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Exam #2

Review

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Chapter 9

Re-expressing Data:
Getting It Straight!

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Straight to
the Point
• We cannot use a linear model unless the relationship
between the two variables is linear. Often re-
expression can save the day, straightening bent
relationships so that we can fit and use a simple
linear model.
• Two simple ways to re-express data are with
logarithms and reciprocals.
• Re-expressions can be seen in everyday life—
everybody does it.

Slide 10 - 3
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Straight to the
Point (cont.)
• The relationship between fuel efficiency
(in miles per gallon) and weight (in
pounds) for late model cars looks fairly
linear at first:

Slide 10 - 4
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Straight to
the Point
(cont.)

• A look at the
residuals plot
shows a
problem:

Slide 10 - 5
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Straight to the Point (cont.)
• We can re-express fuel efficiency as gallons per
hundred miles (a reciprocal) and eliminate the bend in
the original scatterplot:

Slide 10 - 6
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Straight to the Point (cont.)

• A look at the residuals plot for the new


model seems more reasonable:

Slide 10 - 7
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Why Not Just Use a Curve?
If there’s a curve in the scatterplot, why not
just fit a curve to the data?

Slide 10 - 8
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Why Not Just Use a Curve?
(cont.)

• The mathematics and calculations


for “curves of best fit” are
considerably more difficult than
“lines of best fit.”
• Besides, straight lines are easy to
understand. We know how to think
about the slope and the y-intercept.
Slide 10 - 9
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What Should You Be Able to Do?

Recognize if a Straight Line is a Good Fit

Make a Judgement about Residuals

Suggest a Transformation

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Chapter 13

From Randomness
to Probability

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13.1

Random
Phenomena

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Red Light, Green Light

Each day you drive through an intersection and check if


the light is red, green, or yellow.
• Day 1: green
• Day 2: red
• Day 3: green
Before you begin, you know:
• The possible outcomes
• An outcome will occur.
After you finish, you know:
• The outcomes that occurred

Copyright © 2016, 2014, 2012, 2009 Pearson Education, Inc. 13


Random Phenomena Vocabulary

Trial
• Each occasion which we observe a random
phenomena
Outcome
• The value of the trial for the random phenomena

Event
• The combination of the trial’s outcomes

Sample Space
• The collection of all possible outcomes

Copyright © 2016, 2014, 2012, 2009 Pearson Education, Inc. 14


The Law of Large Numbers

• If you flip a coin once, you will either get 100% heads
or 0% heads.
• If you flip a coin 1000 times, you will probably get
close to 50% heads.

The Law of Large Numbers states that for many trials,


the proportion of times an event occurs settles down to
one number.
• This number is called the empirical probability.

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The Law of Large Numbers Requirements

Identical Probabilities
• The probabilities for each event must remain the
same for each trial.
Independence
• The outcome of a trial is not influenced by the
outcomes of the previous trials.
Empirical probability
• P(A)  # times A occurs (in the long run)
# of trials

Copyright © 2016, 2014, 2012, 2009 Pearson Education, Inc. 16


The Law of Large Numbers Requirements

Identical Probabilities
• The probabilities for each event must remain the
same for each trial.
Independence
• The outcome of a trial is not influenced by the
outcomes of the previous trials.
Empirical probability
• P(A)  # times A occurs (in the long run)
# of trials

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13.2

Modeling
Probability

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Theoretical Probability

American Roulette
• 18 Red, 18 Black, 2 Green
• If you bet on Red, what is the probability of winning?

Theoretical Probability

• P(A) = # of outcomes in A
# of possible outcomes
• P(red)  18
38

Copyright © 2016, 2014, 2012, 2009 Pearson Education, Inc. 19


Personal Probability

What’s your chance of getting an A in statistics?


• You cannot base this on your long-run experience.

• There is no sample space of events with equal


probabilities to list.
• You can only base your answer on personal
experience and guesswork.
• Probabilities based on personal experience rather
than long-run relative frequencies or equally likely
events are called personal probabilities.

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13.3

Formal Probability

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Rules 1 and 2

Rule 1: 0 ≤ P(A) ≤ 1
• You can’t have a −25% chance of winning.
• A 120% chance also makes no sense.

• Note: Probabilities are written in decimals.


• 45% chance → P(A) = 0.45

Rule 2: P(S) = 1
• The set of all possible outcomes has probability 1.
• There is a 100% chance that you will get a head or
a tail.

Copyright © 2016, 2014, 2012, 2009 Pearson Education, Inc. 22


Rule 3: The Complement Rule

Complements
• Define AC as the complement of A.

• AC is the event of A not happening.


• If A is the event of rolling a 5 on a six sided die,
then AC is the event of not rolling a 5: {1, 2, 3, 4, 6}
• P(A) = 1/6. P(AC) = ?
• P(AC) = 5/6 = 1 – 1/6

The Rule of Complements: P(AC) = 1 – P(A)

Copyright © 2016, 2014, 2012, 2009 Pearson Education, Inc. 23


Rule 4: The Addition Rule

Suppose
P(sophomore) = 0.2 and P(junior) = 0.3
• Find P(sophomore OR junior)
• Solution: 0.2 + 0.3 = 0.5
• This works because sophomore and junior are
disjoint events. They have no outcomes in
common.
The Addition Rule
• If A and B are disjoint events, then
P(A OR B) = P(A) + P(B)

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Rule 5: The Multiplication Rule

The probability that an Atlanta to Houston flight is on time


is 0.85.
• If you have to fly every Monday, find the probability
that your first two Monday flights will be on time.
Multiplication Rule: For independent events A and B:
P(A AND B) = P(A) × P(B)
• P(1st on time AND 2nd on time)
= P(1st on time) × P(2nd on time)
= 0.85 × 0.85
= 0.7225

Copyright © 2016, 2014, 2012, 2009 Pearson Education, Inc. 25


What Can Go Wrong?

• Beware of probabilities that don’t add up to 1.


• If they add to less than 1, look for another category.
• If they add to more than 1, maybe they are not
disjoint.

• Don’t add probabilities of events if they are not


disjoint.
• Events must be disjoint to use the Addition Rule.

Copyright © 2016, 2014, 2012, 2009 Pearson Education, Inc. 26


What Can Go Wrong?

• Don’t multiply probabilities of events if they are not


independent.
• P(over 6’ and on basketball team) is not equal to
P(over 6’) × P(on basketball team)

• Don’t confuse disjoint and independent


• Disjoint events are never independent.

Copyright © 2016, 2014, 2012, 2009 Pearson Education, Inc. 27


What Should You Be Able to Do?

Demonstrate an Understanding of Probability Concepts

Explain the Importance of the Law of Large Numbers

Calculate Probabilities from a Problem Statement

Demonstrate the Use of the 5 Rules

Copyright © 2016, 2014, 2012, 2009 Pearson Education, Inc. 28


Chapter 14

Probability Rules!

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14.1

The General
Addition Rule

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The General Addition Rule

P(A or B) = P(A) + P(B) – P(A and B)


• The General Addition Rule
in words: Add the probabilities
of the two events and then
subtract the probability of
their intersection.

P(odd amount or bill with a building)


= P(A) + P(B) – P(A and B}
= P({$1, $5}) + P({$5, $10, $20, $50, $100}) – P({$5})

Copyright © 2016, 2014, 2012, 2009 Pearson Education, Inc. 31


Using Venn Diagrams

P(not in relationship and no sports)


• P(RC and SC)
• This is the part outside of both
circles: 0.53.
P(in a relationship but no sports)
• P(R and SC)
• This is the part in the circle R that is outside S: 0.22.

P(in a relationship or involved in sports but not both)


• P((R and SC) or (RC and S))
• This is the combination of the circles minus the
intersection: 0.22 + 0.14 = 0.36
Copyright © 2016, 2014, 2012, 2009 Pearson Education, Inc. 32
14.2

Conditional Probability
and the General
Multiplication Rule

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Contingency Table
A table that displays the
results of two categorical
questions is called a contingency table.

• P(girl) = 251/478 = 0.525

• P(girl and popular) = 91/478 = 0.190

• P(sports) = 90/478 = 0.188

Copyright © 2016, 2014, 2012, 2009 Pearson Education, Inc. 34


Conditional Probability Formula

Probability of B Given A:
P ( A and B)
• P (B | A) =
P( A)
• Example:
P (girl and popular )
P(girl | popular) =
P (popular )
91/ 478

141/ 478
91
  0.65
141
Copyright © 2016, 2014, 2012, 2009 Pearson Education, Inc. 35
The General Multiplication Rule

• For A and B independent, we had:


P(A and B) = P(A) × P(B)

• Rearranging the conditional probability equation, we


get the General Multiplication Rule:
P(A and B) = P(A) × P(B | A)

• Equivalently,
P(A and B) = P(B) × P(A | B)

Copyright © 2016, 2014, 2012, 2009 Pearson Education, Inc. 36


14.3

Independence

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Definition of Independence

• Events A and B are independent if knowing A


happened does not change the probability of B. In
symbols:
A and B are independent ↔ P(B | A) = P(B)

• Equivalent formulas for independence:


• P(A | B) = P(A)
• P(A and B) = P(A) × P(B)

Copyright © 2016, 2014, 2012, 2009 Pearson Education, Inc. 38


14.4

Picturing Probability:
Tables, Venn
Diagrams, and Trees

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Marginal and Joint Probabilities

• 71% use Facebook, 18% Twitter, 15% both


• Draw a partial table.
• 0.71 and 0.18 are called
marginal probabilities.
• 0.15 is a joint probability.
• How can we complete the
table?
• The sum must add up
• 0.15 + ? = 0.71
• 0.18 + ? = 1.00

Copyright © 2016, 2014, 2012, 2009 Pearson Education, Inc. 40


Tree Diagrams

• 44% binge drink, 37% drink moderately, 19% don’t


drink
• Binge drinkers: 17% in an alcohol related accident
• Non-bingers: 9% in an alcohol-related accident
• Find the probability of being a binge drinker and has
had an alcohol-related accident.
• Venn diagrams and tables are not great for
conditional probabilities.
• Use a tree diagram.

Copyright © 2016, 2014, 2012, 2009 Pearson Education, Inc. 41


Tree Diagrams

• The three branches are shown.


• This tree diagram gives
the complete information.
• Notice the sums:
• 0.17 + 0.83 = 1
• 0.09 + 0.91 = 1
• 0 + 1.0 = 1
• 0.44 + 0.37 + 0.19 = 1
• Conditional Probabilities:
• P(none | binge) = 0.83.

Copyright © 2016, 2014, 2012, 2009 Pearson Education, Inc. 42


Probabilities From Trees

• P(moderate and accident)


= 0.37 × 0.09
= 0.0333
• P(abstain and accident)
= 0.19 × 0
= 0
• P(none) = (0.44 × 0.83)
+ (0.37 × 0.91) + (0.19 × 1.0)
= 0.8919

Copyright © 2016, 2014, 2012, 2009 Pearson Education, Inc. 43


Tree Diagram Facts

• The sum of the probabilities


emanating from any branch
is 1.
• The final outcomes are disjoint.

• To find a conditional probability,


multiply across.

Copyright © 2016, 2014, 2012, 2009 Pearson Education, Inc. 44


14.5

Reversing the
Conditioning and
Bayes’ Rule

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Going Backwards

• Find P(binge | accident)


• Work backwards through the tree
P (binge and accident)
• P (binge | accident) =
P (accident)
0.44  0.17

 0.44  0.17    0.37  0.91   0.19  0 

0.075
  0.694
0.108

Copyright © 2016, 2014, 2012, 2009 Pearson Education, Inc. 46


Bayes’ Rule for Two Branches

• Used for reversing the condition


• Expressed as an algebraic formula instead of a tree
• The tree is easier to use.
• A longer version works for more than 2 branches.

P ( A | B)P (B)
P (B | A) =
P ( A | B)P (B)+ P( A | BC )P(BC )

Copyright © 2016, 2014, 2012, 2009 Pearson Education, Inc. 47


What Can Go Wrong?

Don’t use a simple probability rule where a general rule is


appropriate.
• Don’t assume independence or disjoint until after you
have done the verification.
Don’t reverse conditioning naïvely.
• P(A | B) may not be the same as P(B | A).

Don’t confuse “disjoint” with “independent.”


• Disjoint events cannot happen at the same time.
• Independent events must be able to happen at the
same time.

Copyright © 2016, 2014, 2012, 2009 Pearson Education, Inc. 48


What Should You Be Able to Do?

Solve Problems Using the General Addition Rule

Interpret Venn Diagrams

Calculate Conditional Probabilities

Establish Independence

Construct Tree Diagrams and Use to Answer Questions

Show Relationship of Tree Diagrams and Bayes Rule

Copyright © 2016, 2014, 2012, 2009 Pearson Education, Inc. 49


Chapter 15

Random Variables

Copyright © 2016, 2014, 2012, 2009 Pearson Education, Inc. 50


Expected Value: Center (cont.)

There are two types of random variables:


• Discrete random variables can take one of a
countable number of distinct outcomes.
• Example: Number of credit hours
• Continuous random variables can take any
numeric value within a range of values.
• Example: Cost of books this term

Copyright © 2016, 2014, 2012, 2009 Pearson Education, Inc.


Slide 16 - 51 51
15.1

Center:
The Expected
Value

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Expected Value: Center (cont.)

The expected value of a (discrete) random variable


can be found by summing the products of each
possible value by the probability that it occurs:

m = E ( X ) = å x × P (x )

Note: Be sure that every possible outcome is


included in the sum and verify that you have a
valid probability model to start with.

Copyright © 2016, 2014, 2012, 2009 Pearson Education, Inc.


Slide 16 - 53 53
15.2

Spread:
The Standard
Deviation

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First Center, Now Spread…

For data, we calculated the standard deviation by


first computing the deviation from the mean and
squaring it. We do that with discrete random
variables as well.
s = Var ( X ) = å (x - m ) × P (x )
The variance for
2 a random variable 2is:

The standard deviation for a random variable is:


s = SD ( X ) = Var ( X )

Copyright © 2016, 2014, 2012, 2009 Pearson Education, Inc.


Slide 16 - 55 55
15.3

Shifting and
Combining
Random Variables

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More About Means and Variances

Adding or subtracting a constant from data shifts the


mean but doesn’t change the variance or standard
deviation:
E(X ± c) = E(X) ± c Var(X ± c) = Var(X)

• Example: Consider everyone in a company


receiving a $5000 increase in salary.

Copyright © 2016, 2014, 2012, 2009 Pearson Education, Inc.


Slide 16 - 57 57
More About Means and Variances (cont.)

In general, multiplying each value of a random


variable by a constant multiplies the mean by that
constant and the variance by the square of the
constant:
E(aX) = aE(X) Var(aX) = a2Var(X)

• Example: Consider everyone in a company


receiving a 10% increase in salary.

Copyright © 2016, 2014, 2012, 2009 Pearson Education, Inc.


Slide 16 - 58 58
More About Means and Variances (cont.)

In general,
• The mean of the sum of two random variables is
the sum of the means.
• The mean of the difference of two random
variables is the difference of the means.
E(X ± Y) = E(X) ± E(Y)
• If the random variables are independent, the
variance of their sum or difference is always the
sum of the variances.
Var(X ± Y) = Var(X) + Var(Y)

Copyright © 2016, 2014, 2012, 2009 Pearson Education, Inc.


Slide 16 - 59 59
15.4

Continuous
Random Variables

Copyright © 2016, 2014, 2012, 2009 Pearson Education, Inc. 60


Continuous Random Variables (cont.)

Good news: nearly everything we’ve said about how


discrete random variables behave is true of
continuous random variables, as well.
When two independent continuous random variables
have Normal models, so does their sum or
difference.
This fact will let us apply our knowledge of Normal
probabilities to questions about the sum or
difference of independent random variables.

Copyright © 2016, 2014, 2012, 2009 Pearson Education, Inc.


Slide 16 - 61 61
What Can Go Wrong? (cont.)

Don’t forget: Variances of independent random


variables add. Standard deviations don’t.
Don’t forget: Variances of independent random
variables add, even when you’re looking at the
difference between them.
Don’t write independent instances of a random
variable with notation that looks like they are the
same variables.

Copyright © 2016, 2014, 2012, 2009 Pearson Education, Inc.


Slide 16 - 62 62
What Should You Be Able to Do?

Find Mean and Variance of Combined Distributions

Copyright © 2016, 2014, 2012, 2009 Pearson Education, Inc. 63


Chapter 16

Probability
Models

Copyright © 2016, 2014, 2012, 2009 Pearson Education, Inc. 64


16.2

The Geometric
Model

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The Geometric Model

• We want to model how long it will take to achieve


the first success in a series of Bernoulli trials.
• The model that tells us this probability is called the
Geometric probability model.

Copyright © 2016, 2014, 2012, 2009 Pearson Education, Inc. 66


Geometric Probability Model for
Bernoulli Trials: GEOM(n, p)
p = probability of success
q = 1 – p = probability of failure
X = number of trials until the first success
occur
P( X = x) = q p
x-1

1
E(X) = m =
Expected value: p
q
s=
Standard deviation: p 2

Copyright © 2016, 2014, 2012, 2009 Pearson Education, Inc. 67


16.3

The Binomial
Model

Copyright © 2016, 2014, 2012, 2009 Pearson Education, Inc. 68


The Binomial Model

• A Binomial probability model describes the


number of successes in a specified number of
trials.
• It takes two parameters to specify this model: the
number of trials n and the probability of success p.

Copyright © 2016, 2014, 2012, 2009 Pearson Education, Inc. 69


Binomial Probability Model for
Bernoulli Trials: BINOM(n, p)
x = number of trials
p = probability of success
q = 1 – p = probability of failure
X = number of successes in n trials
n!
P ( X = x ) = n Cx p q , x n-x
n Cx =
x!( n - x )!
Mean: m = np
Standard deviation: s = npq

Copyright © 2016, 2014, 2012, 2009 Pearson Education, Inc. 70


16.4

Approximating the
Binomial with the
Normal Model

Copyright © 2016, 2014, 2012, 2009 Pearson Education, Inc. 71


Example: Spam and the Normal
Approximation to the Binomial
Only 151 of 1422 emails got through your spam filter.
Might the filter be too aggressive?
• What is the probability that no more than 151 of
the emails are real messages?

• These emails represent less than 10% of all


emails.
• np = (1422)(0.09) = 127.98  10
• nq = (1422)(0.91) = 1294.02  10

• Yes, the Normal model is a good


approximation.
Copyright © 2016, 2014, 2012, 2009 Pearson Education, Inc. 72
Example: Spam and the Normal
Approximation to the Binomial
• What is the probability that no more than 151 of
the emails are real messages?
•  = np = 127.98
• σ = npq  10.79

•P ( X  151-127.98 
 151)  P  z    P ( z  2.13)  0.9834
 10.79 
• There is over a 98% chance that no more than
151 of them were real messages. The filter may
be working.

Copyright © 2016, 2014, 2012, 2009 Pearson Education, Inc. 73


16.5

The Continuity
Correction

Copyright © 2016, 2014, 2012, 2009 Pearson Education, Inc. 74


The Continuity Correction
When we use the Normal distribution to approximate
discrete events, we go halfway to the next value on
the left and/or right.
Approximate P ( X = 10 ) by finding P ( 9.5 £ X £ 10.5 )
Binomial ( 50,0.2 ) , m = 10, s = 2.83
æ 9.5 -10 10.5 -10 ö
P ( 9.5 £ X £ 10.5 ) » P ç £z£ ÷
è 2.83 2.83 ø
= P ( -0.177 £ z £ 0.177 )
= 0.1405
The exact Binomial probability is 0.1398.
Copyright © 2016, 2014, 2012, 2009 Pearson Education, Inc. 75
16.6

The Poisson
Model

Copyright © 2016, 2014, 2012, 2009 Pearson Education, Inc. 76


Poisson for Small p

• For rare events (small p), np may be less than


10.
• Use the Poisson instead of the Normal model.
• l = np mean number of successes
• X = number e  lof
l xsuccesses
P( X = x) 
• x!
E ( X )  l , SD( X )  l

• Good approximation if n  20 with p ≤ 0.05


or n ≤ 100 with p ≤ 0.10
Copyright © 2016, 2014, 2012, 2009 Pearson Education, Inc. 77
16.7

Other Continuous
Random
Variables: The
Uniform and
Exponential

Copyright © 2016, 2014, 2012, 2009 Pearson Education, Inc. 78


The Uniform Distribution
ì 1
ï , if a £ x £ b
f ( x) = íb - a
ïî0 otherwise

Copyright © 2016, 2014, 2012, 2009 Pearson Education, Inc. 79


The Exponential Distribution

f ( x ) = l e- l x for x ³ 0 and l > 0

Copyright © 2016, 2014, 2012, 2009 Pearson Education, Inc. 80


What Can Go Wrong?

Be sure you have Bernoulli Trials.


• two possible outcome, constant probability of
success, independence
Don’t confuse Geometric and Binomial models.
• Geometric: repeat until get first success
• Binomial: counting success in specified number
of trials
Don’t use the normal approximation for small n.
• np > 10, nq > 10

Copyright © 2016, 2014, 2012, 2009 Pearson Education, Inc. 81


What Should You Be Able to Do?

Calculate Geometric Probability (First Success)

Calculate Binomial Probability (Number of Successes)

Use Normal Distribution to Estimate Binomial Probability

Copyright © 2016, 2014, 2012, 2009 Pearson Education, Inc. 82


Chapter 17

Sampling
Distribution
Models

Copyright © 2016, 2014, 2012, 2009 Pearson Education, Inc. 83


17.1

Sampling
Distribution of a
Proportion

Copyright © 2016, 2014, 2012, 2009 Pearson Education, Inc. 84


Sampling Distributions

Sampling Distribution for Proportions


• Symmetric
• Unimodal
• Centered at p
• The sampling distribution follows the Normal
model.

What does the sampling distribution tell us?


• The sampling distribution allows us to make
statements about where we think the
corresponding population parameter is and how
precise these statements are likely to be. 85
Copyright © 2016, 2014, 2012, 2009 Pearson Education, Inc.
Mean and Standard Deviation

Sampling Distribution for Proportions


• Mean = p
npq pq
• σ( pˆ ) = =
n n
 pq 
• N  p, 
 n 

Copyright © 2016, 2014, 2012, 2009 Pearson Education, Inc. 86


The Normal Model for Climate Change
Population: p = 0.57, n = 1022. Sampling
Distribution:
• Mean = 0.57 0.57 0.43
SD( p̂) =
( )( ) » 0.0155
• Standard deviation = 1022

Copyright © 2016, 2014, 2012, 2009 Pearson Education, Inc. 87


17.2

When Does the


Normal Model
Work?
Assumptions and
Conditions

Copyright © 2016, 2014, 2012, 2009 Pearson Education, Inc. 88


When Does the Normal Model Work?

• Success Failure Condition:


np  10, nq  10 There must be at
least 10 expected successes and
failures.

• Independent trials: Check for


the Randomization Condition.

• 10% Condition: Sample size less


than 10% of the population size

Copyright © 2016, 2014, 2012, 2009 Pearson Education, Inc. 89


17.4

The Central Limit


Theorem: The
Fundamental
Theorem of
Statistics

Copyright © 2016, 2014, 2012, 2009 Pearson Education, Inc. 90


The Central Limit Theorem
The Central Limit Theorem
• The sampling distribution of any mean becomes
nearly Normal as the sample size grows.
Requirements
• Independent
• Randomly collected sample

The sampling distribution of the means is close to


Normal if either:
• Large sample size
• Population close to Normal

Copyright © 2016, 2014, 2012, 2009 Pearson Education, Inc. 91


The Sampling Distribution Model for a
Mean
When a random sample is drawn from a population
with mean  and standard deviation s, the sampling
distribution has:
• Mean: 
s
• Standard Deviation:
n
• For large sample size, the distribution is
approximately normal regardless of the
population the random sample comes from.
• The larger the sample size, the closer to
Normal. Copyright © 2016, 2014, 2012, 2009 Pearson Education, Inc. 92
17.5

Sampling
Distributions: A
Summary

Copyright © 2016, 2014, 2012, 2009 Pearson Education, Inc. 93


Sample Size and Standard Deviation

s pq
• SD(y ) = SD( pˆ ) =
n n
• Larger sample size → Smaller standard deviation

• Multiply n by 4 → Divide the standard deviation


by 2.

• Need a sample size of 100 to reduce the


standard deviation by a factor of 10.

Copyright © 2016, 2014, 2012, 2009 Pearson Education, Inc. 94


Distribution of the Sample
vs. the Sampling Distribution
Don’t confuse the distribution of the sample and the
sampling distribution.
• If the population’s distribution is not Normal,
then the sample’s distribution will not be normal
even if the sample size is very large.

• For large sample sizes, the sampling


distribution, which is the distribution of all
possible sample means from samples of that
size, will be approximately Normal.

Copyright © 2016, 2014, 2012, 2009 Pearson Education, Inc. 95


What Should You Be Able to Do?

Describe Sampling Distribution

Calculate the Standard Deviation of the Sampling


Distribution

Use Standard Normal Table to Calculate Probabilities

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Chapter 18

Confidence
Intervals for
Proportions

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17.5

Sampling
Distributions: A
Summary

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Standard Error for a Proportion

What is the sampling distribution?


• Usually we do not know the population
proportion p.
• We cannot find the standard deviation of the
sampling distribution: pq
n
• After taking a sample, we only know the sample
proportion, which we use as an approximation.
• The standard error is given by
ˆˆ
pq
SE  p
ˆ 
n

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Facebook Daily Status Updates

A recent survey found that 48 of 156


or 30.8% update their Facebook
status daily.
• SE  pˆ  
ˆˆ
pq

 0.308  0.692   0.037
n 156
• The sampling distribution is approximately
normal.

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What You Can Say About p if You p̂
Know
We don’t know exactly what percent of all Facebook
users update their status daily, but the interval from
23.4% and 38.2% probably contains the true
proportion.
• Note, we admit we are unsure about both the
exact proportion and whether it is in the interval.

We are 95% confident that between 23.4% and


38.2% of all Facebook users update their status
daily.
• Notice “% confident” and an interval rather than
an exact value are stated. 101
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18.2
Interpreting
Confidence
Intervals:
What Does 95%
Confidence Really
Mean?

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Capturing a Proportion

• The confidence interval may or may not contain


the true population proportion.
• Consider repeating the study over an over
again, each time with the same sample size.
• Each time we would get a different
p̂ .
• From eachp̂ , a different confidence interval
could be computed.
• About 95% of these confidence intervals will
capture the true proportion.
• 5% will be duds.

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18.3

Margin of Error:
Certainty vs.
Precision

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Margin of Error

• Confidence interval for a population proportion:


pˆ  2SE  pˆ 
• The distance,2SE  pˆ  , from
p̂ is called the
margin of error.
• Confidence intervals also work for means,
regression slopes, and others. In general, the
confidence interval has the form

Estimate  ME
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Critical Values

• For a 95% confidence interval, the margin of


error was 2SE.
• The 2 comes from the normal curve.
• 95% of the area is within about 2SE from the
mean.

• In general the number of SE is called the critical


value. Since we use the normal distribution
here we denote it z*.

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18.4

Assumptions and
Conditions

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Independence and Sample Size

• Independence Condition
• If data is collected using SRS or a randomized
experiment → Randomization Condition
• Some data values do not influence others.
• Check for the 10% Condition: The sample size
is less than 10% of the population size.
• Success/Failure Condition
• There must be at least 10 successes.
• There must be at least 10 failures.

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One-Proportion z-Interval
• First check for randomization, independence,
10%, and conditions on sample size.

• Confidence level C, sample size n, proportion .
• Confidence interval:pˆ  z*SE  pˆ 

• SE  pˆ  
 pˆ qˆ 
n
• z*: the critical value that specifies the number of
SE’s needed for C% of random samples to yield
confidence intervals that capture the population
proportion.

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What Sample Size? ˆˆ
pq
ME  z *
n
• For 95%, z* = 1.96
• pˆ  0.5,
Values that make ME largest are qˆ  0.5
• For example, to ensure a ME < 3%:

0.03  1.96
 0.5  0.5 
n
• Solving for n, gives n ≈ 1067.1.
• We need to survey at least 1068 to ensure a ME
less than 0.03 for the 95% confidence interval.

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What Should You Be Able to Do?

Calculate Confidence Interval for Proportions

Explain Margin of Error

Calculate Appropriate Sample Size

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