Transcript Slide 1

CHAPTER 7
Confidence Intervals
“Estimating Population
Parameters”
Chapter 7 Summary
By Chris Schulze
Gonick: The Cartoon Guide To Statistics (Chapter 7)
STATISTICAL INFERENCES

Given a single observation how do we use p and X
to evaluate it?
Gonick: The Cartoon Guide To Statistics (Chapter 7)
INDUCTION

Inductive Reasoning is reasoning from a specific
case to a general rule.

Going from a set of observations to a hypothesis.
Gonick: The Cartoon Guide To Statistics (Chapter 7)
CHAPTER 7 – CONFIDENCE INTERVALS
It is a range of values used to estimate the true
value of a population parameter.
 By providing a range of values likely to contain the
population parameter of interest, confidence
intervals help to determine how well the sample
statistic estimates the underlying population value.
 The width of the confidence interval gives us some
idea about how uncertain we are about the
unknown parameter.

Gonick: The Cartoon Guide To Statistics (Chapter 7)
CONFIDENCE INTERVAL


To estimate the probability of success in the full population, you
can report a range around the probability of success found in the
sample.
The size of the range depends on the confidence level
 95% is commonly used
 Other common confidence intervals are: 90% and 99%.
Gonick: The Cartoon Guide To Statistics (Chapter 7)
CONFIDENCE INTERVAL (CONT.)


A 95% confidence interval is created by using the “two standard
deviations” rule except that you use standard error instead of the
standard deviation.
The standard error is defined as:
SE (p) = p(1-p)
n
SE = Standard Error
n = Sample Size
p = Probability of Success

You can claim, with 95% confidence, that the probability of
success in the full population is in the interval p ± 2SEp.
.95 ≈ Pr (p – 1.96SE(p) ≤ p ≤ p + 1.96SE(p))

The size of the standard error depends on the sample
Gonick: The Cartoon Guide To Statistics (Chapter 7)
ESTIMATING THE MEAN


To estimate the mean of some full population, you can report a range
around the mean ¯x of the sample. Again, the size of the range depends on
the desired confidence level.
For a 95% confidence interval you again use twice the standard error
where the standard error is defined as:
s = standard deviation of the sample
n = sample size

SE (X) =
s
n
You can claim with 95% confidence that the mean of the full population is
in the interval x ± 2SEx.
.95 ≈ Xr (x – 1.96SE(x) ≤ x ≤ x + 1.96SE(x))

The standard error depends on the sample size

The confidence interval can be made smaller by increasing the sample size.
Gonick: The Cartoon Guide To Statistics (Chapter 7)
ESTIMATING THE MEAN (EXAMPLE)

The equation:
SE (X) =

s
n
Example:


Mean of 90 and standard deviation of 12.
The figure shows the distribution


The shaded area is the middle 95% of the distribution
(66.48-113.52)
90 - (1.96)(12) = 66.48
90 + (1.96)(12) = 113.52
Gonick: The Cartoon Guide To Statistics (Chapter 7)
KEY TERMS TO REMEMBER





Induction
Confidence Interval
Estimating the Mean
Standard Error
90%, 95%, 99% confidence interval
Gonick: The Cartoon Guide To Statistics (Chapter 7)
Helpful Websites






http://www.dimensionresearch.com/index.html
http://stattrek.com
http://easycalculation.com/statistics
http://www.tutorvista.com
http://www.stat.yale.edu/Courses/1997-98/101/fonfint.htm
http://mathworld.wolfram.com/ConfidenceInterval.html
Gonick: The Cartoon Guide To Statistics (Chapter 7)
REFERENCES






http://www.wikipedia.org/
http://www.khanacademy.org/
http://onlinestatbook.com/chapter8/mean.html
http://www.stat.yale.edu/Courses/1997-98/101/confint.htm
The Cartoon Guide to Statistics, Gonick, 1993
An Introduction to Statistical Problem Solving in
Geography, McGrew, 1993
Gonick: The Cartoon Guide To Statistics (Chapter 7)