UNDERSTANDING CONFIDENCE INTERVAL ESTIMATES FOR THE SAMPLE MEAN Lesson Objectives At the end of this lesson, you are expected to: • define confidence level; • define confidence interval; • apply the normal curve concepts in computing the interval estimate; and • compute confidence interval estimates. Pre-Assessment Pre-Assessment Lesson Introduction Suppose we want to know the “true” average weight of all the students in the population where the students in this class belong. We can increase the precision of our guess by getting as many random samples as we can from the population where the students purportedly come from. Form five groups and name each Group A, Group B, Group C, Group D, and Group E. Assume that these groups are random samples. Lesson Introduction Group Tasks • Using a weighing scale, find the weight of each group member carefully. • Compute the mean weight and the standard deviation of each group. • Compute the mean of the group means. • How would you describe your group based on the result of the computation? • What is your estimate of the mean of the population where your group seems to belong? • Reflect on your estimation. Are you confident about it? To what extent are you confident? Express your confidence as a percentage. Discussion Points • An interval estimate, called a confidence interval, is a range of values that is used to estimate a parameter. This estimate may or may not contain the true parameter value. • The confidence level of an interval estimate of a parameter is the probability that the interval estimate contains the parameter. It describes what percentage of intervals from many different samples contain the unknown population parameter Discussion Points Formula for Confidence Interval E z /2 n However, when σ is not known (as is often the case), the sample standard deviation s is used to approximate σ. So, the formula for E is modified. s E z /2 n Discussion Points • In computing a confidence interval for a population mean by using raw data, round off to one more decimal place than the number of decimal places in the original data. • In computing a confidence interval for a population mean by using a sample mean and a standard deviation, round off to the same number of decimal places as given for the mean. Discussion Points Example 1 Find the estimate of the population mean μ using the 95% confidence level. Solution Point Estimate Solution 95% Confidence Interval Example 2 A researcher wants to estimate the number of hours that 5year old children spend watching television. A sample of 50 five-year old children was observed to have a mean viewing time of 3 hours. The population is normally distributed with a population standard deviation α = 0.5 hours, find: • • the best point estimate of the population mean the 95% confidence interval of the population mean Solution Point Estimate Solution 95% Confidence Interval Exercises 1. 2. 3. 4. What measure of central value best estimates the population mean? Why is the interval estimate a preferred value for the population parameter? Given the information: the sampled population is normally distributed, X– = 36.5, σ = 3, and n = 20. a. What is the 95% confidence interval estimate for μ? b. Are the assumptions satisfied? Explain why. A sample of 60 Grade 9 students’ ages was obtained to estimate the mean age of all Grade 9 students. X– = 15.3 years and the population variance is 16. • What is the point estimate for μ? • Find the 95% confidence interval for μ. • Find the 99% confidence interval for μ. • d. What conclusions can you make based on each estimate? Summary • An interval estimate, called a confidence interval, is a range of values that is used to estimate a parameter. This estimate may or may not contain the true parameter value. • The confidence level of an interval estimate of a parameter is the probability that the interval estimate contains the parameter. It describes what percentage of intervals from many different samples contain the unknown population parameter