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Chapter 12 Book Notes

# Chapter 12 Book Notes - FinOp 250 Chapter 12 Book Notes...

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own and the population is normal. This is Student t distributed with v = n – 1 degrees of freedom. x = xin s2= i2x-(xi)2nn-1 FinOp 250 Chapter 12 Book Notes INFERENCE ABOUT A POPULATION MEAN WHEN THE STANDARD DEVIATION IS UNKNOWN The confidence interval estimator and the test statistic were derived from the sampling distribution of the sample mean with known, expressed as σ = z - / x μσ n Now, we take the approach that if the population mean in unknown, so is the population standard deviation. We substitute the sample standard deviation “s” in the place of the unknown population standard deviation ” ”. σ Test Statistic for μ when is unknown: σ = t - / x μs n Confidence Interval Estimator of μ when is unknown: σ ± / = - x tα 2 sn v n 1 Checking the required conditions The mathematical process that derived the Student t distribution is robust, which means

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Chapter 12 Book Notes - FinOp 250 Chapter 12 Book Notes...

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