Estimation of Parameter 1 (Confidence

interval when population is known)

Estimation :
– Kind of i

– Inference where we estimate the value of a population based on

the information obtained by the sample

Point estimate
– Single number that gives an estimate of a population parameter

Confidence Interval / Interval Estimate

– Uses interval estimate to define a range of values that includes

the parameter being estimated with a specified level of
significance

E - Margin of error

Margin of error
– Magnitude of the difference between the sample point estimate
and the true population parameter level

Confidence
– Reliability of an estimate is measured by confidence level

Estimation of Paramter
– Confidence Intervals for the mean and sample size when sample
known
alpha = level of significance
a = level of significance
a/2 = Area of each curve at the normal curve
Za/c = Zc (Confidence Level)
E = Fomula : E=zc(∂/√n)
-
x = 4 , ∂ = 0.75 n=30

For the 99% confidence interval, use z = 2.575

– -
x - za/2 (∂ / √n) < µ < x + za/2 (∂ / √n)

4-2.575(0.75/√30) < µ < 4+3.575(0.75/√30)

4-0.353 < µ < 4+0.353

3.647 < µ < 4.353

Answer: The best point estimate of the population mean is 4 years.

Thus, one can be 99% confident that the mean age of a flat TV is
between 3.647 and 4.353 years based on a sample of 30
household
-
x = 500 ∂ = 80 n= 40
Best point estimate = 500

Margin of error = E = zc(∂/√n)

95% confidence interval = 1.960

E = 1.960(80/√40)
= 24.792

500 - 24.792 = 475.208

500+24.792 = 524.792

Answer : The best point estimate of the population mean is 4 years.

Thus, one can say with 95% confidence interval that the true mean
of population is between 475.21 and 524.79 based on a sample of
40 young professionals

Sample size determination

E = Zc ∂/√n
E = Zc ∂/√n
E √n = Zc∂
√n = Zc ∂/E

Formula n = (Zc∂/E)^2
note : Round up n to the next whole 18.34 is still rounded up to 19
∂ = 4.5
Zc = 1.960
E = 2.1

n = (1.960x4.5/2.1)^2
= 17.64
  ≈ 18

Question 1.
σ = 12
n = 300
-
x = 75
z = 2.575
E = 2.575(12/√300)
= 1.784
Lower limit : 75 - 1.784 = 73.216
Upper limit : 75 + 1.784 = 76.784
(73.217,76.784) = (73,77)

Question 2
σ = 25
n = 120
-
x = 150
Zc = 1.960
E = Zcσ/√n
= 1.960(25/√120)
= 4.473

Lower Limit : 150 - 4.473 = 145.527

Upper Limit; 150 + 4.473 = 154.473