INTERVAL

ESTIMATION
USING
CONFIDENCE
INTERVALS
VANYAA KANSAL
BMS 2C 18182
 ESTIMATION
  “Using the value of
a statistic derived from
a sample to estimate the
value of a corresponding
population parameter“

 The sample
provides information that
can be projected, through
various formal or informal
processes, to determine a
range most likely to
describe the missing
information.
CONFIDENCE INTERVAL
 A confidence interval (CI) is a type of interval estimate,
computed from the statistics of the observed data, that might
contain the true value of an unknown population parameter.
 Introduced by Jerzy Neyman – 1937

 Factors affecting width:-

1. Sample size
2. Confidence level
3. Variability in the sample
STEP 1: CHOOSE THE
PHENOMENON YOU WISH TO TEST
 Identifying the population
 Identifying the population parameter which needs to be
estimated
STEP 2: CHOOSE THE SAMPLE
FROM THE POPULATION
STEP 3: CALCULATE SAMPLE
STATISTICS

s
n-
1
STEP 4: CHOOSE THE DESIRED
LEVEL OF CONFIDENCE
STEP 5: COMPUTE MARGIN OF
ERROR AND CONFIDENCE
INTERVAL
 Point estimate ± (Reliability coefficient * Standard
error)


CONFIDENCE INTERVAL FOR
POPULATION MEAN : LARGE SAMPLE
1. POPULATION STANDARD
DEVIATION KNOWN
2. POPULATION STANDARD
DEVIATION UNKNOWN
CONFIDENCE INTERVAL FOR
POPULATION MEAN : SMALL SAMPLE
1. POPULATION STANDARD
DEVIATION KNOWN
2. POPULATION STANDARD
DEVIATION UNKNOWN
SUMMARY

CONFIDENC
E
INTERVALS
WHEN

LARGE SMALL
SAMPLE SIZE SAMPLE SIZE

STD DEV STD DEV STD DEV STD DEV

KNOWN UNKNOWN KNOWN UNKNOWN
THANK YOU