ESTIMATION OF PARAMETERS

CONFIDENCE INTERVAL
OBJECTIVE:
At the end of the lesson, students are
expected to apply the normal curve
concepts in computing the interval
estimates.
 ENTRY CARD:
𝜎
1. The expression ( ) is referred to as:
𝑛

a. Mean of the sampling distribution

b. Standard deviation of the sampling distribution
c. Mean of the sampling distribution of proportions
d. Standard deviation of the sampling distribution of proportions.

2. In a standard normal distribution, what percent of the area falls below the mean?
a. 95% c. 90%
b. 68% d. 50%
ENTRY CARD:
3. About what percent of the area under the normal distribution
lies within 1 standard normal deviation below and above the
mean?
a. 95% c. 90%
b. 68% d. 50%
 RECALL:
 The standard normal distribution is a normal
probability distribution with a mean of 0 and
a standard deviation of 1.
 The area under the normal curve is 1 or
100%.
 Central Limit Theorem, as the sample size n
increases without limit, the shape of the
distribution of the sample means taken with
replacement from a population with mean
and standard deviation will approach normal
distribution
 The area under the normal curve is 1 or 100%.
The proportion of the area between 1 standard
deviation unit below the mean and 1 standard
deviation unit above the mean is approximately
68%. The middle 95% is the proportion of the
region above z= -1.96 and z= 1.96. These z-
values determine the 95% confidence interval
estimates. Similarly, the middle 99% is the
proportion of the area bound by z=-2.58 and
z=2.58. These z-values are also called
confidence coefficients or critical values.
DETERMINING CONFIDENCE INTERVAL
The general formula for confidence intervals for large samples is:
𝝈 𝝈
ഥ
𝑿 − 𝒛𝜶 < µ < 𝑿 + 𝒛𝜶
𝟐 𝒏 𝟐 𝒏

For example: 95% confidence intervals when the sample size is large,
Applying the CLT, approximately 95% of the sample means taken from the
population with µ will fall within ±1.96 standard errors. Of the population
mean. This means that the interval estimate is given by
𝝈 𝝈
µ −1.96 𝒕𝒐 µ +1.96
𝒏 𝒏

Thus, if the sample mean is specified, there is a 95% probability that the
𝝈 𝝈
interval 𝑿 −1.96 < µ < 𝑿 +1.96 ഥ
contains 𝑿.
𝒏 𝒏
 DETERMINING CONFIDENCE INTERVAL
The general formula for confidence intervals for large samples is:
𝝈 𝝈
ഥ
𝑿 − 𝒛𝜶 < µ < 𝑿 + 𝒛𝜶
𝟐 𝒏 𝟐 𝒏

𝜶
If the confidence is 95%, then 𝜶 in is remaining 5% or 0.05. This is the
𝟐
proportion of the area that is distributed in both tails of the standard
normal distribution curve. This area is outside the boundaries of the interval
𝜶 0.05
estimate. So, the area at each tail is or which is equal to 0.025
𝟐 2
DETERMINING CONFIDENCE INTERVAL
In analogous manner, there is a 95% probability
that the interval specified by
𝜎 𝜎
𝑋ത − 1.96 < µ < 𝑋 + 1.96 will contain Acceptance
𝑛 𝑛 Region
µ.
In the general formula for determining the
interval estimate for the parameter µ, the value
𝜎
ത
𝑋−𝑧 𝛼 is called the lower confidence
2 𝑛
boundary or limit and the other value 𝑋ത +
𝜎
𝑧 𝛼 is called the upper confidence
2 𝑛
boundary or limit.
MARGIN OF ERROR
𝜎
 In the general formula for a confidence interval, the term 𝑧𝛼 is
2 𝑛
called the margin of error, denoted by E, which is define as the
maximum likely difference between the observed sample mean and the
true value of the population mean. Thus, another way of writing the
formula for finding the confidence interval for the population parameter
µ is: 𝑋ത − 𝐸 < µ < 𝑋ത + 𝐸
 However, when σ is not known (as is often the case), the sample
standard deviation s is used to approximate σ. So the formula for E is
𝜎 𝑠
modified: 𝐸 = 𝑧𝛼 ≈ 𝑧𝛼
2 𝑛 2 𝑛
ROUNDING RULE FOR CONFIDENCE
INTERVAL FOR A MEAN.

 In computing a confidence interval for a population

mean by using raw data, round off to one decimal place
than the number of decimal place in the original data.
 In Computing a confidence interval for a population
mean by using a sample mean and a standard deviation,
round off to the same number of decimal places as given
for the mean.
SEATWORK
Using the same process we did in the
discussion, provide the interval estimates
of:
90 % confidence interval
99% confidence interval
GENERALIZATION
The general formula for confidence intervals for large samples is:
𝜎 𝜎
𝑋ത − 𝑧𝛼 < µ < 𝑋 + 𝑧𝛼 or 𝑋ത − 𝐸 < µ < 𝑋 + 𝐸
2 𝑛 2 𝑛

Whereas,
𝜎
 𝑋ത − 𝑧𝛼 is called the lower confidence boundary or limit; and
2 𝑛

𝜎
 the other value 𝑋ത + 𝑧𝛼 is called the upper confidence boundary
2 𝑛
or limit.
GENERALIZATION:

Z Score or Confidence Confidence Level 𝜶

Coefficient
1.65 90% or 0.90 10% or 0.10
1.96 95% or 0.95 5% or 0.05
2.58 99% or 0.99 1% or 0.01

𝜶 is the area outside the boundaries of the interval estimate

(rejected area in the normal curve).
ACTIVITY 3:

The sample information consists of X = 72, n = 120 and 𝜎 = 3 at

95% confidence interval.
a. Find the point estimate for the population mean Xx = 72
b. Determine the confidence coefficient 1.96
c. Find the margin of error E 0.54
d. Find the lower and upper confidence limits 71.46 to 72.54
e. Describe the results. We can say that with 95% confidence level the
interval between 71.46 and 72.54 contains the
population mean 𝝁 based on a sample size of 120
SEATWORK 1

Given: n= 48, 𝑋ത = 88 and 𝜎= 5. The sampled population is normally

distributed at 99% confidence level.
a. Find the point estimate for the population mean
b. Determine the confidence coefficient
c. Find the maximum error E
d. Find the upper and lower confidence limit
e. Find the confidence interval
SEATWORK 2

Given: n= 77, 𝑋ത = 102 and 𝜎= 7. The sampled population is normally

distributed at 90% confidence level.
a. Find the point estimate for the population mean
b. Determine the confidence coefficient
c. Find the maximum error E
d. Find the upper and lower confidence limit
e. Find the confidence interval
SEATWORK 3
A researcher want to estimate the number of hours that 5 year old
children spend watching television. A sample of 50 five year old children
was observed to have a mean viewing time of 3 hours. The population is
normally distributed with a population standard deviation 𝜎 = 0.5 at 95%
confidence interval, find:
a. Point Estimate
b. Determine the confidence coefficient
c. Find the margin of error
d. Find the interval estimate
e. Describe the result
SEATWORK 4
1. Write a formula for computing the interval estimate of the
population mean µ for:
 90% confidence
 99% confidence
2. Draw a normal curve showing the confidence coefficient in the
interval estimate for:
 90% confidence
 99% confidence
SEATWORK 5

Given: n= 80, 𝑋ത = 120 and 𝜎= 25. The sampled population is normally

distributed at 90% confidence level.
a. Find the point estimate for the population mean
b. Determine the confidence coefficient
c. Find the maximum error E
d. Find the confidence interval
 SEATWORK 6
The time X (in s) taken for a certain chemical reaction is normally distributed with
standard deviation of 5 s. To estimate the mean time taken from the reaction, 30
experiments are conducted and the reaction times are recorded as follows:
11.1 13.2 9.8 12.1 10.9 12.2 14.3 10.8 11.7 10.7
12.5 11.8 10.4 12.6 9.8 9.7 9.4 11.5 11.3 13.2
13.1 13.4 14 14.2 11.5 11.6 10.9 12.2 12.4 11.5
a. Using the above data, construct a 95% confidence interval for the mean reaction
time.
b. Using the above data, construct a 99% confidence interval for the mean reaction
time.
SEATWORK NO. 7

Write a formula for computing the interval estimate of

the population mean µ for 95% confidence level and its
corresponding normal curve showing the confidence
coefficient.
SCRIPTURES:

Be completely humble and

gentle; be patient, bearing with
one another in love.
Ephesians 4:2