Section 7.

5: Confidence interval for the population

mean, (population variance, , unknown)

𝒙−𝝁 Only true when the population

Recall: 𝒁 = 𝝈 𝑵 (𝟎 ,𝟏) standard deviation (and therefore
√𝒏 population variance) is known.

• From chapter 6: if is unknown, it can

be estimated by .
• For small sample sizes (), the
expression above follows a t-
distribution with degrees of
freedom.
 Therefore, a (1)100% confidence interval for , when is
unknown AND , is:

On the 𝑺
formula 𝒙±𝒕 𝜶 replaces
sheet 𝒏− 𝟏 ;𝟏−
𝟐 √𝒏

)is replaced𝜶by a t-multiplier( )

𝒕
The z-multiplier ( 𝒛
𝟏−
𝜶
𝟐
𝒏 −𝟏 ; 𝟏 −
𝜶
𝟐

with the same area to the left 𝟏 − ( 𝟐 )and degrees of freedom

The same procedure as that from Section 7.4 is followed in order to

construct the confidence interval, starting with:
(
𝑷 −𝒕
𝟏−
𝜶
𝟐
<𝒕 <𝒕
𝟏−
𝜶
𝟐
)=𝟏 − 𝜶
So, standard deviation or variance will always be given. You need to
determine if (from the context of the question) the value refers to
that of the sample or the whole population.

Example 4:

The time (in seconds) taken to complete a simple task was recorded
for each of 15 randomly selected employees at a certain company.
The values are given below..

38.2 43.9 38.4 26.2 41.3 42.3 37.5 37.2 41.2 42.3 31 50.1 37.3 36.7 31.8

Calculate 95% and 99% confidence intervals for the mean time it
takes all the employees at this company to complete this task.
 38.2 43.9 38.4 26.2 41.3 42.3 37.5 37.2 41.2 42.3 31 50.1 37.3 36.7 31.8

𝒏 𝟏𝟓 Given

𝒙 𝟑𝟖 . 𝟑𝟔 Calculated from the sample data using STAT mode or formulae's.

78 No information given about population variance.
𝑺
𝒕
𝟏−
𝜶
𝟐 ?

C.I. for

For a (1)100% confidence interval for the mean time it takes all the employees
at this company to complete this task:

We first need to determine which formula will be used.

Since is unknown AND , we will use the following confidence interval:

𝑺
𝒙±𝒕 𝜶
𝒏− 𝟏 ;𝟏−
𝟐 √𝒏
For a 95% confidence interval for the mean time it takes
all the employees at this company to complete this task:

∴𝒕
𝒏 −𝟏 ;𝟏 − ¿ 𝒕 𝟏𝟒 ; 𝟎. 𝟗𝟕𝟓¿ 𝟐 . 𝟏𝟒𝟓
𝜶
𝟐

¿ 𝟑𝟖 . 𝟑𝟔 ± 𝟐 .𝟏𝟒𝟓
𝟓 .𝟕𝟖
√𝟏𝟓 ( ) ∴
𝜶
𝟐
𝜶¿𝟎.𝟗𝟕𝟓
¿ (𝟑𝟓. 𝟏𝟔;𝟒𝟏.𝟓𝟔) ∴ 𝟏−
𝟐
We are 95% sure that μ lies in this interval
For a 99% confidence interval for the mean time it takes all
the employees at this company to complete this task:
𝑺
𝒙±𝒕 𝜶
𝒏− 𝟏 ;𝟏−
𝟐 √𝒏

∴𝒕
𝒏 −𝟏 ;𝟏 −
𝜶
𝟐
¿ 𝒕 𝟏𝟒 ; 𝟎. 𝟗𝟗𝟓¿ 𝟐 . 𝟗𝟕𝟕
𝜶
¿ 𝟑𝟖 . 𝟑𝟔 ± 𝟐 .𝟗𝟕𝟕
𝟓 .𝟕𝟖
√𝟏𝟓 ( ) ∴

∴ 𝟏−
𝟐
𝜶¿ 𝟎 . 𝟗𝟗𝟓
¿ (𝟑𝟑. 𝟗𝟐;𝟒𝟐.𝟖𝟎) 𝟐

We are 95% sure that μ lies in this interval

In Chapter 6, we saw that :

As n increases, t approaches z

So, when is unknown but (large sample), use the C.I.

formula from Section 7.4 with a z-multiplier, but replace by
its sample estimate

𝑺
𝒙±𝒛 𝜶
𝟏−
𝟐 √𝒏
 𝜎
Confidence Intervals for 𝑥± 𝑧 𝛼
1−
2 √𝑛
Error
There is no direct function to compute the confidence interval but
there is a function to compute the value of the error, E.
= CONFIDENCE.NORM(;
NOTE: The value of
𝜎; ) used in the function is
where the confidence coefficient, the same as the value of
𝜎 is the known population standard deviation, used to obtain the Z-
multiplier of
is the sample size.

Therefore: Lower limit CONFIDENCE.NORM(; 𝜎; )

Upper limit CONFIDENCE.NORM(; 𝜎; )
 Confidence Intervals for : Example
= CONFIDENCE.NORM(;
𝜎; )
Woolworths analysed the value of purchases made on credit cards by a random sample
of 25 of their credit card customers. The mean was found to be R170. It is known that
the standard deviation of all credit card purchases is R22.
1) Construct a 95% confidence interval for the mean value We are given:
of credit card purchases by all their credit card customers. 25; 170; 𝜎 = 22
𝜶=𝟏−𝟎. 𝟗𝟓=𝟎. 𝟎𝟓

A 95% C.I. for on all credit card

purchases is (R161.38 ; R178.62).
 Confidence Intervals for : Example
= CONFIDENCE.NORM(;
𝜎; )
Woolworths analysed the value of purchases made on credit cards by a random sample
of 25 of their credit card customers. The mean was found to be R170. It is known that
the standard deviation of all credit card purchases is R22.

2) Construct a 99% confidence for the mean value of We are given:

credit card purchases by all their credit card customers. 25; 170; 𝜎 = 22
𝜶=𝟏−𝟎. 𝟗𝟗=𝟎. 𝟎𝟏

A 99% C.I. for on all credit card

purchases is (R158.67 ; R181.33).
 Confidence Intervals for

We can compute the confidence interval by using the function LError

that computes the value of the error, E, like we did when UError

When (small sample): = CONFIDENCE.T(; S;

use
𝑆 )
𝑥±𝑡 𝛼
𝑛 −1 ;1 −
2 √𝑛 Sample standard deviation

Error

When (large sample):

= CONFIDENCE.NORM(;
use
𝑆 S; )
𝑥± 𝑍 𝛼
1−
2 √𝑛
 Confidence Intervals for and n < 30

A survey of a random sample of 18 grocery shoppers in Kimberley found that the

mean value of their grocery purchases was R78 with a standard deviation of R21.
Find a 98% confidence interval for the average value of the We are given:
grocery purchase by all grocery shoppers in Kimberley. 18; 78; s = 21
We have not been given any other information, therefore the 𝜶=𝟏−𝟎. 𝟗𝟖=𝟎. 𝟎𝟐
population variance, is unknown. With n small we use the t-
distribution to find the C.I
= CONFIDENCE.T(;
S; )

A 98% confidence interval for the

average value of the grocery
purchase by all grocery shoppers
in Kimberley is (R65.29 ; R90.71).
 Confidence Intervals for and n 30

From a random sample of 100 Cape Town car commuters, the mean time to commute
to work daily was found to be 35.8 minutes with a variance of 95.
Construct a 90% confidence interval for the mean time taken We are given:
by all car commuters in Cape Town to travel to work daily. 100; 35.8; = 95
We have not been given any other information, therefore the
population variance, is unknown; BUT n is large so we use the
𝜶=𝟏−𝟎. 𝟗𝟎=𝟎. 𝟏𝟎
normal-distribution to find the C.I

= CONFIDENCE.NORM(; S; )

A 90% confidence interval for the

mean time taken by all car commuters
in Cape Town to travel to work daily
is