More Examples of Z distribution

CI =
CI =

© 2011 Pearson Education, Inc

© 2011 Pearson Education, Inc
© 2011 Pearson Education, Inc
 Example

Ten independent readings of the voltage of a cell were taken and the results were
As follows:
1.15, 1.12, 1.11, 1.14, 1.10, 1.05, 1.08, 1.12, 1.09, 1.04
Calculate 95% confidence interval for the voltage of the cell.

A plant is in control when the average quantity of instant coffee that is packed in a
jar is 8 ounce. The standard deviation of quantity is 0.3 ounces. A sample of 100 jars
is selected at random and the average is found to be 7.9 ounces. Find a 98%
confidence interval for the average quantity of coffee.
 One sample T Test

USE T Distribution
Example 2

If Cl= 90% then fnn T value by (α/2) for two tailen. test α/2 = (1 –
CL)/2 = (1 – 0.90)/2 = 0.1 /2 = 0.05
 How to find Critical Value = “T” from T Table when
If Cl= 90% then fnn T value by (α/2) for two tailen test α/2 = (1 –
CL)/2 = (1 – 0.90)/2 = 0.1 /2 = 0.05
OR by α for single tailen test α = (1 – CL) = (1 – 0.90) = 0.1
How to find Critical Value = “T” from T Table when CL = 99%
for single tailen test α = (1 – CL) = (1 – 0.99) = 0.01
© 2011 Pearson Education, Inc
 The confidence interval for the Difference in Means (DM)

The confidence interval for the difference in means provides an estimate of the
absolute difference in means of the outcome variable of interest between the
comparison groups. It is often of interest to make a judgment as to whether there is a
statistically meaningful difference between comparison groups.
Confidence Interval for the Difference Between Means
1.A confidence interval (C.I.) for a difference between means is a range of values that is
likely to contain the true difference between two population means with a certain level of
confidence. ...
2.Confidence interval = (x1–x2) +/- t*√((sp2/n1) + (sp2/n2))
3.Confidence interval = (x1–x2) +/- z*√((σp2/n1) + (σp2/n2))
The confidence interval for the Difference in Means (DM)
 Confidence Interval of Difference of Means

Introduction
This procedure calculates the sample size necessary to achieve a specified distance
from the difference in sample means to the confidence limit(s) at a stated confidence
level for a confidence interval about the difference in means when the underlying data
distribution is normal.
Caution: This procedure assumes that the standard deviations of the future samples will
be the same as the standard deviations that are specified.
If the standard deviation to be used in the procedure is estimated from a previous
sample or represents the population standard deviation, the Confidence Intervals for the
Difference between Two Means with Tolerance Probability procedure should be
considered.
That procedure controls the probability that the distance from the difference in means to
the confidence limits will be less than or equal to the value specified. Technical Details
There are two formulas for calculating a confidence interval for the difference between
two population means.
The different formulas are based on whether the standard deviations are assumed to be
equal or unequal. For each of the cases below, let the means of the two populations be
represented by µ1 and µ2 , and let the standard deviations of the two populations be
represented as σ1 and σ 2 .
 Confidence Interval of Difference of Means
Dependant Samples
Dependent Samples
This type of confidence interval for the difference of population means is for
dependent sample means.

Meaning, the difference between means is due to different conditions of the

population and not due to the experimental units in the study. This is called
a matched pair interval.

The great thing about a paired sample is that it becomes a one-sample

confidence interval.
This procedure assumes that the standard deviations of the future samples
will be the same as the standard deviations that are specified.

First, we find the difference between the two samples. In other words, we
subtracting the “before” and “after” values to find the “difference.”

Next, we calculate the sample mean and sample standard deviation using
the values from the difference column.
 Confidence Interval of Difference of Population Means

How to construct a confidence interval to estimate the difference in population means

using two samples and test statistics!
1. Independent samples where the population standard deviations are known.
2. Independent samples where the population standard deviations are unknown.
3. Dependent (matched pair) samples.

1. Population standard deviation is known, which is highly unlikely.

In that case, we will use a z-test and follow the following formula for constructing a
confidence interval for the difference of means.

2. Population standard deviation is Unknown for two independent random samples and
the sample size is sufficiently large, then we will have to use a t-test, which involves a
t-distribution with degrees of freedom, as well as the possibility of pooled variances.
Confidence Interval of Difference of Means
Example 1
 Confidence Interval of a Difference of Mean

Confidence interval: an interval of plausible values for the parameter being

estimated, where degree of plausibility specifided by a “confidence level
 Confidence Interval of Difference of Means

Case 1 – Standard Deviations Assumed Equal When σ1 = σ 2 = σ are unknown,

the appropriate two-sided confidence interval for µ1 - µ2 is

Upper and lower one-sided confidence intervals can b obtained by replacing α/2 with α.
The required sample size for a given precision, D, can be found by solving the following
equation iteratively

This equation can be used to solve for D or n1 or n2 based on the values of the
remaining parameters.
 Confidence Interval of Difference of Means

Case 2 – Standard Deviations Assumed Unequal When σ1 ≠ σ2 unknown, the

appropriate two-sided confidence interval for µ1 – µ2 is

In this case t is an approximate t and the method is known as the Welch-Satterthwaite

method. Upper and lower one-sided confidence intervals can be obtained by replacing
α/2 with α. The required sample size for a given precision, D, can be found by solving
the following equation iteratively

This equation can be used to solve for D or n1 or n2 based on the values of the
remaining parameters
Example 2
 

Q1. For the data given below, fnd a 95% confdence interval.
= 180, = 150
= $ 221.25 = $ 206.38
= $ 89.48 = $ 69.88.
Sol :
 Example 3
Q. Two processes are being considered by a
manufacturer who has been able to obtain the
following fgures relating to production per
hour. Process A produced 110.2 units per
hour as the average from the sample of ten
hourly run. The standard deviation was four.
Process B had 15 hourly runs and gave an
average of 105.4 units per hour, with a
standard deviation of three. Find the 95%
confdence interval for the data.
Sol : Calculated

1.906 - 7.694
Assignment
1.A sample of 90 people were selected from a large population. If the average
amount spent per week on lottery tickets was found to be $5.60 and the
standard deviation was $2.90. Calculate the 95% confidence interval for the
mean of the population.
-----------------------------------------
2.Two processes are being considered by a manufacturer who has been able
to obtain the following figures relating to production per hour. Process A
produced 110.2 units per hour as the average from the sample of ten hourly
run. The standard deviation was four. Process B had 15 hourly runs and gave
an average of 105.4 units per hour, with a standard deviation of three. Find
the 95% confidence interval for the data.
-------------------------------------------
-------------------------------------------
3.A production manager claims that an average of 50 boxes per hour are filled with
finished goods at a final stage of production line. A random sample of 48 different
workers, at different times, working at the end of identical production lines shows an
average number of boxes filled as 47.5 with a standard deviation of 0.7 boxes. Does
this evidence support the assertion
by the production
manager at the 5% level of significance ?
----------------------------------------------------------
4.A manufacturer of batteries has assumed that the average expected life is 299
hours. As a result of recent changes to the filling of the batteries, the manufacturer
now wishes to test if the average life has increased. A sample
of 200 batteries was taken at random from the production line and tested.
Their average life was found to be 300 hours with a standard deviation
of eight hours. You have been asked to carry out the appropriate hypothesis
test at the 5% significance level.
------------------------------------------------------
5.A lorry manufacturer claims that the average annual maintenance cost for
its vehicles is $500. The maintenance department of one of their customers
believes it to be higher, and to test the suggestions randomly selects a sample
of six lorries from their large fleet. From this sample, the mean annual main-tenance
cost was found to be $555, with a standard deviation of $75.Use an appropriate
hypothesis test , at the 5% level, to find the manufacturer claim
is valid.
----------------------------------------
6.A company has two factories, one in the UK and one in the Germany. There is a view
that the German factory is more efficient than the British one, and to test this, a random
sample is selected from each of the factories. The British sample consists of 20 workers
who takes an average of 25 minutes to complete a standard task. Their standard
deviation is five minutes. The German sample has ten workers who take an average of
20 minutes to complete the same task, and the sample has a standard deviation of four
minutes. Use an appropriate hypothesis test, at the one percent level of significance to
find if the German workers are more efficient.
-----------------------------------------
7.Four techniques, A, B, C, and D are currently used by business units to forecast
demand for their product or service. To find out whether one technique is
Preferred to any other, a random sample of 200 business units were asked
Which technique they preferred. Their responses are shown below.

A B C D
40 70 50 40

Is their sufficient evidence to indicate that there are differences in the proportions of
business units preferring each technique ? α=0.05
 Q1 . Assuming that the lengths of life of electric bulbs produced by a firm follow a
normal distribution having an average length of life 700 hours with a variance of 900
hours. Find the probability that bulb selected at random will last for less than 800
hours
Q2. Suppose that the time you spend waiting for Chingchi is approximately normally
distributed with mean 10 minutes and standard deviation 2 minutes. If you want to
catch a Chingchi today, what is the probability that you will have to wait for more than
15 minutes.
Q 3. A random sample of 6 markets of Karachi is selected and the price in rupees per
kg of apples is noted as follows.
124, 120, 127, 126, 130, and 128
Construct a 95% confidence interval for the average price of apples in all the
markets of Karachi?
Q 4. Two random samples are drawn independently from two normal populations.
Find 95% confidence interval for μ_1-μ_2 for the following values.
= 100, = 100, = 345, = 340 = 196, = 204
 Confidence Interval of a Mean of Differences
(Paired Observation)

Example 1
 Confidence Interval of a Mean of Differences
(Paired Observation)
Example 2
Confidence Interval of a Mean of Differences
(Paired Observation)
Example
Assignment