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Estimation and Confidence Intervals: ©the Mcgraw-Hill Companies, Inc. 2008 Mcgraw-Hill/Irwin
Estimation and Confidence Intervals: ©the Mcgraw-Hill Companies, Inc. 2008 Mcgraw-Hill/Irwin
Intervals
Chapter 9
2
Point and Interval Estimates
3
Factors Affecting Confidence Interval
Estimates
4
Interval Estimates - Interpretation
5
Characteristics of the t-distribution
6
Comparing the z and t Distributions
when n is small
7
Confidence Interval Estimates for the
Mean
8
When to Use the z or t Distribution for
Confidence Interval Computation
9
Confidence Interval for the Mean –
Example using the t-distribution
10
Student’s t-distribution Table
11
Confidence Interval Estimates for the Mean –
Using Minitab
12
Confidence Interval Estimates for the Mean –
By Formula
13
Confidence Interval Estimates for the Mean –
Using Minitab
14
Confidence Interval Estimates for the Mean –
Using Excel
15
Using the Normal Distribution to
Approximate the Binomial Distribution
16
Confidence Interval for a Population
Proportion
p(1 p)
p z / 2
n
17
Confidence Interval for a Population
Proportion- Example
N n p (1 p ) N n
x p
n N 1 n N 1
19
Effects on FPC when n/N Changes
C.I. for the Mean () C.I. for the Mean ()
N n s N n
X z X t
n N 1 n N 1
p(1 p) N n
pz
n N 1
21
CI For Mean with FPC - Example
s N n
X t
n N 1
22
CI For Mean with FPC - Example
s N n
X t
n N 1
$75 250 40
$450 t.10, 401
40 250 1
$75 250 40
$450 1.685
40 250 1
$450 $19.98 .8434
$450 $18.35
($431.65,$468.35)
It is likely tha t the population mean is more than $431.65 but less than $468.35.
To put it another wa y, could the population mean be $445? Yes, but it is not
likely tha t it is $425 because the value $445 is within th e confidence
interval and $425 is not within the confidence interval.
23
Selecting a Sample Size
24
Sample Size Determination for a
Variable
zs
2
n
E
where :
E - the allowable error
z - the z - value correspond ing to the selected
level of confidence
s - the sample deviation (from pilot sample)
25
Sample Size Determination for a
Variable-Example
Given in the problem:
E, the maximum allowable error, is $100
$100
The value of z for a 95 percent level of
confidence is 1.96, (19.6) 2
The estimate of the standard deviation is
$1,000. 384.16
385
26
Sample Size Determination for a
Variable- Another Example
2
(2.58)( 20 )
n 107
5
27
Sample Size for Proportions
where :
p is estimate from a pilot study or some source,
otherwise, 0.50 is used
z - the z - value for the desired confidence level
E - the maximum allowable error
28
Another Example
2
1.96
n (.30 )(. 70 ) 897
.03
29
Another Example
30
End of Chapter 9
31