Practical - 7

Construction of confidence interval for large samples

Formulas: Large Samples, (n > 30)

 Confidence interval for single mean (μ)
𝜎 𝜎
(𝑥̅ - 𝑍𝛼/2 𝑛, 𝑥̅ + 𝑍𝛼/2 𝑛 )
√ √

 Confidence interval for difference of mean (𝜇1 − 𝜇2 )

a) If 𝝈𝟏 𝟐 and 𝝈𝟐 𝟐 are known
𝜎 2 𝜎2 2 𝜎 2 𝜎2 2
(|𝑥̅1 − 𝑥̅2 |- 𝑍𝛼/2 √ 𝑛1 + , |𝑥̅1 − 𝑥̅2 | + 𝑍𝛼/2 √ 𝑛1 + )
1 𝑛2 1 𝑛2

b) If 𝝈𝟏 𝟐 and 𝝈𝟐 𝟐 are unknown instead if the sample variance are known then

𝑠 2 𝑠2 2 𝑠 2 𝑠2 2
(|𝑥̅1 − 𝑥̅2 |- 𝑍𝛼/2 √ 𝑛1 + , |𝑥̅1 − 𝑥̅ 2 | + 𝑍𝛼/2 √ 𝑛1 + )
1 𝑛2 1 𝑛2

c) If both samples 𝒏𝟏 and 𝒏𝟐 are drawn from the same population.

1 1 1 1
(|𝑥̅1 − 𝑥̅2 |- 𝑍𝛼/2 𝜎 √𝑛 + 𝑛 , |𝑥̅1 − 𝑥̅2 | + 𝑍𝛼/2 𝜎 √𝑛 + 𝑛 )
1 2 1 2

 Confidence interval for proportion

𝑝𝑞 𝑝𝑞
P = (p - 𝑍𝛼/2 √ 𝑛 , (p + 𝑍𝛼/2 √ 𝑛 )

 Confidence interval for difference of proportion (𝑃1 − 𝑃2 )

𝑝1 𝑞1 𝑝2 𝑞2 𝑝1 𝑞1 𝑝2 𝑞2
(|𝑝1 − 𝑝2 |- 𝑍𝛼/2 √ + , |𝑝1 − 𝑝2 |+ 𝑍𝛼/2 √ + )
𝑛1 𝑛2 𝑛1 𝑛2