LCT11 - 1 Introduction to Business Statistics Lecture 11...

Info iconThis preview shows pages 1–4. 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

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: 1 Introduction to Business Statistics Lecture 11 Computation of Confidence Intervals From Bounds on Error of Estimation to Confidence Intervals: Intervals Confidence ) 96 . 1 96 . 1 ( Estimation of Error ) 96 . 1 96 . 1 ( on Distributi Sampling ) 96 . 1 96 . 1 ( 95 . n X n X P n X n P n X n P σ μ σ σ μ σ σ μ σ μ + ≤ ≤ − = ≤ − ≤ − = + ≤ ≤ − = 2 A )% 1 ( 100 α − Confidence Interval : n z x z x x σ σ α α 2 / 2 / ± = ± • Lower confidence limit: n z x z x x σ σ α α 2 / 2 / − = − • Upper confidence limit: n z x z x x σ σ α α 2 / 2 / + = + • Confidence coefficient: ) 1 ( α − • Critical value 2 / α z : 2 / } { 2 / α α = > z Z P , the value that cuts off a right tail probability of 2 / α from the standard norm distribution. ⎪ ⎩ ⎪ ⎨ ⎧ = = − = = − = = − = 0.5% 2 / or 99% 1 if 2.58 2.5% 2 / or 95% 1 if 1.96 5% 2 / or 90% 1 if 1.645 2 / α α α α α α α z 3 Interpretation of confidence coefficient: After obtaining a 95% confidence interval from a given sample (a pair...
View Full Document

This note was uploaded on 11/23/2010 for the course BBA ISOM111 taught by Professor Hu during the Fall '08 term at HKUST.

Page1 / 9

LCT11 - 1 Introduction to Business Statistics Lecture 11...

This preview shows document pages 1 - 4. Sign up to view the full document.

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