Transcript Ch7a
Chapter 7 Confidence Intervals and Sample Sizes 7.2 Estimating a Proportion p 7.3 Estimating a Mean µ (σ known) 7.4 Estimating a Mean µ (σ unknown) 7.5 Estimating a Standard Deviation σ Copyright © 2010, 2007, 2004 Pearson Education, Inc. All Rights Reserved. 1 Example 1 In a recent poll, 70% or 1501 randomly selected adults said they believed in global warming. Q: What is the proportion of the adult population that believe in global warming? TRICK QUESTION! We only know the sample proportion s, We do not know the population proportion σ. BUT… The proportion of the sample (0.7) is our best point estimate (i.e. best guess). Copyright © 2010, 2007, 2004 Pearson Education, Inc. All Rights Reserved. 2 Definition Point Estimate A single value (or point) used to approximate a population parameter Best Point Estimate Population Parameter Proportion p ≈ p Mean µ ≈ x Std. Dev. σ ≈ s Copyright © 2010, 2007, 2004 Pearson Education, Inc. All Rights Reserved. 3 Definition Confidence Interval : CI The range (or interval) of values to estimate the true value of a population parameter. It is abbreviated as CI In Example 1, the 95% confidence interval for the population proportion p is CI = (0.677, 0.723) Copyright © 2010, 2007, 2004 Pearson Education, Inc. All Rights Reserved. 4 Definition Confidence Level : 1 – α The probability that the confidence interval actually contains the population parameter. The most common confidence levels used are 90%, 95%, 99% 90% : α=0.1 95% : α=0.05 99% : α=0.01 In Example 1, the Confidence level is 95% Copyright © 2010, 2007, 2004 Pearson Education, Inc. All Rights Reserved. 5 Definition Margin of Error : E The maximum likely difference between the observed value and true value of the population parameter (with probability is 1–α) The margin of error is used to determine a confidence interval (of a proportion or mean) In Example 1, the 95% margin of error for the population proportion p is E = 0.023 Copyright © 2010, 2007, 2004 Pearson Education, Inc. All Rights Reserved. 6 Example 1 Continued… In a recent poll, 70% or 1501 randomly selected adults said they believed in global warming. Q: What is the proportion of the adult population that believe in global warming? A: 0.7 is the best point estimate of the proportion of all adults who believe in global warming. The 95% confidence interval of the population proportion p is: CI = (0.677, 0.723) ( with a margin of error E = 0.023 ) What does it mean, exactly? Copyright © 2010, 2007, 2004 Pearson Education, Inc. All Rights Reserved. 7 Interpreting a Confidence Interval For the 95% confidence interval CI = (0.677, 0.723) we say: We are 95% confident that the interval from 0.677 to 0.723 actually does contain the true value of the population proportion p. This means that if we were to select many different samples of size 1501 and construct the corresponding confidence intervals, then 95% of them would actually contain the value of the population proportion p. Copyright © 2010, 2007, 2004 Pearson Education, Inc. All Rights Reserved. 8 !!! Caution !!! Know the correct interpretation of a confidence interval It is incorrect to say “ the probability that the population parameter belongs to the confidence interval is 95% ” because the population parameter is not a random variable, its value cannot change The population is “set in stone” Copyright © 2010, 2007, 2004 Pearson Education, Inc. All Rights Reserved. 9 !!! Caution !!! Do not confuse the two percentages The proportion can be represented by percents (like 70% in Example 1) The confidence level may be represented by percents (like 95% in Example 1) Proportions can be any value from 0% to 100% Confidence levels are usually 90%, 95%, or 99% Copyright © 2010, 2007, 2004 Pearson Education, Inc. All Rights Reserved. 10 Confidence Interval Formula ( y – E, y + E ) y = Best point estimate E = Margin of Error • Centered at the best point estimate • Width is determined by E The value of E depends the critical value of the CI Copyright © 2010, 2007, 2004 Pearson Education, Inc. All Rights Reserved. 11 Finding the Point Estimate and E from a Confidence Interval Point estimate : y y = (upper confidence limit) + (lower confidence limit) 2 Margin of Error : E E = (upper confidence limit) — (lower confidence limit) 2 Copyright © 2010, 2007, 2004 Pearson Education, Inc. All Rights Reserved. 12 Definition Critical Value The number on the borderline separating sample statistics that are likely to occur from those that are unlikely to occur. A critical value is dependent on a probability distribution the parameter follows and the confidence level (1 – α) . Copyright © 2010, 2007, 2004 Pearson Education, Inc. All Rights Reserved. 13 Normal Dist. Critical Values For a population proportion p and mean µ (σ known), the critical values are found using z-scores on a standard normal distribution The standard normal distribution is divided into three regions: middle part has area 1 – α and two tails (left and right) have area α/2 each: Copyright © 2010, 2007, 2004 Pearson Education, Inc. All Rights Reserved. 14 Normal Dist. Critical Values The z-scores za/2 and –za/2 separate the values: Likely values ( middle interval ) Unlikely values ( tails ) Use StatCrunch to calculate z-scores (see Ch. 6) –za/2 Copyright © 2010, 2007, 2004 Pearson Education, Inc. All Rights Reserved. za/2 15 Normal Dist. Critical Values The value za/2 separates an area of a/2 in the right tail of the z-dist. The value –za/2 separates an area of a/2 in the left tail of the z-dist. The subscript a/2 is simply a reminder that the zscore separates an area of a/2 in the tail. Copyright © 2010, 2007, 2004 Pearson Education, Inc. All Rights Reserved. 16 Section 7.2 Estimating a Population Proportion Objective Find the confidence interval for a population proportion p Determine the sample size needed to estimate a population proportion p Copyright © 2010, 2007, 2004 Pearson Education, Inc. All Rights Reserved. 17 Definitions The best point estimate for a population proportion p is the sample proportion p Best point estimate : p The margin of error E is the maximum likely difference between the observed value and true value of the population proportion p (with probability is 1–α) Copyright © 2010, 2007, 2004 Pearson Education, Inc. All Rights Reserved. 18 Margin of Error for Proportions E za 2 ˆˆ pq n E = margin of error p = sample proportion q=1–p n = number sample values 1 – α = Confidence Level Copyright © 2010, 2007, 2004 Pearson Education, Inc. All Rights Reserved. 19 Confidence Interval for a Population Proportion p ( pˆ – E, pˆ + E ) where E za 2 Copyright © 2010, 2007, 2004 Pearson Education, Inc. All Rights Reserved. ˆˆ pq n 20 Finding the Point Estimate and E from a Confidence Interval Point estimate of p: p = (upper confidence limit) + (lower confidence limit) 2 Margin of Error: E = (upper confidence limit) — (lower confidence limit) 2 Copyright © 2010, 2007, 2004 Pearson Education, Inc. All Rights Reserved. 21 Round-Off Rule for Confidence Interval Estimates of p Round the confidence interval limits for p to three significant digits. Copyright © 2010, 2007, 2004 Pearson Education, Inc. All Rights Reserved. 22 Example 1 Find the 95%confidence interval for the population proportion If a sample of size 100 has a proportion 0.67 Direct Computation Copyright © 2010, 2007, 2004 Pearson Education, Inc. All Rights Reserved. 23 Example 1 Find the 95%confidence interval for the population proportion If a sample of size 100 has a proportion 0.67 Using StatCrunch Stat → Proportions → One Sample → with Summary Copyright © 2010, 2007, 2004 Pearson Education, Inc. All Rights Reserved. 24 Example 1 Find the 95%confidence interval for the population proportion If a sample of size 100 has a proportion 0.67 Using StatCrunch Enter Values Copyright © 2010, 2007, 2004 Pearson Education, Inc. All Rights Reserved. 25 Example 1 Find the 95%confidence interval for the population proportion If a sample of size 100 has a proportion 0.67 Using StatCrunch Click ‘Next’ Copyright © 2010, 2007, 2004 Pearson Education, Inc. All Rights Reserved. 26 Example 1 Find the 95%confidence interval for the population proportion If a sample of size 100 has a proportion 0.67 Using StatCrunch Select ‘Confidence Interval’ Copyright © 2010, 2007, 2004 Pearson Education, Inc. All Rights Reserved. 27 Example 1 Find the 95%confidence interval for the population proportion If a sample of size 100 has a proportion 0.67 Using StatCrunch Enter Confidence Level, then click ‘Calculate’ Copyright © 2010, 2007, 2004 Pearson Education, Inc. All Rights Reserved. 28 Example 1 Find the 95%confidence interval for the population proportion If a sample of size 100 has a proportion 0.67 Using StatCrunch Standard Error Lower Limit Upper Limit From the output, we find the Confidence interval is CI = (0.578, 0.762) Copyright © 2010, 2007, 2004 Pearson Education, Inc. All Rights Reserved. 29 Sample Size Suppose we want to collect sample data in order to estimate some population proportion. The question is how many sample items must be obtained? Copyright © 2010, 2007, 2004 Pearson Education, Inc. All Rights Reserved. 30 Determining Sample Size za / 2 E= p ˆ qˆ n (solve for n by algebra) n= ( Za / 2)2 p ˆ ˆq E2 Copyright © 2010, 2007, 2004 Pearson Education, Inc. All Rights Reserved. 31 Sample Size for Estimating Proportion p ˆ When an estimate of p is known: n= ( za / 2 )2 pˆ qˆ E2 When no estimate of p ˆ is known: use p ˆ = qˆ = 0.5 2 ( ) n= za / 2 Copyright © 2010, 2007, 2004 Pearson Education, Inc. All Rights Reserved. 0.25 E2 32 Round-Off Rule for Determining Sample Size If the computed sample size n is not a whole number, round the value of n up to the next larger whole number. Examples: n = 310.67 n = 295.23 n = 113.01 round up to 311 round up to 296 round up to 114 Copyright © 2010, 2007, 2004 Pearson Education, Inc. All Rights Reserved. 33 Example 2 A manager for E-Bay wants to determine the current percentage of U.S. adults who now use the Internet. How many adults must be surveyed in order to be 95% confident that the sample percentage is in error by no more than three percentage points when… (a) In 2006, 73% of adults used the Internet. (b) No known possible value of the proportion. Copyright © 2010, 2007, 2004 Pearson Education, Inc. All Rights Reserved. 34 Example 2 (a) Given: Given a sample has proportion of 0.73, To be 95% confident that our sample proportion is within three percentage points of the true proportion, we need at least 842 adults. Copyright © 2010, 2007, 2004 Pearson Education, Inc. All Rights Reserved. 35 Example 2 (b) Given: For any sample, To be 95% confident that our sample proportion is within three percentage points of the true proportion, we need at least 1068 adults. Copyright © 2010, 2007, 2004 Pearson Education, Inc. All Rights Reserved. 36 Summary Confidence Interval of a Proportion E = margin of error p = sample proportion n = number sample values 1 – α = Confidence Level E za 2 ˆˆ pq n ( p – E, p + E ) Copyright © 2010, 2007, 2004 Pearson Education, Inc. All Rights Reserved. 37 Summary Sample Size for Estimating a Proportion When an estimate of p is known: n= ( za / 2 )2 pˆ qˆ E2 When no estimate of p is known (use p = q = 0.5) n= ( za / 2)2 0.25 E2 Copyright © 2010, 2007, 2004 Pearson Education, Inc. All Rights Reserved. 38 Section 7.3 Estimating a Population mean µ (σ known) Objective Find the confidence interval for a population mean µ when σ is known Determine the sample size needed to estimate a population mean µ when σ is known Copyright © 2010, 2007, 2004 Pearson Education, Inc. All Rights Reserved. 39 Best Point Estimation The best point estimate for a population mean µ (σ known) is the sample mean x Best point estimate : x Copyright © 2010, 2007, 2004 Pearson Education, Inc. All Rights Reserved. 40 Notation = population mean = population standard deviation x = sample mean n = number of sample values E = margin of error za/2 = z-score separating an area of α/2 in the right tail of the standard normal distribution Copyright © 2010, 2007, 2004 Pearson Education, Inc. All Rights Reserved. 41 Requirements (1) The population standard deviation σ is known (2) One or both of the following: The population is normally distributed or n > 30 Copyright © 2010, 2007, 2004 Pearson Education, Inc. All Rights Reserved. 42 Margin of Error Copyright © 2010, 2007, 2004 Pearson Education, Inc. All Rights Reserved. 43 Confidence Interval ( x – E, x + E ) where Copyright © 2010, 2007, 2004 Pearson Education, Inc. All Rights Reserved. 44 Definition The two values x – E and x + E are called confidence interval limits. Copyright © 2010, 2007, 2004 Pearson Education, Inc. All Rights Reserved. 45 Round-Off Rules for Confidence Intervals Used to Estimate µ 1. When using the original set of data, round the confidence interval limits to one more decimal place than used in original set of data. 2. When the original set of data is unknown and only the summary statistics (n, x, s) are used, round the confidence interval limits to the same number of decimal places used for the sample mean. Copyright © 2010, 2007, 2004 Pearson Education, Inc. All Rights Reserved. 46 Example Find the 90% confidence interval for the population mean If the population standard deviation is known to be 10 and a sample of size 42 has a mean of 38.4 Direct Computation Copyright © 2010, 2007, 2004 Pearson Education, Inc. All Rights Reserved. 47 Example Find the 90% confidence interval for the population mean If the population standard deviation is known to be 10 and a sample of size 42 has a mean of 38.4 Using StatCrunch Stat → Z statistics → One Sample → with Summary Copyright © 2010, 2007, 2004 Pearson Education, Inc. All Rights Reserved. 48 Example Find the 90% confidence interval for the population mean If the population standard deviation is known to be 10 and a sample of size 42 has a mean of 38.4 Using StatCrunch Enter Parameters Copyright © 2010, 2007, 2004 Pearson Education, Inc. All Rights Reserved. 49 Example Find the 90% confidence interval for the population mean If the population standard deviation is known to be 10 and a sample of size 42 has a mean of 38.4 Using StatCrunch Click Next Copyright © 2010, 2007, 2004 Pearson Education, Inc. All Rights Reserved. 50 Example Find the 90% confidence interval for the population mean If the population standard deviation is known to be 10 and a sample of size 42 has a mean of 38.4 Using StatCrunch Select ‘Confidence Interval’ Copyright © 2010, 2007, 2004 Pearson Education, Inc. All Rights Reserved. 51 Example Find the 90% confidence interval for the population mean If the population standard deviation is known to be 10 and a sample of size 42 has a mean of 38.4 Using StatCrunch Enter Confidence Level, then click ‘Calculate’ Copyright © 2010, 2007, 2004 Pearson Education, Inc. All Rights Reserved. 52 Example Find the 90% confidence interval for the population mean If the population standard deviation is known to be 10 and a sample of size 42 has a mean of 38.4 Using StatCrunch Standard Error Lower Limit Upper Limit From the output, we find the Confidence interval is CI = (35.862, 40.938) Copyright © 2010, 2007, 2004 Pearson Education, Inc. All Rights Reserved. 53 Sample Size for Estimating a Population Mean = population mean σ = population standard deviation x = sample mean E = desired margin of error zα/2 = z score separating an area of a/2 in the right tail of the standard normal distribution n= (za/2) Copyright © 2010, 2007, 2004 Pearson Education, Inc. All Rights Reserved. 2 E 54 Round-Off Rule for Determining Sample Size If the computed sample size n is not a whole number, round the value of n up to the next larger whole number. Examples: n = 310.67 n = 295.23 n = 113.01 round up to 311 round up to 296 round up to 114 Copyright © 2010, 2007, 2004 Pearson Education, Inc. All Rights Reserved. 55 Example We want to estimate the mean IQ score for the population of statistics students. How many statistics students must be randomly selected for IQ tests if we want 95% confidence that the sample mean is within 3 IQ points of the population mean? What we know: a /2 = 0.025 a = 0.05 n = 1.96 • 15 = 15 2 = 96.04 = 97 3 z a/ 2 = 1.96 (using StatCrunch) E=3 With a simple random sample of only 97 statistics students, we will be 95% confident that the sample mean is within 3 IQ points of the true population mean . Copyright © 2010, 2007, 2004 Pearson Education, Inc. All Rights Reserved. 56 Summary Confidence Interval of a Mean µ (σ known) σ = population standard deviation x = sample mean n = number sample values 1 – α = Confidence Level ( x – E, x + E ) Copyright © 2010, 2007, 2004 Pearson Education, Inc. All Rights Reserved. 57 Summary Sample Size for Estimating a Mean µ (σ known) E = desired margin of error σ = population standard deviation x = sample mean 1 – α = Confidence Level n= (za/2) Copyright © 2010, 2007, 2004 Pearson Education, Inc. All Rights Reserved. 2 E 58