ClassNotes5_26_08

ClassNotes5_26_08 - CHAPTER 10 Confidence Intervals There...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: CHAPTER 10 Confidence Intervals There are two types of estimators in statistcis POINT estimate and INTERVAL estimates A (1 - α) x 100% Confidence Interval for μ Assumptions: 1. Normal Population 2. σ is Known For a 95% Confidence Interval, Zα/2 =1.96 => α=.05 => α/2 = 0.025 0.48 0.48 α/2=0.025 α/2=0.025 0.95 Z α/2 Z α/2 10.22 page 319 n= 8, σ=10, 1-α=.95 Ages are as follows: 52, 68, 22, 35, 30, 56, 39, 48 = 43.75+/-6.9 Zα/2 =1.96 => α=.05 If asked to do a 93% interval it would be narrower The higher the confidence interval, the wider that interval gets At 99%, you'd be more confident in it, but have less info on μ 1-α is called a confidence level is called a significance level. +- n Z X n Z X σ σ α α * , * 2 2 n Z X σ α ± 2 8 10 96 . 1 75 . 43 ± n X X n i i ∑- = 1 7 5 . 4 3 8 3 5 0 1 = = = ∑- n X X n i i For 93% interval: Confidence Interval, 1-α=.93, α=.07 => α/2 = 0.035 =>Zα/2 = 1.81 43.75+/-6.46 [37.35, 50.15] **** Important Point--Confidence Intervals are ALWAYS two sided (two-tai...
View Full Document

This note was uploaded on 10/21/2008 for the course MBA 803 taught by Professor Cantrell during the Spring '08 term at Clemson.

Page1 / 10

ClassNotes5_26_08 - CHAPTER 10 Confidence Intervals There...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online