Interval Estimation

# Interval Estimation - 1 Slide x x x x μ Chapter 8 Interval...

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Unformatted text preview: 1 Slide [--------------------- ---------------------] x x [--------------------- ---------------------] [--------------------- ---------------------] x x μ Chapter 8 Interval Estimation ■ Interval Estimation of a Population Mean: Large-Sample Case ■ Interval Estimation of a Population Mean: Small-Sample Case ■ Determining the Sample Size ■ Interval Estimation of a Population Proportion 2 Slide Interval Estimation of a Population Mean: Large-Sample Case ■ Sampling Error ■ Probability Statements about the Sampling Error ■ Constructing an Interval Estimate: Large-Sample Case with σ Known ■ Calculating an Interval Estimate: Large-Sample Case with σ Unknown 3 Slide Probability Statements About the Sampling Error ■ Knowledge of the sampling distribution of enables us to make probability statements about the sampling error even though the population mean μ is not known. ■ A probability statement about the sampling error is a precision statement . x 4 Slide ■ Precision Statement There is a 1 - α probability that the value of a sample mean will provide a sampling error of or less. Probability Statements About the Sampling Error μ α /2 α /2 1 - α of all values x z x α σ /2 Sampling distribution of x x 5 Slide Interval Estimate of a Population Mean: Large-Sample Case ( n > 30) ■ With σ Known where: is the sample mean 1 - α is the confidence coefficient z α /2 is the z value providing an area of α /2 in the upper tail of the standard normal probability distribution σ is the population standard deviation n is the sample size x z n ± α σ /2 x 6 Slide Interval Estimate of a Population Mean: Large-Sample Case ( n > 30) ■ With σ Unknown In most applications the value of the population standard deviation is unknown. We simply use the value of the sample standard deviation, s , as the point estimate of the population standard deviation. x z s n ± α /2 7 Slide National Discount has 260 retail outlets throughout the United States. National evaluates each potential location for a new retail outlet in part on the mean annual income of the individuals in the marketing area of the new location....
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## This note was uploaded on 03/03/2012 for the course MGMT 305 taught by Professor Priya during the Spring '08 term at Purdue.

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Interval Estimation - 1 Slide x x x x μ Chapter 8 Interval...

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