1. Section 6.2 Confidence Intervals for the Mean (Small Samples) © 2012 Pearson Education, Inc. All rights reserved. 1 of 83

2. Section 6.2 Objectives Interpret the t-distribution and use a t- distribution table Construct confidence intervals when n < 30, the population is normally distributed, and σ is unknown © 2012 Pearson Education, Inc. All rights reserved. 2 of 83

3. The t-Distribution When the population standard deviation is unknown, the sample size is less than 30, and the random variable x is approximately normally distributed, it follows a t-distribution. Critical values of t are denoted by t c. © 2012 Pearson Education, Inc. All rights reserved. 3 of 83

4. Properties of the t-Distribution 1.The t-distribution is bell shaped and symmetric about the mean. 2.The t-distribution is a family of curves, each determined by a parameter called the degrees of freedom. The degrees of freedom are the number of free choices left after a sample statistic such as is calculated. When you use a t-distribution to estimate a population mean, the degrees of freedom are equal to one less than the sample size. – d.f. = n – 1 Degrees of freedom © 2012 Pearson Education, Inc. All rights reserved. 4 of 83

5. Properties of the t-Distribution 3.The total area under a t-curve is 1 or 100%. 4.The mean, median, and mode of the t-distribution are equal to zero. 5.As the degrees of freedom increase, the t-distribution approaches the normal distribution. After 30 d.f., the t- distribution is very close to the standard normal z- distribution. t 0 Standard normal curve The tails in the t- distribution are “thicker” than those in the standard normal distribution. d.f. = 5 d.f. = 2 © 2012 Pearson Education, Inc. All rights reserved. 5 of 83

6. Example: Critical Values of t Find the critical value t c for a 95% confidence when the sample size is 15. Table 5: t-Distribution t c = 2.145 Solution: d.f. = n – 1 = 15 – 1 = 14 © 2012 Pearson Education, Inc. All rights reserved. 6 of 83

7. Solution: Critical Values of t 95% of the area under the t-distribution curve with 14 degrees of freedom lies between t = +2.145. t -t c = -2.145 t c = 2.145 c = 0.95 © 2012 Pearson Education, Inc. All rights reserved. 7 of 83

8. Confidence Intervals for the Population Mean A c-confidence interval for the population mean μ The probability that the confidence interval contains μ is c. © 2012 Pearson Education, Inc. All rights reserved. 8 of 83

9. Confidence Intervals and t-Distributions 1.Identify the sample statistics n,, and s. 2.Identify the degrees of freedom, the level of confidence c, and the critical value t c. 3.Find the margin of error E. d.f. = n – 1 In WordsIn Symbols © 2012 Pearson Education, Inc. All rights reserved. 9 of 83

10. Confidence Intervals and t-Distributions 4.Find the left and right endpoints and form the confidence interval. Left endpoint: Right endpoint: Interval: In WordsIn Symbols © 2012 Pearson Education, Inc. All rights reserved. 10 of 83

11. Example: Constructing a Confidence Interval You randomly select 16 coffee shops and measure the temperature of the coffee sold at each. The sample mean temperature is 162.0ºF with a sample standard deviation of 10.0ºF. Find the 95% confidence interval for the mean temperature. Assume the temperatures are approximately normally distributed. Solution: Use the t-distribution (n < 30, σ is unknown, temperatures are approximately distributed.)

12. Solution: Constructing a Confidence Interval n =16, x = 162.0 s = 10.0 c = 0.95 df = n – 1 = 16 – 1 = 15 Critical Value Table 5: t-Distribution t c = 2.131 © 2012 Pearson Education, Inc. All rights reserved. 12 of 83

13. Solution: Constructing a Confidence Interval Margin of error: Confidence interval: Left Endpoint:Right Endpoint: 156.7 < μ < 167.3 © 2012 Pearson Education, Inc. All rights reserved. 13 of 83

14. Solution: Constructing a Confidence Interval 156.7 < μ < 167.3 ( ) 162.0 156.7167.3 With 95% confidence, you can say that the mean temperature of coffee sold is between 156.7 ºF and 167.3 ºF. Point estimate © 2012 Pearson Education, Inc. All rights reserved. 14 of 83

15. No Normal or t-Distribution? Is n  30? Is the population normally, or approximately normally, distributed? Cannot use the normal distribution or the t-distribution. Yes Is  known? No Use the normal distribution with If  is unknown, use s instead. YesNo Use the normal distribution with Yes Use the t-distribution with and n – 1 degrees of freedom. © 2012 Pearson Education, Inc. All rights reserved. 15 of 83

16. Example: Normal or t-Distribution? You randomly select 25 newly constructed houses. The sample mean construction cost is $181,000 and the population standard deviation is $28,000. Assuming construction costs are normally distributed, should you use the normal distribution, the t-distribution, or neither to construct a 95% confidence interval for the population mean construction cost? Solution: Use the normal distribution (t he population is normally distributed and the population standard deviation is known) © 2012 Pearson Education, Inc. All rights reserved. 16 of 83

17. Section 6.2 Summary Interpreted the t-distribution and used a t- distribution table Constructed confidence intervals when n < 30, the population is normally distributed, and σ is unknown © 2012 Pearson Education, Inc. All rights reserved. 17 of 83