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Estimation of The Mean and Proportion: Prem Mann, Introductory Statistics, 9/E
Estimation of The Mean and Proportion: Prem Mann, Introductory Statistics, 9/E
ESTIMATION OF THE
MEAN AND
PROPORTION
1. Select a sample.
2. Collect the required information from the members of
the sample.
3. Calculate the value of the sample statistic.
4. Assign value(s) to the corresponding population
parameter.
x z x
where x = / n
Point estimate ± Margin of error
E z x
35
x $7.00
n 25
𝜎 40
𝜎 𝑥= = =1.63299316
√ 𝑛 √ 600
Thus, we can state with 99% confidence that the current mean
annual cost to major U.S. banks of all individual checking
accounts is between $495.79 and $504.21
s
x ts x where s x
n
The value of t is obtained from the t distribution table for n – 1
degrees of freedom and the given confidence level. Here ts
is the margin of error of the estimate; that is, x
E ts x
𝑠 800
𝑠𝑥 = = =$ 160
√𝑛 √25
s 300
sx $37.50
n 64
pˆ qˆ
s pˆ
n
ˆ zs pˆ
p
The value of z is obtained from the standard normal distribution
table for the given confidence level, and s p ˆ ˆ
q /n .
pˆ
The term zs p̂ is called the margin of error, or the maximum
error of the estimate, and is denoted by E.
pˆ qˆ (.75)(.25)
s pˆ .010147187
n 1821
Note that npˆ and nqˆ are both greater than 5.
pˆ qˆ (.63)(.37)
s pˆ .01079583
n 2000
The value of z for .97 / 2 = .4850 is 2.17.
ˆˆ
z pq 2
n 2
E
ˆ ˆ (1.96)2 (.50)(.50)
z 2 pq
n 2
2
2401
E (.02)
Thus, if the company takes a sample of 2401 parts, there
is a 95% chance that the estimate of p will be within .02 of
the population proportion.
ˆ ˆ (1.96)2 (.07)(.93)
z 2 pq
n 2
E (.02)2
(3.8416)(.07)(.93)
625.22 626
.0004