Probability and Statistics

Lecturer: Muhammad Zakria Awan 1

 Interval Estimation of 1 - 2: s 1 and s 2 Known

Interval Estimate

where: 1 -  is the confidence

coefficient.

Lecturer: Muhammad Zakria Awan 2

Example:
Based on data from previous customer demographic studies,
the two population standard deviations are known with σ 1 = 9
years and σ2 = 10 years. The data collected from the two
independent simple random samples of medical store
customers provided the following results.
Inner City medical Store Outer City medical Store
Sample Size n1 = 36 n2 = 49
Sample Mean X̅ 1 = 40 years X̅ 2 = 35 years
Find the confidence interval of the difference
between the mean ages of the two populations. Use
5% level of significance.
Lecturer: Muhammad Zakria Awan 3
 Solution

40
5 – 4.06; 5 + 4.06
0.94 to 9.06

Interpretation: we are 95% confident that the difference

between the ages of two population will be from 0.94
years to 9.06 years. It implies that the difference between
the ages of two customer groups, who shop from the inner
city store and who shop from outer city store, is between
0.94 years to 9.06 years.
Lecturer: Muhammad Zakria Awan 4
 Example
A study of 50 kids in a large state reveals that
they on average, sleep for 7.5 hours a day with a
standard deviation of 1.2 hours. A study of 50
kids in another large state reveals that they on
average, sleep for 6.5 hours a day with a
standard deviation of 1.5 hours. Calculate the
90% confidence interval estimating the
difference of the two population means.

Lecturer: Muhammad Zakria Awan 5

 Solution
7.5
1
1 – 0.4468; 1 + 0.4468
0.5532 to 1.4468
we are 90% confident that the difference
between the average sleep of two population will
be from 0.5532 to 1.4468.

Lecturer: Muhammad Zakria Awan 6

Lecturer: Muhammad Zakria Awan 7
 Solution

Lecturer: Muhammad Zakria Awan 8

 Two Population Means: s 1 and s 2 Unknown

Interval Estimation of m1 – m2
When s 1 and s 2 are unknown, we will:
use the sample standard deviations s1 and s2 as
estimates of s 1 and s 2 , and replace za/2 with
ta/2.
Interval Estimate

df (for two samples) = n1 + n2 -2

Lecturer: Muhammad Zakria Awan 9
 Example
A researcher found that 25 male elephants in a
large zoo, on average, drink 50 gallons of water
each day with a standard deviation of 5 gallons.
He also found that 25 female elephants in the
same zoo, on average, drink 47 gallons of water
each day with a standard deviation of 5 gallons.
What is the 99% confidence interval for the
difference of the two population means?

Lecturer: Muhammad Zakria Awan 10

 Solution

50
50 - 47 ± 2.6822 * 1.414214.
3 ± 3.7932
-0.7932 to 6.7932
we are 99% confident that the difference between
of the two population means gallons of water is -
0.7932 to 6.7932.

Lecturer: Muhammad Zakria Awan 11