Chapter 8 Estimating with Confidence Definitions A point estimator is a statistic that provides an estimate of a population parameter. The value of that statistic from a sample is call a point estimate. Ideally, a point estimate is our “best guess” at the value of an unknown parameter. Example: Tonya wants to estimate what proportion of students are going to attend the prom. She interviews a SRS of 50 of the 750 students at her school and finds that 36 of them are going to the prom. What is the point estimator? Confidence Interval To say that we are 95% confident is shorthand for “95% of all possible samples of a given size from this population will result in an interval that captures the unknown parameter.” Confidence Intervals In general: confidence interval = estimate ± margin of error When calculating: confidence interval = statistic ± (critical value)(std dev of statistic) “We are C% confident that the interval ___ to ___ captures the actual value of the [population parameter in context].” Conditions Conditions for constructing confidence interval: Random Normal Independent – Individual observations are independent. (sample size n should be no more that 10% of the pop) 8.2 Proportions Confidence interval for p: 𝑝 ± 𝑧∗ 𝑝(1−𝑝) 𝑛 Ex: Mrs. Ramsey’s class took a SRS of beads from a container and got 107 red beads and 144 white beads. Calculate and interpret a 90% confidence interval for p. Keep going… So z* for our problem is _____ Confidence interval: Sample Sizes To determine a sample size n that will give you a certain confidence interval, you use: 𝑧∗ 𝑝(1−𝑝) 𝑛 ≤ 𝑀𝐸 Example Determine the sample size needed to estimate p within 0.03 with 95% confidence. Homework Pg. 481 (16, 17, 21-24) Pg. 496 (27-33, 40, 42, 44-47, 49-52)