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Confidence Interval

The document discusses key concepts related to confidence intervals for estimating population means. It defines confidence intervals as a range of values used to estimate unknown parameters, and explains that the confidence level refers to the probability that the true parameter is contained within the estimated interval. Common confidence levels of 90%, 95%, and 99% are described. A four step process for computing confidence intervals is also outlined, including specifying the population parameter, assumptions, test statistic, confidence level, collecting sample data, and determining the confidence limits.

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Angelyn Taberna Natividad
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© © All Rights Reserved
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209 views

Confidence Interval

The document discusses key concepts related to confidence intervals for estimating population means. It defines confidence intervals as a range of values used to estimate unknown parameters, and explains that the confidence level refers to the probability that the true parameter is contained within the estimated interval. Common confidence levels of 90%, 95%, and 99% are described. A four step process for computing confidence intervals is also outlined, including specifying the population parameter, assumptions, test statistic, confidence level, collecting sample data, and determining the confidence limits.

Uploaded by

Angelyn Taberna Natividad
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Understanding

Confidence Interval
Estimates
for the
Population Mean
when is known or
Prepared By: Angelyn T. Natividad,
Entry Card

1. What do you call a continuous,


symmetric and bell shaped
distribution of a variable
A.Graph
B.Pie
C.Normal distribution
D.Line graph
Entry Card

2. What values are indicate at the


base of a normal distribution
A. z
B. t
C. R
D. s
Entry Card

3. The area under the curve is


A. 1
B. 0.99
C. 0.95
D. 0.5
Entry Card
4 In the standard normal distribution
, the mean ____ and the
standard deviation is ____
A. 1, 0
B. 0,1
C. 1,1
D. 0,0
Entry Card
5. In the standard normal
deviation, what percent of the
area falls below the mean ?
A. 95%
B. 90 %
C. 68%
D. 50%
Entry Card
6.Under the standard normal
distribution , what is the z
value that corresponds to an
area of 0.4750 ?
Activity
Suppose you want to know the true
average weight of all the students in the
population where the students this class
belong .
Task from the five groups
Find the weight in kgs of each group
member carefully
Compute the mean weight and the
standard deviation of each group
Ask the average weight of each group
then,
Analysis
How would you describe your
group based on the result of the
computation?
What is the estimation of the
mean of the population where
your group belongs?
Reflect on your estimation. Are
you confident about it? To what
extent are you confident? Express
your confident as a percentage
Confidence
Interval
An interval estimate, called
confidence interval, is a
range of values that is used
to estimate the parameter.
This estimate may or may
not contain the true
parameter value
Confidence
Level
The confidence level of an
interval estimate of the
parameter is the probability that
the interval estimates contains
the parameter. It describe what
percentages of interval from
many different samples that
contain the unknown population
parameter. This estimate may or
may not contain the value of the
Confidence
Level
Three common confidence
intervals are used : the 90%,
the 95% and the 99%
confidence intervals
Example: 95 % confidence level
or 5% or 0.05 ( chance of

rejection)


Example : 90 % confidence
level or 10% or 0.10

( chance of rejection)



Example
Example
: 99 % confidence level or
1% or 0.01 ( chance of rejection)
Critical Values
For another level of
confidence interval, the
corresponding z- values
can be found in the z table.
These z values are also
called confidence
coefficients. They are
Recall
also that for large sample
values, the central limit theorem
applies, that is the sample size n
increases without limit, the shape of
the distribution will approach a
normal distribution
Formula for the confidence interval
of the mean for a specific

Lower Upper
confidenc confidenc
e e
boundary boundary
or limit or limit
Margin of error
In
the general formula for confidence
interval, the term is called margin
of error , denoted by E, which is
defined as the maximum likely
difference between the observed
sample mean and true value of the
population mean
A Four step Process in computing the
Interval Estimate
Step 1: Describe the population parameter of
interest ( e.g mean)
Step 2: Specify the confidence interval criteria
A.Check the assumption
B.Determine the test statistic to be used
C.State the level of confidence
.Step 3: Collect and present sample evidence
A. Collect the sample information
B. Find the point estimate
A Four step Process in computing the
Interval Estimate
Step 4: determine the confidence
interval
A. Determine the confidence
coefficients
B. Find the maximum error E of the
estimate
C. Find the lower and upper confidence
limits
D. Describe and interpret the result
A
random sample of 100 students
are asked how much they spend for
a meal during weekdays. The
average expenses is found to be
php. 75. past experince has revealed
that the population standard
deviation of php. 5. find the point
estimate of the interval estimate of
the population mean % confidence
level
Solution
Step Solution
1. describe the The parameter of interest is
population the population mean ( )
parameter of where the sample came
interest ( e.g mean) from
2. Specify the confidence interval criteria
A.Check the The sample size is 100
assumption students is large enough for
Central Limit Theorem (CLT),
so the sampling distribution
of means is normal
B. Determine the The Test Statistic is z, using
test statistic to be
used
C. State the level of 95 % confidence level ,
Solution
Step Solution
3. Collect and present sample evidence
A.Collect the sample
information
B.Find the point
estimate
4. determine the confidence interval
Determine
Determine The confidence coefficient is
the
the
confidence
confidence
coefficients
coefficients
Find the
Find the
maximum
maximum
error E of the
error E of the
Find the lower
Find the lower
and upper

and upper
confidence
confidence
limits
limits
Describe and With the 95 % confidence then the interval
Describe and With the 95
between % 74.02
Php. confidence then75.98
and Php. the interval
contain the
interpret the between Php. 74.02 and Php. 75.98 contain the
interpret the population mean based on the 100 students
result population
expenses mean based on the 100 students
A researcher wants to estimate the
number of hours that a 5 year old
children spend watching television .
A sample of 50 five year old children
was observed to have a mean
viewing time of 3 hours. The
population is normally distributed
with a population S. D 0.05 having
95 % confidence interval
Quiz 2
Z-
distribution
Quiz

Find
the critical values for
each
1. for the 92 % confidence
Interval
2. for the 98 % confidence
Interval
Quiz

The dean of a large university wishes


to estimate the average age of
students presently enrolled. From
past studies, the standard deviation
of known to 2 years. A sample of 50
students is selected and the mean is
found to be 19.2 years old . Find the
99 % confidence interval of the
population mean
ANSWER

Find the critical values for each


1. for the 92 % confidence Interval

0.5000 -- 0.4=
4%= 0.4 0.4600
4%= 0.4



ANSWER

Find the critical values for each


2. for the 98 % confidence
Interval

0.5000 -- 0.1=
1%= 0.10
0.4900
1%= 0.1



Step Solution
1. describe the The parameter of interest is
population the population mean ( )
parameter of where the sample came
interest ( e.g mean) from
2. Specify the confidence interval criteria
A.Check the The sample size is 50
assumption students is large enough for
Central Limit Theorem (CLT),
so the sampling distribution
of means is normal
B. Determine the The Test Statistic is z, using
test statistic to be
used
C. State the level of 99 % confidence level ,
Step Solution
3. Collect and present sample evidence
A.Collect the sample
information
B.Find the point
estimate
4. determine the confidence interval
Determine
Determine The confidence coefficient is
the
the
confidence
confidence
coefficients
coefficients
Find the
Find the
maximum
maximum
error E of the
error E of the
Find the lower
Find the lower
and upper
and upper
confidence
confidence
limits
limits
Describe and With the 95 % confidence then the interval
Describe and With the 95
between % 74.02
Php. confidence then75.98
and Php. the interval
contain the
interpret the between Php. 74.02 and Php. 75.98 contain the
interpret the population mean based on the 100 students
result population
expenses mean based on the 100 students

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