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CONFIDENCE INTERVALS A confidence interval is an interval in which we are certain to a given probability of the mean lying in that interval. For example.

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Presentation on theme: "CONFIDENCE INTERVALS A confidence interval is an interval in which we are certain to a given probability of the mean lying in that interval. For example."— Presentation transcript:

1 CONFIDENCE INTERVALS A confidence interval is an interval in which we are certain to a given probability of the mean lying in that interval. For example if a 95% confidence interval is given, then 95% of the intervals would contain a true mean. We used z-interval with normal distribution or CLT where the standard deviation of the population was known. From a sample we usually don’t know anything about the population. So we use the t-distribution in theses situations and t-interval. use sample mean and unbiased estimate of standard deviation. As n increases, t - distribution becomes closer to normal distribution.

2 Examples how to use t-distribution.
To use t-distribution we need to know the sample size n. The first step is to calculate the number of degrees of freedom Example 2: If n =7, find the value of t such that P(T<t)=0.90. The GDC symbol for degrees of freedom is df. Example 1: Find P(-2<T<4) if n=3.

3 Confidence intervals Again if the standard deviation of the population is NOT known, and has to be estimated from the sample, then the distribution is altered to that of a Student-t distribution. Example 1 Example 2 parts a and b only, without hypothesis testing yet.

4 Example 3 (given confidence interval, find confidence level).

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9 (a) Determine unbiased estimates for µ and σ2.
Paper 3 Exam Question Anna cycles to her new school. She records the times taken for the first ten days with the following results (in minutes). Assume that these times are a random sample from the N(µ, σ2) distribution. (a) Determine unbiased estimates for µ and σ2. (2) (b) Calculate a 95 % confidence interval for µ. (3) (a) estimate of μ = A1 estimate of σ2 = A1 (b) using a GDC (or otherwise), the 95% confidence interval is (M1) [12.6, 13.6] A1A1 Note: Accept open or closed intervals.


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