDENCE INTERVALS Notes 7.

.1 Confidence Intervals for the Mean when is Known and Sample Size Suppose a college professor wanted to estimate the average age of the students attending classes this semester. How could this be found? Point Estimate a specific numerical value estimate of a parameter. The best point extimate of the population mean is the sample mean x . Sample measures are used to estimate population measures (parameters). These statistics are called estimators. Confidence Intervals An interval estimate of a parameter is a range of values used to estimate the parameter. A confidence interval is a specific interval estimate of a parameter determined by using data obtained from a sample and the specific confidence level of the estimate. The confidence level of an interval estimate of a parameter is the probability that the interval estimate will contain the parameter. ** To find a confidence interval, determine , the level of confidence.
Confidence Interval Estimate for , ( Known)

x z
2

n
2) 95% 3) 99%

Ex. Find the z-score used with each level of confidence: 1) 90%

Ex.

The president of a large university wishes to estimate the average age of the students presently enrolled. From past studies, the standard deviation is known to be 2 years. A sample of 50 students is selected, and the mean is found to be 23.2 years. Fund the 95% confidence interval of the population mean.

Ex.

A certain medication is known to increase the pulse rate of its users. The standard deviation of the pulse rate is known to be 5 beats per minute. A sample of 30 users had an average pulse rate of 104 beats per minute. Find the 99% confidence interval of the true mean.

Ex.

A sample of 50 days showed that a fast-food restaurant served an average of 182 customers during lunch time (11:00 AM to 2:00 PM). The standard deviation of the population was known to be 8 customers. Find the 90% confidence interval for the mean.

Ex.

The following data represent a sample of the assets (in millions of dollars) of 30 credit unions in southwestern Pennsylvania. Find the 90% confidence interval of the mean. 12.23 16.56 4.39 2.89 11.59 6.69 1.06 8.74 5.01 1.47 12.24 2.27 1.24 2.17 13.19 9.16 3.17 18.13 7.92 4.78 12.77 2.76 1.42 73.25 1.91 16.85 40.22 2.42 14.64 21.58

As the level of confidence increases, the width of the confidence interval _______________________. As the standard deviation increases, the width of the confidence interval _______________________. As the sample size increases, the width of the confidence interval _______________________.

Sample Size Often, we must ask the question, How large a sample is necessary to make an accurate estimate? The answer depends on three things: 1. the maximum error of the estimate 2. the population standard deviation 3. the degree of confidence The formula for sample size is derived from the maximum error of estimate formula, E = z 2 n Solve for n z n= 2 E
2

Ex.

The college president asks the statistics teacher to estimate the average age of the students at their college. How large a sample is necessary if the estimate is to be accurate within 1 year and be 99% confident? From a previous study, the standard deviation of the ages was found to be 2 years.

Statistics Notes 7.2 Confidence Intervals for the Mean when is Unknown When is known we use the standard normal distribution to find confidence intervals for the mean. However, most of the time is not known. In this case we use the t-distribution. Characteristics of the t Distribution 1. 2. 3. 4. It is bell shaped. It is symmetrical about the mean. The mean, median, and mode are equal to 0 and are located at the center of the distribution. The curve never touches the x-axis.

The t-distribution differs from the standard normal distribution in that: 1. 2. 3. The variance is greater than 1. The t-distribution is actually a family of curves based on the concept of degrees of freedom, which is related to the sample size. The t-distribution is thicker on the ends and not as high in the center as the standard normal distribution. As the sample size increases, the t-distribution approaches the standard normal distribution. Find each of the following: 1. t (14, 0.05) 2. t (21, 0.90)

Ex.

3. t (8, 0.01)

4. t (42, 0.95)

Formula for a Specific Confidence Interval for the Mean ( Unknown and n < 30) s x t , where df = n 1 n 2

Ex.:

Find the t value for a 95% confidence interval when the sample size is 22.
2

Ex

Find the t value for a 99% confidence interval when the sample size is 14.
2

Ex.:

Ten randomly selected automobiles were stopped, and the tread depth of the right front tire was measured. The mean was 0.32 inch, and the standard deviation was 0.08 inch. Find the 95% confidence interval of the mean depth. Assume that the variable is approximately normally distributed.

Ex.

A random sample of size 20 is taken from the weights of babies born at Northside Hospital during the year 1982. A mean of 6.87 pounds and a standard deviation of 1.76 pounds were found for the sample. Estimate, with 95% confidence, the mean weight of all babies born in this hospital in 1982.

Statistics Notes 7.3 Confidence Intervals and Sample Size for Proportions Consider the statement: 12% of the pleasure boats in the United States were named Serenity. The 12% is called a proportion. It means in the entire population, 12 out of every 100 were named Serenity. Notation 1. Symbol for the population proportion: ______ 2. Symbol for the sample proportion: _____ If a survey of 200 people were asked what their boat was named and 20 answered Serenity, what is the sample proportion? Formula for sample proportion: ________________ and q . Ex. 8 In a recent survey of 150 households, 54 had central air-conditioning. Find p

Confidence Intervals To construct a confidence interval about a proportion, use the maximum error of estimate: E, p where E = z
2

pq n

** Confidence intervals about proportions must meet the criteria that np 5 and nq 5 .

Ex. 9 A sample of 500 nursing applications included 60 from males. Find the 90% confidence interval of the true proportion of males who applied to the nursing program.

Ex. 10 In a sample of 100 teenage girls, 30% used hair coloring. Find the 95% confidence interval of the true proportion of teenage girls who use hair coloring.

Sample Size for Proportions In order to find the sample size necessary for determining a confidence interval about a proportion, one uses the formula: z 2 n = pq E
2

Ex. 11 A researcher wishes to estimate, with 95% confidence, the number of people who own a home computer. A previous study shows that 40% of those interviewed had a computer at home. The researcher wishes to be accurate within 2% of the true proportion. Find the minimum sample size necessary.

Ex. 12 The same researcher wishes to estimate the proportion of executives who own a cellular phone. She wants to be 90% confident and be accurate within 5% of the true proportion. Find the minimum sample size necessary.

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