๐Ÿ”’inference

Confidence Interval for the Mean

xฬ„ ยฑ z*(ฯƒ/โˆšn) or xฬ„ ยฑ t*(s/โˆšn)

A confidence interval provides a range of plausible values for the population mean based on sample data. When the population standard deviation is known, use the z-interval; when it is unknown and estimated by s, use the t-interval. The confidence level (e.g., 95%) reflects how often the procedure produces intervals that contain the true mean.

Variables

xฬ„=Sample Mean

The point estimate of the population mean

z* or t*=Critical Value

The z* or t* value corresponding to the desired confidence level

ฯƒ or s=Standard Deviation

Population standard deviation (ฯƒ) or sample standard deviation (s)

n=Sample Size

The number of observations in the sample

Example Calculation

Scenario

A sample of 36 light bulbs has a mean lifetime of 1200 hours with a known population standard deviation of 120 hours. Construct a 95% confidence interval.

Given Data

xฬ„:1200 hours
ฯƒ:120 hours
n:36
z*:1.96 (for 95% confidence)

Calculation

xฬ„ ยฑ z*(ฯƒ/โˆšn) = 1200 ยฑ 1.96(120/โˆš36) = 1200 ยฑ 1.96(20) = 1200 ยฑ 39.2

Result

(1160.8, 1239.2) hours

Interpretation

We are 95% confident that the true population mean lifetime of the light bulbs falls between 1160.8 and 1239.2 hours. If we repeated this procedure many times, about 95% of the resulting intervals would contain the true mean.

When to Use This Formula

  • โœ“Estimating the population mean with a quantified level of uncertainty
  • โœ“Reporting results in research papers alongside point estimates
  • โœ“Determining whether a hypothesized value is plausible for the population mean
  • โœ“Planning sample sizes by inverting the margin of error formula

Common Mistakes

  • โœ—Using z* when the population standard deviation is unknown (should use t*)
  • โœ—Interpreting the interval as a probability statement about the specific interval rather than the procedure
  • โœ—Forgetting that larger confidence levels produce wider intervals
  • โœ—Not checking that the sample is random and the sampling distribution is approximately normal

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FAQs

Common questions about this formula

It means that if you repeated the sampling and interval construction process many times, approximately 95% of those intervals would contain the true population mean. It does not mean there is a 95% probability that this particular interval contains the mean; the true mean is fixed, not random.

Use z* when the population standard deviation (ฯƒ) is known and the population is normal or n is large. Use t* when ฯƒ is unknown and you estimate it with the sample standard deviation (s). In practice, t-intervals are far more common because ฯƒ is rarely known.

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