Lesson 2

Computing Interval Estimates for

the Population Mean
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 Learning Outcomes
At the end of the lesson, the learner should be able to:
1. Enhance understanding of the concept of estimation
2. Compute the interval estimate of a population mean
3. Apply the concept of estimation in problem solving
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 Encircle the letter of the best answer
1. A point estimate of a population value consists of __ numbers.
a. 1 b. 2 c. 10 d. Infinite
2. Which of these shapes is the symmetrical and bell-shaped
distribution of a random variable?
a. Graph b. Pie chart c. Normal curve d. Line graph
3. In a standard normal curve, the standard scores are also called __
a. z b. t c. f d. S
4. The area under the curve is __
a. 1 b. 0.99 c. 0.95 d. 0.5
In a standard normal distribution, the mean is __
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5.
a. 0 b. 1 c. 2 d. 3
 𝜎
6. The value 𝑧𝛼 ∙ is called __
2 𝑛
a. Mean of the sampling distribution
b. Standard deviation of the raw score distribution
c. Mean of the sampling distribution of proportions
d. Standard error of the sampling distribution of means
7. In a standard normal curve, what is the z value that corresponds to the
proportion of 0.3413?
a. 1 b. 1.6 c. 2 d. 3
8. About what percent of the area under the normal curve lies within 1
standard deviation below the mean and 1 standard deviation above the
mean?
a. 68% b. 90% c. 95% d. 99%
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 9. Under the standard normal distribution, what is the z value that corresponds to
an area of 0.4750?
a. ±2.58 b. ±2.33 c. ±1.96 d. None of these
10. The ___ states, “As the sample size n increases, the shape of the distribution of
the sample means taken with replacement from a population with mean 𝜇 and
standard deviation 𝜎 will approach a normal distribution.”
a. The Pascal’s triangle
b. The Central Limit Theorem
c. The z-distribution
d. The t-distribution
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 Remember!!!
1. Importance of point estimation of population. Point estimators are used
to find an approximate value of a population parameter from random
samples of the population. The sample data of a population is used to
calculate a point estimate or a statistic that serves as the best estimate of
an unknown parameter.
2. Concept of random samples and importance in estimation. Random
sampling ensures that results obtained from the sample should
approximate what would have been obtained if the entire population had
been measured.
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 Remember!!!
3. Interval estimate with example. An interval is a range of values for a
statistic. Example, the mean of a data set falls somewhere between 10
and 100 10 < 𝜇 < 100 . A point estimate is an single and exact value,
𝜇 = 55.
4. Confidence interval in statistics (interval estimate). The probability that a
population parameter will fall between a set of value for a certain
proportion of time.
5. Confidence interval of 95%. Range of values that can be 95% confident
contains the true mean of the population.
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 95% Confidence Interval
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 Remember!!!
6. Confidence level. Indicates the probability, with which the estimation of
the location of a statistical parameter (arithmetic mean) in a sample
survey is also true for the population. The three commonly used
confidence levels are 90%, 95%, and 99%.
7. Good confidence level. A smaller sample size or a higher variability will
result in a wider confidence interval with a larger margin of error. The
level of confidence also affects the interval width. To have a higher level
of confidence, the interval will be as tight. A tight inter at 95% or higher,
confidence is ideal.
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 Remember!!!
8. Alpha 𝜶 level. Refers to the likelihood that the true population
parameter lies outside the confidence level. Alpha is usually expressed as
a proportion. If the confidence level is 95%, then 𝛼 = 1 − 0.95 𝑜𝑟 0.05,
when 𝛼 = 0.01 then confidence level will be 99%.
9. Confidence coefficients (z-values). The proportion of samples of a given
size that may be expected to contain the true mean. (critical values)
10. 95% confidence coefficient. The z value for 95% confidence is 𝑧 = 1.96
11. Central limit theorem. The distribution of sample means approximates a
normal distribution as the sample size gets larger, regardless of the
population distribution. Sample sizes equal to or greater than 30 are
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sufficient for the CLT to hold.

 Finding Interval Estimate given 95% confidence
▪ When 95% confidence is adopted, the interval estimate :
𝜎 𝜎
𝜇 − 1.96 to μ + 1.96
𝑛 𝑛
▪ When a sample mean 𝑋ത is specified, there is a 95% probability that the interval:
𝜎 𝜎
𝜇 − 1.96 to μ + 1.96 contains 𝑋ത
𝑛 𝑛
▪ In like manner, there is a 95% probability that the interval specified as:
𝜎 𝜎
𝑋ത − 1.96 𝑛
to 𝑋ത + 1.96 𝑛
will contain 𝜇
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 Determining the interval estimate for the parameter 𝜇
𝜎
𝑋ത − 𝑧𝛼 lower confidence boundary value
2 𝑛
𝜎
𝑋ത + 𝑧𝛼 upper confidence value
2 𝑛

Interval estimate boundaries for 90% confidence: 𝑧𝛼 ± 1.65

2

Interval estimate boundaries for 95% confidence: 𝑧𝛼 ± 1.96

2

Interval estimate boundaries for 99% confidence: 𝑧𝛼 ± 2.58

2
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 Remember!!!
12. Margin of error. The degree of error in results received from random
sampling surveys. Higher margin of error in statistics indicate less
likelihood of relying on the results of a survey or poll, the confidence on
the results will be lower to represent a population. Maximum difference
between the observed sample mean and the true value of the population.
𝜎
E = 𝑧𝛼
2 𝑛
𝜎
𝑋ത ± 𝑧𝛼 = 𝑋ത ± 𝐸
2 𝑛
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 Steps in determining interval estimation
3. Select the level of confidence and
corresponding coefficients or
critical values.
4. Collect sample data and find the
point estimate.
5. Find E and compute the interval
estimates.
1. Describe the population parameter
6. Describe the results.
of interest (population mean 𝜇)
2. Specify the confidence criteria
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(assumption of normality and test

statistic using 𝜎)

Example 1.
A random sample of 100
students are asked how much
they spend for a meal during
weekdays. The average
expenses is found to be ₱75.
Past experience has
revealed that the population
standard deviation is ₱5.
Find the point estimate and
the interval estimate of the
population mean 𝜇, using
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the 95% confidence level.
4. Collect sample data and find the point
1. Describe the population of estimate.
interest. The point estimate of the population
The parameter of interest is the mean 𝜇 = 75
mean 𝜇 of the population where the 5. Find E and compute the interval
sample comes from. estimate.
2. Specify the confidence criteria. 𝜎
𝐸 = ±𝑧𝛼
The sample consist of 𝑛 = 100 2 𝑛
and 𝜎 = 5 5
𝐸 = ±1.96 100
= ±0.98
By CLT, the sample is normally
Interval estimates:
distributed; z test is applicable.
3. Select the level of confidence and
𝜎 𝜎
𝑋ത − 𝑧𝛼 < 𝜇 < 𝑋ത + 𝑧𝛼
the corresponding coefficients (critical 2 𝑛 2 𝑛
z value) 75 − 0.98 < 𝜇 < 75 + 0.98
𝟕𝟒. 𝟎𝟐 𝒕𝒐 𝟕𝟓. 𝟗𝟖
95% confidence, 𝛼 = 0.05
Critical z value: ±1.96 6. Describe the result
At 95% confidence, the interval
between 74.02 and 75.98 contains the
population mean 𝝁 based on a sample size
of 100. Expenses on meals range from
approximately ₱74 to ₱76.
 1. The parameter of interest 4. The point estimate of the
is the mean 𝜇 of the population mean 𝜇 = 18
population where the 𝜎
Example 2. sample comes from.
5. 𝐸 = ±𝑧𝛼
2 𝑛
0.5
𝐸 = ±1.96 = ±0.14
Given the information: 2. The sample information 50
Interval estimates:
𝑛 = 50; 𝜎 = 0.5 𝑎𝑛𝑑 consists of 𝑛 = 50 and
𝜎 𝜎
𝑋ത = 18 𝜎 = 0.5. By CLT, the 𝑋ത − 𝑧𝛼 ത
< 𝜇 < 𝑋 + 𝑧𝛼
2 𝑛 2 𝑛
Find (a) the best point sample is normally 18 − 0.14 < 𝜇 < 18 + 0.14
estimate of the distributed; z test is 𝟏𝟕. 𝟖𝟔 𝒕𝒐 𝟏𝟖. 𝟏𝟒
population mean, and applicable. 6. The point estimate of the
The confidence interval is population mean mean 𝜇 = 18
(b) the 95% confidence 3.
With 95% confidence, the interval
interval of the 95% 𝛼 = 0.05; Critical z
between 17.86 and 18.14 contains
population mean. value: ±1.96 the population mean 𝜇 based on
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the sample size of 50

 1. The parameter of interest 92+87+89+90+⋯+90
Example 3. is the mean 𝜇 of the
4. 𝑋ത =
𝜎
40
= 87.65

population where the 5. 𝐸 = ±𝑧𝛼

Forty graduating students 2 𝑛
6
have been given the sample comes from. 𝐸 = ±2.58 = ±2.45
40
following grades in a Field 2. The sample information Interval estimates:
Study. Assume that they
consists of 𝑛 = 40 and 𝜎 𝜎
come from a population that 𝑋ത − 𝑧𝛼 ത
< 𝜇 < 𝑋 + 𝑧𝛼
has the shape of a normal 𝜎 = 6. By CLT, the 2 𝑛 2 𝑛
sample is normally 87.65 − 2.45 < 𝜇 < 87.65 + 2.45
distribution and 𝜎 = 6.
𝟖𝟓. 𝟐𝟎 𝒕𝒐 𝟗𝟎. 𝟏𝟎
Estimate their true grades distributed; z test is
6. The point estimate of the
using 99% confidence applicable. population mean mean 𝜇 = 87.65
92 84 93 90 92 93 94 90 90 94
3. The confidence interval is With 99% confidence, the interval
87 83 95 85 87 85 95 84 89 91
99% 𝛼 = 0.01; Critical z between 85.20 and 90.10 contains
89 93 87 83 87 80 90 84 83 82
value: ±2.58 the population mean 𝜇 based on
80 90 83 80 89 88 81 81 93 90
the sample size of 40 grades
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 Example 4. 1. The parameter of 4. 𝑋ത =
100+90+88+⋯+100
= 97.5 ≈
50
Mang Pedro uses the kaing to assess interest is the mean 𝜇 of 98 𝑚𝑎𝑛𝑔𝑜𝑒𝑠
his harvest of mangoes. After he has the population where 𝜎
5. 𝐸 = ±𝑧𝛼
the sample comes from. 𝑛
used a certain kind of fertilizer, the 2
8
mangoes yield the following per kaing. 2. The sample information 𝐸 = ±1.96 = ±2.21
50
100 92 110 112 90 98 97 106 100 100 consists of 𝑛 = 50 and Interval estimates:
90 98 120 108 96 92 95 98 92 102
𝜎 = 8. By CLT, the 𝜎 𝜎
88 102 98 88 89 90 102 100 100 97 𝑋ത − 𝑧𝛼 ത
< 𝜇 < 𝑋 + 𝑧𝛼
sample is normally 2 𝑛 2 𝑛
102 100 100 86 87 100 105 97 93 96
distributed; z test is 97.5 − 2.21 < 𝜇 < 97.5 + 2.21
89 98 96 96 92 100 98 98 92 100
applicable. 𝟗𝟓. 𝟐𝟗 𝒕𝒐 𝟗𝟗. 𝟕𝟏 ≈ 𝟗𝟓 𝒕𝒐 𝟏𝟎𝟎
Consider each kaing (a group) a
3. The confidence interval is 6. With 95% confidence, the interval
random sampling. From the past
between 95 and 100 contains
harvest, the population standard 95% , 𝛼 = 0.05; Critical z
the population mean 𝜇 based on
deviation was observed to be 8 value: ±1.96
the sample size of 50 kaing
mangoes. Find the point and interval
estimates of the population mean
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𝜇 per kaing using 95% confidence

 Summary
1. When n is large, the CLT is applicable, and z test is also applicable.
2. An interval estimate, called the 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.
3. The confidence level of an interval estimate of a parameter is the probability that
the interval estimate contains the parameter. It describes what percentages of
intervals from many different samples the unknown population parameter.
4. The general computing formula for interval estimates
𝜎 𝜎
𝑋ത − 𝑧𝛼 < 𝜇 < 𝑋ത + 𝑧𝛼
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2 𝑛 2 𝑛
𝜎
where the term is called error E.
𝑛
 Answer the questions briefly
1. What is an interval estimate?
2. How does an interval estimate differ from a point estimate?
3. What is the advantage of the interval estimate over the point
estimate?
4. Which of the following illustrate a confidence level?
a. 95% b. 12.5 c. 50.0 d. 90-95
5. Which of the following indicates a confidence interval?
a. 0.95 b. 99% c. 100 d. 54-59
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 Deepen Your Understanding
1. What is the margin of error E?
2. Given information: the sample population is normally distributed, 𝑋ത = 42.5,
σ = 3, and 𝑛 = 30.
(a) what is the 95% confidence interval estimate for 𝜇?
(b) Are the assumptions satisfied? Explain why.
3. Given: 𝑛 = 68, 𝑋ത = 75, and 𝜎 = 8. The sample population is normally
distributed.
(a) Find the 99% confidence interval for 𝜇.
(b) Are the assumptions satisfied? Explain why.
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 Deepen Your Understanding
4. A sample of 100 Grade 9 students’ ages have been obtained to estimate the mean age of all
grade 9 students. 𝑋ത = 16 years and the population variance is 16.
(a) what is the point estimate for 𝜇?
(b) find the 95% confidence interval for 𝜇.
(c) find the 99% confidence interval for 𝜇.
(d) what conclusion can you make, based on each estimate?
5. Find the point and interval estimates of the population mean 𝜇 of the following problem.
For a 100-m butterfly style swimming event, 40 random sample times have been noted among
athletes. The population standard deviation is 10 minutes. Find the point and interval
estimates for the population mean 𝜇, using 𝛼 = 0.05
12 13 16 16 12 18 14 20
10 14 12 14 14 23 20 16
9 18 9 16 16 15 18 20
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9.5 26 10 15 17 17 16 18
10.2 20 13 15 12 10 18 18