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WARM - UP 1. How do you interpret a Confidence Interval?

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1 WARM - UP 1. How do you interpret a Confidence Interval?
We are C% confident (sure) that the true proportion/average of the population for this study is between x1 and x2. 2. How do you interpret a Confidence Level? If we obtained many samples of this similar size, we can expect that C% of them will produce an interval that captures the true average of the population for this study. 3. What is the z* for a 95%Confidence Level? z95* = This is called a critical value

2 Chapter 23 t – DISTRIBUTIONS (Means)
When we are unrealistically given the known population standard deviation ‘σ’, we use the standard normal distribution = z – test statistic: BUT…The Std. Dev, σ is usually unknown and has to be estimated. This estimate is called the Standard Error = Inferences based on unknown σ (usually samples less than n=30) are made with the t–distribution (t – test statistic) There is a different t-distribution for each sample size P-values are computed with ‘degrees of freedom’. Degree of Freedom: df = n – 1 (Sample Size – 1)

3 Finding Probability from t :
The Test Statistic for a Test of the Hypothesis: H0: μ = μ0 with an unknown population σ is computed by: The P-Value is then computed by: Ha: μ > μ0 P( T ≥ t0 ) tcdf(t, E99, df) Ha: μ < μ0 P( T ≤ t0 ) tcdf(-E99, t, df) Ha: μ ≠ μ0 2P( T ≥ |t0| ) 2·tcdf(|t|, E99, df) P-Val. = t

4 The P-Value is then computed by:
Ha: μ > μ0 P( T ≥ t0 ) tcdf(t, E99, df) Ha: μ < μ0 P( T ≤ t0 ) tcdf(-E99, t, df) Ha: μ ≠ μ0 2P( T ≥ |t0| ) 2·tcdf(|t|, E99, df) EXAMPLES: Use Calculator 2nd Vars #6 tcdf Find the P-Value for t ≥ 2.58 with 12 degrees of freedom. Find the P-Value for | t | > 1.62 with 20 degrees of freedom. 3. Find the P-Value for t ≤ 0.67 with a sample size of 4. tcdf(2.58, E99, 12) = P-Val = 2∙tcdf(1.62, E99, 20) = P-Val = tcdf(-E99, 0.67, 3) = P-Val = 0.725

5 Computing the critical value - t* from Probability:
TABLE B: Find the intersection of the Probability (to the Right) on the top row or Confidence Level on the bottom row with the appropriate degree of freedom. CALCULATOR: Use 2nd Vars #4 INV T (Probability to the Left, df) EXAMPLES: 1. Find the critical value t* for a t statistic from a SRS of 28 observation with probability of .80 to the left. 2. Find the critical value t* for a t statistic from a SRS of 38 observation with probability of .025 to the right. INV T(.8,27) t = 0.855 t = 2.021 INV T(.975,37) t = 2.026

6 Computing the critical value - t
Computing the critical value - t* from Confidence Levels: Find the probablity to the left by: CALCULATOR: Use 2nd Vars #4 INV T (Probability to the left, df) Make the Answer Positive. EXAMPLES: 1. Find the critical value t* for a 95% confidence interval with a sample size of 15. 2. Find the critical value t* for a 90% confidence interval with a sample size of 9. INV T(.025,14) t = 2.145 INV T(.05,8) t = 1.860

7 HW: Page 541: #1,2, 5,6,9

8 HW: Page Page 541: #1,2, 5,6,9

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