Confidence Interval Estimation of Population Mean, μ, when σ is Unknown Chapter 9 Section 2.

Slides:



Advertisements
Similar presentations
Chap 8-1 Statistics for Business and Economics, 6e © 2007 Pearson Education, Inc. Chapter 8 Estimation: Single Population Statistics for Business and Economics.
Advertisements

Confidence Interval Estimation of Population Mean, μ, when σ is Unknown Chapter 9 Section 2.
Statistics for Managers Using Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. Chap 7-1 Chapter 7 Confidence Interval Estimation Statistics for Managers.
Basic Business Statistics, 10e © 2006 Prentice-Hall, Inc. Chap 8-1 Chapter 8 Confidence Interval Estimation Basic Business Statistics 10 th Edition.
1 Business 90: Business Statistics Professor David Mease Sec 03, T R 7:30-8:45AM BBC 204 Lecture 23 = Finish Chapter “Confidence Interval Estimation” (CIE)
Business Statistics: A Decision-Making Approach, 6e © 2005 Prentice-Hall, Inc. Chap 7-1 Introduction to Statistics: Chapter 8 Estimation.
1 Business 90: Business Statistics Professor David Mease Sec 03, T R 7:30-8:45AM BBC 204 Lecture 22 = More of Chapter “Confidence Interval Estimation”
Chapter 8 Estimation: Single Population
Chapter Topics Confidence Interval Estimation for the Mean (s Known)
Fall 2006 – Fundamentals of Business Statistics 1 Business Statistics: A Decision-Making Approach 6 th Edition Chapter 7 Estimating Population Values.
Chapter 7 Estimation: Single Population
Sampling and Sampling Distributions
8-1 Copyright ©2011 Pearson Education, Inc. publishing as Prentice Hall Chapter 8 Confidence Interval Estimation Statistics for Managers using Microsoft.
Copyright ©2011 Pearson Education 8-1 Chapter 8 Confidence Interval Estimation Statistics for Managers using Microsoft Excel 6 th Global Edition.
Chapter 7 Estimating Population Values
Confidence Intervals and Sample Size
Business Statistics, A First Course (4e) © 2006 Prentice-Hall, Inc. Chap 8-1 Chapter 8 Confidence Interval Estimation Business Statistics, A First Course.
Confidence Intervals for the Mean (σ Unknown) (Small Samples)
Statistics for Managers Using Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. Chap 7-1 Chapter 7 Confidence Interval Estimation Statistics for Managers.
Statistics for Managers Using Microsoft Excel, 4e © 2004 Prentice-Hall, Inc. Chap 7-1 Chapter 7 Confidence Interval Estimation Statistics for Managers.
Business Statistics: A Decision-Making Approach, 6e © 2005 Prentice-Hall, Inc. Chap 7-1 Business Statistics: A Decision-Making Approach 6 th Edition Chapter.
Confidence Interval Estimation
Confidence Intervals Chapter 6. § 6.1 Confidence Intervals for the Mean (Large Samples)
Chapter 6 Confidence Intervals.
7.2 Confidence Intervals When SD is unknown. The value of , when it is not known, must be estimated by using s, the standard deviation of the sample.
Basic Business Statistics, 11e © 2009 Prentice-Hall, Inc. Chap 8-1 Chapter 8 Confidence Interval Estimation Basic Business Statistics 11 th Edition.
Confidence Interval Estimation
Chap 8-1 Copyright ©2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 8 Confidence Interval Estimation Business Statistics: A First Course.
Basic Business Statistics, 10e © 2006 Prentice-Hall, Inc. Chap 8-1 Chapter 8 Confidence Interval Estimation Basic Business Statistics 11 th Edition.
Confidence Intervals Chapter 6. § 6.1 Confidence Intervals for the Mean (Large Samples)
© The McGraw-Hill Companies, Inc., Chapter 6 Estimates and Sample Size with One Sample.
Confidence Intervals for Means. point estimate – using a single value (or point) to approximate a population parameter. –the sample mean is the best point.
AP Statistics Chap 10-1 Confidence Intervals. AP Statistics Chap 10-2 Confidence Intervals Population Mean σ Unknown (Lock 6.5) Confidence Intervals Population.
Statistics for Managers Using Microsoft Excel, 5e © 2008 Pearson Prentice-Hall, Inc.Chap 8-1 Statistics for Managers Using Microsoft® Excel 5th Edition.
Unit 7 Section : Confidence Intervals for the Mean (σ is unknown)  When the population standard deviation is unknown and our sample is less than.
H1H1 H1H1 HoHo Z = 0 Two Tailed test. Z score where 2.5% of the distribution lies in the tail: Z = Critical value for a two tailed test.
CHAPTER SIX Confidence Intervals.
Confidence Intervals & Sample Size Chapter 7. Introduction One aspect of inferential statistics is estimation, which is the process of estimating the.
Chap 7-1 A Course In Business Statistics, 4th © 2006 Prentice-Hall, Inc. A Course In Business Statistics 4 th Edition Chapter 7 Estimating Population Values.
Basic Business Statistics, 10e © 2006 Prentice-Hall, Inc. Chap 8-1 Confidence Interval Estimation.
Estimating a Population Mean
Confidence Intervals for the Mean (Small Samples) 1 Larson/Farber 4th ed.
Chap 7-1 A Course In Business Statistics, 4th © 2006 Prentice-Hall, Inc. A Course In Business Statistics 4 th Edition Chapter 7 Estimating Population Values.
Statistics for Business and Economics 8 th Edition Chapter 7 Estimation: Single Population Copyright © 2013 Pearson Education, Inc. Publishing as Prentice.
Chap 8-1 Chapter 8 Confidence Interval Estimation Statistics for Managers Using Microsoft Excel 7 th Edition, Global Edition Copyright ©2014 Pearson Education.
Statistics for Managers Using Microsoft Excel, 5e © 2008 Pearson Prentice-Hall, Inc.Chap 8-1 Statistics for Managers Using Microsoft® Excel 5th Edition.
Chapter 7 Confidence Intervals and Sample Size © Copyright McGraw-Hill
Business Statistics: A Decision-Making Approach, 6e © 2005 Prentice-Hall, Inc. Chap 7-1 Business Statistics: A Decision-Making Approach 6 th Edition Chapter.
Point Estimates point estimate A point estimate is a single number determined from a sample that is used to estimate the corresponding population parameter.
Confidence Intervals for a Population Mean, Standard Deviation Unknown.
Aim: What are confidence intervals for means that have unknown standard deviations and sample sizes less than 30? Quiz Friday.
AP Statistics.  If our data comes from a simple random sample (SRS) and the sample size is sufficiently large, then we know that the sampling distribution.
Copyright © 2015, 2012, and 2009 Pearson Education, Inc. 1 Section 6.2 Confidence Intervals for the Mean (  Unknown)
Section 6.2 Confidence Intervals for the Mean (Small Samples) Larson/Farber 4th ed.
Basic Business Statistics, 11e © 2009 Prentice-Hall, Inc. Chap 8-1 Chapter 8 Confidence Interval Estimation Business Statistics: A First Course 5 th Edition.
Confidence Intervals. Point Estimate u A specific numerical value estimate of a parameter. u The best point estimate for the population mean is the sample.
Statistics for Business and Economics 8 th Edition Chapter 7 Estimation: Single Population Copyright © 2013 Pearson Education, Inc. Publishing as Prentice.
Section 6.2 Confidence Intervals for the Mean (Small Samples) © 2012 Pearson Education, Inc. All rights reserved. 1 of 83.
Chapter 8 Confidence Interval Estimation Statistics For Managers 5 th Edition.
Confidence Intervals and Sample Size
Chapter 7 Confidence Interval Estimation
Confidence Intervals and Sample Size
Confidence Interval Estimation
Confidence intervals for m when s is unknown
Chapter 6 Confidence Intervals.
Chapter 6 Confidence Intervals.
Confidence Interval Estimation
Upcoming Schedule PSU Stat 2014
Upcoming Schedule PSU Stat Jan 2015
Elementary Statistics: Picturing The World
Presentation transcript:

Confidence Interval Estimation of Population Mean, μ, when σ is Unknown Chapter 9 Section 2

The BIG Idea! Most of the time, the value for the populations standard deviation is NOT known. For example, what’s the likelihood anyone know the average number of kids in each family in this school or the standard deviation for that population? How do we develop a confidence interval when the standard deviation for the population is unknown????

Confidence Interval Estimation of Population Mean, μ, when σ is Unknown If the population standard deviation σ is unknown, we can substitute the sample standard deviation, s This introduces extra uncertainty, since s varies from sample to sample So we use the student’s t distribution instead of the normal Z distribution

t-distribution The t – distribution is actually a family of curves based on the concept of degrees of freedom, which relate to sample size. As the sample increases, the t-distribution approaches the standard normal distribution.

Student’s t distribution Note: t Z as n increases Standard Normal t (df = 13) t-distributions are bell-shaped and symmetric, but have ‘fatter’ tails than the normal t (df = 5) t

Degrees of Freedom The degrees of freedom (denoted d.f.) are the number of values that are free to vary after a sample statistic has been computed, and tell the researcher which specific curve to use when a distribution consists of a family of curves. For example: If the mean of 5 values is 10, then 4 of the 5 values are free to vary. But once 4 values are selected, the fifth value must be a specific number to get the sum of 50, since 50/5 = 10. Hence, the degrees of freedom are 5 – 1 = 4, and this tells the researcher which curve to use.

d.f. Formula The formula for finding the degrees of freedom for the confidence interval of a mean is simply d.f. = n – 1

Using Table F Find the tα/2 value for a 95% confidence interval when the sample size is 22. Degrees of freedom are d.f. = 21.

Formula for a Specific Confidence Interval for the Mean When σ Is Unknown and n < 30 The degrees of freedom are n – 1.

Example #1- Commuting Time A sample of 14 commuters in Chicago showed the average of the commuting time was 33.2 minutes. If the standard deviation of the sample was 8.3 minutes, fine the 95% confidence interval of the true mean.

Example #2 - Sleeping Time Ten randomly selected people were asked how long they slept at night. The mean time was 7.1 hours, and the standard deviation was 0.78 hour. Find the 95% confidence interval of the mean time. Assume the variable is normally distributed.

Example #3 - Home Fires by Candles The data represent a sample of the number of home fires started by candles for the past several years. Find the 99% confidence interval for the mean number of home fires started by candles each year. 5460 5900 6090 6310 7160 8440 9930

Example #4 Poll Everywhere poll on sleep last night. Link to Poll What is the mean and standard deviation for our sample? What is the degrees of freedom for our sample? Find a 90% confidence interval of the mean time. Assume the situation is normally distributed.