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A confidence interval for a population mean with a known standard deviation is based on the fact that the sample means follow an approximately normal distribution. Suppose that our sample has a mean of x ¯  = 10 and we have constructed the 90% confidence interval (5, 15) where EBM = 5.

Calculating the confidence interval

To construct a confidence interval for a single unknown population mean μ , where the population standard deviation is known , we need x ¯ as an estimate for μ and we need the margin of error. Here, the margin of error ( EBM ) is called the error bound for a population mean (abbreviated EBM ). The sample mean x ¯ is the point estimate of the unknown population mean μ .

The confidence interval estimate will have the form:

(point estimate - error bound, point estimate + error bound) or, in symbols,( x ¯ E B M , x ¯ + E B M )

The margin of error ( EBM ) depends on the confidence level (abbreviated CL ). The confidence level is often considered the probability that the calculated confidence interval estimate will contain the true population parameter. However, it is more accurate to state that the confidence level is the percent of confidence intervals that contain the true population parameter when repeated samples are taken. Most often, it is the choice of the person constructing the confidence interval to choose a confidence level of 90% or higher because that person wants to be reasonably certain of his or her conclusions.

There is another probability called alpha ( α ). α is related to the confidence level, CL . α is the probability that the interval does not contain the unknown population parameter.
Mathematically, α + CL = 1.

  • Suppose we have collected data from a sample. We know the sample mean but we do not know the mean for the entire population.
  • The sample mean is seven, and the error bound for the mean is 2.5.

x ¯ = 7 and EBM = 2.5

The confidence interval is (7 – 2.5, 7 + 2.5), and calculating the values gives (4.5, 9.5).

If the confidence level ( CL ) is 95%, then we say that, "We estimate with 95% confidence that the true value of the population mean is between 4.5 and 9.5."

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Suppose we have data from a sample. The sample mean is 15, and the error bound for the mean is 3.2.

What is the confidence interval estimate for the population mean?

(11.8, 18.2)

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A confidence interval for a population mean with a known standard deviation is based on the fact that the sample means follow an approximately normal distribution. Suppose that our sample has a mean of x ¯ = 10, and we have constructed the 90% confidence interval (5, 15) where EBM = 5.

To get a 90% confidence interval, we must include the central 90% of the probability of the normal distribution. If we include the central 90%, we leave out a total of α = 10% in both tails, or 5% in each tail, of the normal distribution.

This is a normal distribution curve. The peak of the curve coincides with the point 10 on the horizontal axis. The points 5 and 15 are labeled on the axis. Vertical lines are drawn from these points to the curve, and the region between the lines is shaded. The shaded region has area equal to 0.90.

To capture the central 90%, we must go out 1.645 "standard deviations" on either side of the calculated sample mean. The value 1.645 is the z -score from a standard normal probability distribution that puts an area of 0.90 in the center, an area of 0.05 in the far left tail, and an area of 0.05 in the far right tail.

Questions & Answers

Write a short note on skewness
Saran Reply
and on kurtosis too
Hiren
What is events
Manish Reply
who is a strong man?
Desmond Reply
Can you sir plz provide all the multiple choice questions related to Index numbers.?
Hiren Reply
about probabilty i have some questions and i want the solution
asad Reply
What is hypothesis?
Rosendo Reply
its a scientific guess
ted
A hypothesis in a scientific context, is a testable statement about the relationship between two or more variables or a proposed explanation for some observed phenomenon. In a scientific experiment or study, the hypothesis is a brief summation of the researcher's prediction of the study's findings.
Hamzah
Which may be supported or not by the outcome. Hypothesis testing is the core of the scientific method.
Hamzah
statistics means interpretation analysis and representation of numerical data
Ramzan
To check the statment or assumption about population parameter is xalled hypothesis
Ali
hypothesis is simply an assumption
Patrick
what is the d.f we know that how to find but basically my question is what is the d.f? any concept please
asad Reply
Degrees of freedom aren’t easy to explain. They come up in many different contexts in statistics—some advanced and complicated. In mathematics, they're technically defined as the dimension of the domain of a random vector.
Hamzah
d.f >> Degrees of freedom aren’t easy to explain. They come up in many different contexts in statistics—some advanced and complicated. In mathematics, they're technically defined as the dimension of the domain of a random vector.
Hamzah
But we won't get into that. Because degrees of freedom are generally not something you needto understand to perform a statistical analysis—unless you’re a research statistician, or someone studying statistical theory.
Hamzah
And yet, enquiring minds want to know. So for the adventurous and the curious, here are some examples that provide a basic gist of their meaning in statistics.
Hamzah
The Freedom to Vary First, forget about statistics. Imagine you’re a fun-loving person who loves to wear hats. You couldn't care less what a degree of freedom is. You believe that variety is the spice of life Unfortunately, you have constraints. You have only 7 hats. Yet you want to wear a different
Hamzah
hat every day of the week. On the first day, you can wear any of the 7 hats. On the second day, you can choose from the 6 remaining hats, on day 3 you can choose from 5 hats, and so on.
Hamzah
When day 6 rolls around, you still have a choice between 2 hats that you haven’t worn yet that week. But after you choose your hat for day 6, you have no choice for the hat that you wear on Day 7. You must wear the one remaining hat. You had 7-1 = 6 days of “hat” freedom—in which the hat you wore
Hamzah
That’s kind of the idea behind degrees of freedom in statistics. Degrees of freedom are often broadly defined as the number of "observations" (pieces of information) in the data that are free to vary when estimating statistical parameters.
Hamzah
please help me understand binomial distribution
Nnenna Reply
binomial distribution and poisson both are used to estimate the number of successes probable against the. probable failures. the difference is only that BINOMIAL dist. is for discrete data while POISSON is used for continuous data.
Salman
What do you need to understand?
Angela
The binomial distribution is frequently used to model the number of successes in a sample of size n drawn with replacement from a population of size N. If the sampling is carried out without replacement, the draws are not independent and so the resulting distribution is a hypergeometric distribution
Hamzah
poisson distribution is also for discrete data set. The difference is when the probability of occurring an event is very little and the sample size is extra large then we use poisson distribution.
Neil
Neil yes you got it and very interested answer you gave
jamilu
How to know if the statement is 1 tail or 2 tail?
Coleen Reply
1 tail if greater than pr less than.2 tail if not equal.
Jojo
in such a case there is no sufficient information provided to develop an alternative hypothesis and we can decide between only two states i.e either the statement is EQUAL TO or NOT EQUAL TO under given conditions
Salman
for 1tail there must be certain criteria like the greater than or less than or some probability value that must be achieved to accept or reject the original hypothesis.
Salman
for example if we have null hypothesis Ho:u=25 Ha:u#25(not equal to 25) it would be two tail if we say Ho:u=25 Ha:u>or Ha:u<25 it would be consider as one tail I hope you will be understand #Coleen
Shabir
yes its true. now you have another problem. so share.
ibrar
what is z score
Esperanza Reply
How to find z score through calculator
Esperanza
Different data sets will have different means and standard deviations, so values from one set cannot always be compared directly with those from another. The z-score standardizes normally distributed data sets, allowing for a proper comparison and a consistent definition of percentiles across data s
Hamzah
what are random number
Saif Reply
how to compute the mean with a long method
Fria Reply
there is a shortcut method for calculating mean long methid doesn't make any sense.
Neil
what are probability
Saif
probability mass function
Saif
probability density function
Saif
there are many definitions of probability. which one is, the ratio of favourable outcomes & total outcomes.
suhail
distribution used for modeling/(find probabilities) of discrete r.v. is called p.m.f
suhail
distribution used for modeling/(find probabilities) of continued r.v, called p.d.f
suhail
lets use short method using calculator.... store yo data n smply get your mean
Flavian
if 1 calorie =4.12 kj, what is the total kj value of this dish
Jacqueline Reply
summation of values of x1 x2 x3 ,,,,xn divided by total number n if it is with frequency its like this summation of values of x1f1+x2f2+x3f3+xnfk divided by summation of frequencies like f1+f2+f3+fk
farah Reply
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QuizOver Reply

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Source:  OpenStax, Introductory statistics. OpenStax CNX. May 06, 2016 Download for free at http://legacy.cnx.org/content/col11562/1.18
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