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STATISTICAL ESTIMATION AND SMALL SAMPLING THEORIES

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UNIT 4

STATISTICAL ESTIMATION AND SMALL SAMPLING THEORIES

OBJECTIVES

GENERAL OBJECTIVE Use Statistics to make estimates of parameters SPECIFIC OBJECTIVE After completing this unit, you should be able to Find the confidence interval for the mean when is known. Determine the minimum sample size for finding a confidence interval for the mean. Find the confidence interval for the mean when is unknown and n < 30 . stimate the population parameters based on a large sample size using point and interval estimates and able to e!plain the concept of confidence interval stimate the mean of the population when the standard deviation of the population is known stimate the mean and standard deviation of a population from sample data stimate the mean of a population based on a small sample size

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INPUT INPUT

4.0

CONFIDENCE INTERVAL AND SAMPLE SIZE

"ne aspect of inferential statistics is estimation, which is the process of estimating the value of a parameter from information obtained from a sample. #ook at the following statements$ %"ne out of four &olytechnic students is currently dieting' %()* of +alaysians cannot afford to buy a brand new +ercedes ,enz' %-he average kindergarten students has seen more than ./// hours of television' -he average amount of pocket money for a &oly student is 0+.// per semester' Since the populations from which these values were obtained are large, these values are only estimates of the true parameters and are derived from data collected from samples. -he statistical procedure for estimating the populations mean, variance and standard deviation will be e!plained in this module. An important 1uestion in estimation is that of sample size. 2ow large should the sample be in order to make an accurate estimate3

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4.1 CONFIDENCE INTERVALS FOR THE MEAN

!"#$" #% " &0'

Suppose a &oly director wishes to estimate the average age of the students attending classes this semester. -he director could select a random sample of 4// students and find the average age of these students, say )).5 years. From the sample mean, the director could infer that the average age of all the students is )).5 years. -his type of estimate is called a (#i"t estimate. AA (#i"t estimate is aa specific numerical value estimate of (#i"t estimate is specific numerical value estimate of parameter. -he best point estimate of the population mean the parameter. -he best point estimate of the population mean is is the sample mean . sample mean.

Sample measures 6i.e., statistics7 are used to estimate population measures 6i.e., parameters7. -he sample mean is the best estimate of the population mean because the means of samples vary less than other statistics such as medians and modes when many samples are selected from the same population.

A good estimator should satisfy the three properties described ne!t. T)%ee (%#(e%ties #* +##, estimat#% -he estimator should be -".iase, estimat#%. -hat is, the e!pected value or the mean of the estimates obtained from samples of a given size is e1ual to the parameter being estimated. -he estimator should be consistent. For a /#"siste"t estimat#%, as sample size increases, the value of the estimator approaches the value of the parameter estimated. -he estimator should be a %e0ati1e02 e**i/ie"t estimat#%. -hat is, of all the statistics that can be used to estimate a parameter, the relatively efficient parameter has the smallest variance.

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4.1.1 CONFIDENCE INTERVALS As stated in the previous module, the sample mean will be, for the most part, somewhat different from the population mean due to sampling error. -hen, how good is point estimate3 As the accuracy of a point estimate is 1uestionable, statisticians use another type of estimate called an i"te%1a0 estimate.

An i"te%1a0 estimate of aa parameter is an interval or aa range of values An i"te%1a0 estimate of parameter is an interval or range of values used to estimate the parameter. -his estimate may or may not contain the used to estimate the parameter. -his estimate may or may not contain the value of the parameter being estimated . value of the parameter being estimated. For e!ample, an interval estimate for the average age of all the students might be )8.9: :)(.(, or )(.5 /.; years. ither the interval contains the parameter or it does not. A degree of confidence 6usually *7 can be assigned before an interval estimate is made. For instance, one may wish to be 9.* confident that the interval contains the true population mean. Another 1uestion then arises. <hy 9.*3 <hy not 99* or 99..*3 =f one desires to be more confident 699* or 99..*7, then the interval must be larger. For e!ample, a 99* confidence interval for the mean age of the &oly students might be )8.(: :)(.9, or )(.5 /.8. 2ence, a trade>off occurs. -o be more confident that the interval contains the true population mean, one must make the interval wider.

-he /#"*i,e"/e 0e1e0 of an interval estimate of a parameter is the probability that the interval estimate will contain the parameter. A /#"*i,e"/e i"te%1a0 is a specific interval estimate of a parameter determined by using data obtained from a sample and by using the specific confidence level of the estimate.

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=ntervals constructed in this way are called /#"*i,e"/e i"te%1a0s. -hree common confidence intervals are used$ -he 9/*, the 9.*, and the 99* confidence interval. -he central limit theorem states that when the sample size is large, appro!imately 9.* of the sample means will fall within 4.98 standard errors of the population mean. -hat is 1.96
n

?ow, if a specific mean is selected, say X , there is a 9.* probability that it falls within the range of 1.96 . #ikewise there is a 9.* probability that
n the interval specified by X 1.96 will contain . Stated another way, n X 1.96 : n

: X + 1.96
n

2ence, on can be 9.* confident that the population mean is contained within that interval when the values of the variable are normally distributed in the population. Since other confidence intervals are used in statistics, the symbol Z is used in 2 the general formula for confidence intervals. -he @reek letter 6alpha7 represents the total area in both of the tails of the standard normal distribution curve.

2 represents the area in each one of the tails.

-he relationship between and the confidence level is that the stated confidence level is the percentage e1uivalent to the decimal value of 4 > , and vice versa. <hen the 9.* confidence interval is to be found, A /./., since 4 B /./. A /.9.. <hen A /./4, the 4 > A 4 B /./4 A /.99, and the 99* confidence interval is being calculated.

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Formul "#$ Co%!&'$%($ I%"$r) o! "#$ M$ !or Formul !or !or "#$ Co%!&'$%($ I%"$r)l l o! "#$ M$%% !or S*$(&!&( S*$(&!&( <<<< For aa 95% confidence interval, 1.96; and for aa 99% confidence interval, For 95% confidence interval,== 1.96; and for 99% confidence interval, == 2.58 2.58

-he term z is called the ma!imum error of estimate. For a specific value, 2 n say A /./., 9.* of the sample means will fall within this error value on either side of the population mean.

The ma error of e"timate i"i" the ma li#el$ difference %et&een The maim!m im!m error of e"timate the maim!m im!m li#el$ difference %et&een the 'oint e"timate of a 'arameter and the act!al val!e of the 'arameter. the 'oint e"timate of a 'arameter and the act!al val!e of the 'arameter.

E3am(0e 4.1 4. "ne of the &olytechnic directors wishes to estimate the average age of the students currently enrolled. &er last year record, it is known that the standard deviation is ) years. A sample of ./ students is selected of which the mean age is )5.) years. Find the 9.* confidence interval of the population mean. A well known tonic drink is known to increase the pulse rate of its users. -he standard deviation of the pulse rate is known to be . beats per minute. A sample of 5/ users had an average pulse rate of 4/; beats per minute. Find the 99* confidence interval of the true mean. A sample of 5/ CkoperasiD has the mean 6 X 7 A 44./94 6assets in millions of 0+7 and the standard deviation s A 4;.;/.. Find the 9/* confidence interval of the mean.

).

5.

;. =t is re1uired to determine the mean diameter of a long length of wire. -he diameter of the wire is measured in 48 places selected at random throughout

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its length and the mean of these values is /.54; mm. =f the standard deviation of the diameter of the wire is given by the manufacturers as /./). mm, determine 6a7 the E/* confidence interval of the estimated mean diameter of the wire, and 6b7 with what degree of confidence it can be said that Cthe mean diameter is /.54; /./4 mmD.

S#0-ti#" t# E3am(0e 4.1


4. Since the 9.* confidence interval is desired, substituting in the formula X 1.96 )5.) B 4.98
Z = 1.96
2

. 2ence,

< < X + 1.96 n n

2 2 < < 23.2 + 1.96 50 50

)5.) B /.8: : )5.) F /.8 )).8 : : )5.E or )5.) 0.6 years. -he director can say, with9.* confidence, the average age of the students is between )).8 and )5.E years, based on ./ students.
Z = 2.58
2

). Since the 99* confidence interval is desired,


X 1.96 < < X + 1.96 n n

5 5 10( 2.58 < < 10( + 2.58 30 30 10( 2.( < < 10( + 2.( 101.6 < <106.( 102 < < 106 or 10(.2 2

"ne can be 99* confident that the mean pulse rate of all users is between 4/) and 4/8 beats per minute, based on a sample of 5/ users.

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5. STEP 1 =t is known that the mean 6 X 7 is 44./94 and the standard deviation 6s7 A 4;.;/. Find

STEP 4

2 . Since the 9/* confidence interval is to be used,

A 4 B /.9/ A /.4/, and 2 = 0.10 = 0.05 2


STEP & STEP 4 Find z . Subtract /./. from /../// to get /.;.//. -he 2 corresponding z from the table is 4.8.. Substitute in the formula
s s X z < < X + z 2 2 n n

6s is used in place of

when is unknown, since

n 30 7

1(.(05 1(.(05 11.091 1.65 < < 11.091 + 30 30


6.)52 L < <15.(30

2ence, one can be 9/* confident that the population mean of the assets is between 0+8.(.) million and 4..;5/ million, based on a sample of 5/ koperasi.

;. 6a7 For the population$ A /./). mm, for the sample$ ? A 48, x A /.54;, because an infinite number of measurements can be obtained for the diameter of the wire, the population is infinite and the estimated value of the confidence interval of the population mean is given by

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X z 2 n

1.28+0.025* = X z = 0.31( 0.008 A 0.31(


2

16

mm. -hat is, t)e 506 /#"*i,e"/e i"te%1a0 is *%#m 0.&07 mm t# 0.&44mm . -his indicates that the estimated mean diameter of the wire is between /.5/8 and /.5)) and that this prediction is likely to be correct E/ times out of 4//. b7 -o determine the confidence level, the given data is e1uated to e!pression /.54; /./4 mm A X z
2

A 1.6 , i.e z 2 n

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ACTIVIT8 4A

TEST 8O9R 9NDERSTANDING , F"0 &0"G =?&U-IJ

D=?@ -" -2 ? H-

4. <hat is the difference between a point estimate and an interval estimate of a parameter3 <hich is better3 <hy3 ). <hat is the ma!imum error of estimate3 5. <hat are the three properties of a good estimator3 ;. <hat is necessary to determine a sample size3 .. Find each$ z for the 99* confidence interval a7 2 b7 c7 d7 e7 8.
z for the 9E* confidence interval 2

z for the 9.* confidence interval 2


z for the 9/* confidence interval 2

z for the 9;* confidence interval 2

A sample of the mathematics test scores for 5. first semester students has a mean of E). -he standard deviation of the sample is 4.. a7 Find the 9.* confidence interval of the mean test scores of the entire first semester students. b7 c7 Find the 99* confidence interval of the mean test scores of the entire first semester students. <hich interval is larger3 !plain why.

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SOL9TION TO ACTIVIT8 4A

4.

A point estimate of a parameter specifies a specific value, such as A E(K an interval estimate specifies a range of values for the parameter, such as E;: :9/. -he advantage of an interval estimate is that a specific confidence level 6say 9.*7 can be selected, and one can be 9.* confident that the interval contains the parameter that is being estimated. -he ma!imum error of estimate is the likely range of values to the right or left of the statistic which may contain the parameter. A good estimator should be unbiased, consistent, and relatively efficient. For one to be able to determine sample size, the ma!imum error of estimate and degree of confidence must be specified and the population standard deviation must be known. a7 )..E b7 ).55 c7 4.98 d7 4.8. e7 4.EE a7 ((: :E( b7 (.::E9 c7 -he 99* confidence interval is larger because the confidence level is larger.

). 5. ;.

..

8.

INPUT INPUT

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4.4

SAMPLE SIZE

Sample size determination is closely related to statistical estimation. 2ow large a sample necessary to make an accurate estimate3 -he answer depends on three things$ the ma!imum error of estimate, the population standard deviation, and the degree of confidence. For the purpose of this unit, it is assumed that the population standard deviation of the variable is known or has been estimated from the previous study. -he formula for sample size is derived from the ma!imum error of estimate formula,
E = z and this formula is solved for n as follows$ 2 n 2 z . n= E
2

E3am(0e 4.4
Lou are asked to estimate the average age of the students in this &oly. 2ow large a sample is necessary3 Lou want to be confident that the estimate should be accurate within one year. From the previous study, the standard deviation of the ages is known to be 5 years.

S#0-ti#" t# E3am(0e 4.4


= )..E, and Since = 0.01 or 4 B /.99, z 2 formula, you get

A 4, substituting in the

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2 z . +2.58*+3* 2 n= A A .9.9 which is rounded up to 8/. <ell, you E 1

need a sample size of at least 8/ students in order to be 99* confident that the estimate is within 4 year of the true mean age.

ACTIVIT8 4B

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TEST 8O9R 9NDERSTANDING , F"0 &0"G =?&U-IJ

D=?@ -" -2 ? H-

4. A study of ;/ poly lecturers showed that they spent, on average, 4).8 minutes correcting a studentDs weekly 1uiz. a7 Find the 9/* confidence interval of the mean time for all 1uizzes when A ).. minutes. b7 =f a lecturer stated that he spent, on average, 5/ minutes correcting a 1uiz, what would be your reaction3 ). A study found that &oly students spend an average of 0+4E..// per month for the cellular phone bills. =f a sample of ;9 students was used, find the 9/* confidence interval of the mean. Assume the standard deviation of the sample is 0+4..8. -he mean weight of E; soil samples is 84.) grams and the standard deviation is (.9 grams. Find the 9.* confidence interval for the true mean. A poly director wishes to estimate the average number of hours his part>time lecturers teach per week. -he standard deviation from the previous study is ).8 hours. 2ow large a sample must be selected if he wants to be 99* confident of finding whether the true mean differs from the sample mean by 4 hour3

5. ;.

.. Lou are re1uired to estimate the fresh weights of concrete cubes. 2ow large a sample must be selected if you are re1uired to be 9/* confident that the true mean is within 8// grams of the sample mean3 -he standard deviation of the fresh weights is known to be E// grams. 8. A class lecturer would like to estimate the average number of sick days that students use per year. =t is assumed that the standard deviation is ).. days. 2ow large a sample must be selected if the lecturer wants to be 9.* confident of getting an interval that contains the true mean with a ma!imum error of 4 day3

SOL9TION TO ACTIVIT8 4B

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4. 6a7 44.9 : : 45.5

6b7 =t would be highly unlikely, since this is far larger than 45.5

). 0+4E.45 : : 0+4E.E( 5. .9.. : : 8).9 ;. ;. .. . 8. ).

INPUT INPUT

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4.&

CONFIDENCE INTERVALS FOR THE MEAN

-":"#$" a", ";&0'

<hen is known and the variable is normally distributed or when is unknown and n 5/, the standard normal distribution is used to find confidence intervals for the mean. 2owever, in many situations, the population standard deviation is not known and the sample size is less than 5/. =n such situations, the standard deviation from the sample can be used in place of the population standard deviation for confidence intervals. ,ut somewhat different distribution, called the t ,ist%i.-ti#", must be used when the sample size is less than 5/ and the variable is normally or appro!imately distributed. C)a%a/te%isti/s #* t)e t Dist%i.-ti#" -he t distribution shares some characteristics of the normal distribution and differs fro it in others. -he t distribution is similar to the standard normal distribution in the following ways. 4. ). 5. ;. =t is bell>shaped. =t is symmetrical about the mean. -he mean, median, and mode are e1ual to / and are located at the center of the distribution. -he curve never touches the !>a!is.

-he t distribution differs from the standard normal distribution in the following ways. 4. ). -he variance is greater than 4. -he t distribution is actually a family of curves based on the concept of ,e+%ees #* *%ee,#m, which is related to the sample size.

5. As the sample size increases, the t distribution approaches the Standard normal distribution See the figure below.

+any statistical distributions use the concept of degrees of freedom, and the formulas for finding the degrees of freedom vary for different statistical tests. -he degrees of freedom are the number of values that are free to vary after a sample

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statistic has been computed, and they tell researcher which specific curve to use when a distribution consists of a family of curves. For e!ample, if the mean of . values is 4/, then ; of the . values are free to vary. ,ut once ; values are selected, the .th value must be a specific number to get a sum of ./. Since ./M. A 4/. 2ence, the d.f. are . B 4 A ;, and this value tells the researcher which t curve to use. -he symbol d.f. will be used for degrees of freedom. -he d.f. for a confidence interval for the means are found by subtracting 4 from the sample size, i.e d.f. A n B 4. Formula for a Specific Gonfidence =nterval for the +ean <hen =s Unknown and n:5/
s s X t < < X + t 2 2 n n

-he degrees of freedom are n > 4 N#tes< =)e" t# -se t)e > #% t ,ist%i.-ti#"

0e" ," #no&n .o 0e" ," n .o -"e val!e" and " in the form!la

-"e val!e" no matter &hat the "am'le "i/e i"

-"e val!e" and " in 'lace of ,n the form!la

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E3am(0e 4.&
4. Find the t value for a 9.* confidence interval when the sample size is 2 )). -en randomly selected automobiles were stopped, and the tread depth of the right front tire was measured. -he mean was /.5) mm, and the standard deviation was /./E mm. Find the 9.* confidence interval of the mean depth. Assume that the variable is appro!imately normally distributed. -he data represent a sample of the number of home fires started by candles for the past several years. Find the 99* confidence interval for the mean number of home fires started by candles each year. .;8/ 995/ .9// 8/9/ 854/ (48/ E;;/

).

5.

S#0-ti#" t# E3am(0e 4.& 4. d.f. A )) >4, or )4. Find )4 in the left column and 9.* in the row labeled %confidence intervals.' -he intersection where the two meet give the value for t , which is )./E/. See the figure below. ?ote$ At the bottom of the 2 table where d.f. A , the z can be found for specific confidence 2 intervals. -he reason is that as the degrees of freedom increase, the t distribution approaches the standard normal distribution. ). Since is unknown and s must replace it, the t distribution 6see table CFD7 must be used for 9.*. 2ence with 9 degrees of freedom, t A ).)8). 2 -he 9.* confidence interval of the population mean is found by substituting in the formula

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s s 0.08 X t < < X + t = 0.32 +2.62* A , 0.26 < < 0.38 2 2 n n 10

-herefore, one can be 9.* confident that the population mean tread depth of all right front tires is between /.)8 and /.5E mm based on a sample of 4/ tires.

3. STEP 1 Find the mean and standard deviation for the data Use the formulas or your calculator -he mean X A (/;4.; -he standard deviation s A 484/.5 Find t from table CFD. Use the 99* confidence interval with 2 d.f. A 8. =t is 5.(/(. Substitute in the formula and solve
s s X t < < X + t 2 2 n n

STEP 4

STEP &

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1610.3 1610.3 )0(1.( 3.)0) < < )0(1.( + 3.)0) ) )

;(E..): :9)9(.8

"ne can be 99* confident that the population mean of home fires started by candles each year is between ;(E..) and 9)9(.8, based on a sample of home fires occurring over a period of ( years.

ACTIVIT8 4C

TEST 8O9R 9NDERSTANDING , F"0 &0"G =?&U-IJ

D=?@ -" -2 ? H-

F#% t)e *#00#$i"+ a/ti1ities? ass-me t)at a00 1a%ia.0es a%e a((%#3imate02 ,ist%i.-te,.

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4.

A sample of E measurements of the diameter of a bar are made and the mean of the sample is ).;(/ cm. -he standard deviation of the samples is /.)4 mm. Determine 6a7 the 9.* confidence interval and 6b7 the E/* confidence interval for an estimate of the actual diameter of the bar. A sample of 4. electric lamps are selected randomly from a large batch and are tested until they fail. -he mean and standard deviation of the time to failure are 44(( hours and ). hours respectively. Determine the confidence level based on estimated failure time of 44(( ..E hours. -he value of the ultimate tensile strength of a material is determined by measurements on 4/ samples of materials. -he mean and standard deviation of the results are found to be ;.5E +pa and /./8 +pa respectively. Determine the 9.* confidence interval for the mean of the ultimate tensile strength of the material. Use data in problem N5 above to determine the 99* confidence interval for the mean of the ultimate tensile strength of the material. -he time taken for a chemical reaction to take place is measured . times and is found to be$ /.)E hours, /.5/ hours, /.)( hours, /.55 hours and /.54 hours. Determine the 9.* and 99* confidence intervals for the estimated true reaction time.

).

5.

;. ..

SOL9TION TO ACTIVIT8 4C
1. ). 6a7 -he 9.* confidence interval are ).;.. cm and ).;E. cm. 6b7 -he E/* confidence interval are ).;85 cm and ).;(( cm. =t is likely that E/* of all the lamps will fail between 44(4.) and 44E).E hours. 6 t A /.E8E7. 2 ;.;4(: :;.5;5 ;.5);: :;.;58 /.)(.: :/.5)4K /.).E: :/.55E

5. ;. ..

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SELF ASSESSMENT 4

Lou are approaching success. T%2 a00 t)e @-esti#"s in this self> assessment section and check your answers on the ne!t page. =f you encounter any problems, consult your instructor. @ood luck. 4. <hen should the t distribution be used to find a confidence interval for the

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mean3 ). Determine whether the statement is true or false. =f the statement is false, e!plain why. a7 =nterval estimate are preferred over point estimates since a confidence level can be specified. b7 An estimator is consistent if, as the sample size decreases, the value of the estimator approaches the value of parameter estimated.

Se0e/t t)e .est a"s$e%. 5. <hen a 99* confidence interval is calculated instead of 9.* confidence interval with n being the same, the ma!imum error of estimate will be a. Smaller b. #arger c. -he same d. =t cannot be determined

;.

<hen the population standard deviation is unknown and sample size is less than 5/, what table value should be used in computing a confidence interval for a mean. a. z b. t c. ?one of the above Gomplete the following statement with the best answer.

..

-he ma!imum difference between the point estimate of a parameter and the actual value of the parameter is calledOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO. -he three confidence intervals used most often are the OOOO*, OOOOOO*, and OOO*.

8.

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(.

-he specific resistance of a reel @erman silver wire of nominal diameter /.. mm is estimated by determining the resistance of ( samples of the wire. -hese were found to have resistance values 6in ohms per meter7 of 4.4), 4.4., 4.4/, 4.4;, 4.4., 4.4/ and 4.44. Determine the 9.* confidence interval for the true specific resistance of the reel of wire. =n determining the melting point of a metal, . determinations of the melting point are made. -he mean and standard deviation of the five results are )5).)(oG and /.(;)oG. Galculate the confidence with which the prediction Cthe melting point of the metal is between )5).;E oG and )55./8oGD can be made. -he standard deviation of the masses of .// blocks is 4./ kg. A random sample of ;/ blocks have a mean mass of ).;/ +g. a7 Determine the 9.* and 99* confidence intervals for estimating the mean mass of the remaining ;89 blocks, and b7 <ith what degree of confidence can it be said that the mean mass of the remaining ;8/ blocks is ).;/ /./5.+g3

E.

9.

I" t)e *#00#$i"+ e3e%/ises? ass-me t)at a00 1a%ia.0es a%e a((%#3imate02 "#%ma002 ,ist%i.-te,. 4/. -he average hemoglobin for a sample of )/ lecturers was 48 grams per 4// milliliters, with a sample standard deviation of ) grams. Find the 99* confidence interval of the true mean. A sample of 8 adult elephants had an average weight of 4))// pounds, with a sample standard deviation of )// pounds. Find the 9.* confidence interval of the true mean. A recent study of )E city residents showed that the mean of the time they had lived at their present address was 9.5 years. -he standard deviation of the sample was ) years. Find the 9/* confidence interval of the true mean.

44.

4).

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45.

A recent study of ). students showed that they spent an average 0+4E..5 for petrol per week, the standard deviation of the sample was 0+5.//. Find the 9.* confidence interval of the true mean. -he average yearly income for )E married couple in &oliteknik is 0+.E)49.//. -he standard deviation of the sample is 0+.8.//. Find the 9.* confidence interval of the true mean.

4;.

4. -he t distribution should be used when ). 6a7 -rue 5. b ;. b .. +a!imum error of estimate 8. 9/K 9.K 99 (. 4.44 m 1 : : 4.4; m 1 E. 9.* 6b7 False

is unknown and n:5/.

FEEDBAC! TO SELF ASSESSMENT 4

9. 6a7 ).5.. : : ).;;.K ).5;4 : : ).;.9 6b7 E8* 4/. 4.: :4( 2ave you tried the 1uestions333 =f %L S', check your answers now. 44. 4499/: :4);4/ 4). E.(: :9.9 45. 0+ 4(.)9: :0+ 49.(( 4;. 0+ .E49(.//: :0+ .E);4.//

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