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Confidence Intervals and Sample Size

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lu49076_ch07.qxd 5/20/2003 3:16 PM Page 360<br />

360 Chapter 7 <strong>Confidence</strong> <strong>Intervals</strong> <strong>and</strong> <strong>Sample</strong> <strong>Size</strong><br />

Important Terms<br />

chi-square<br />

distribution 354<br />

confidence interval 328<br />

confidence level 328<br />

consistent estimator 327<br />

Important Formulas<br />

7–36<br />

There are two types of estimates of a parameter: point estimates <strong>and</strong> interval estimates.<br />

A point estimate is a specific value. For example, if a researcher wishes to estimate<br />

the average length of a certain adult fish, a sample of the fish is selected <strong>and</strong><br />

measured. The mean of this sample is computed, for example, 3.2 centimeters. From<br />

this sample mean, the researcher estimates the population mean to be 3.2 centimeters.<br />

The problem with point estimates is that the accuracy of the estimate cannot be determined.<br />

For this reason, statisticians prefer to use the interval estimate. By computing<br />

an interval about the sample value, statisticians can be 95% or 99% (or some other percentage)<br />

confident that their estimate contains the true parameter. The confidence level<br />

is determined by the researcher. The higher the confidence level, the wider the interval<br />

of the estimate must be. For example, a 95% confidence interval of the true mean length<br />

of a certain species of fish might be<br />

3.17 � m � 3.23<br />

whereas the 99% confidence interval might be<br />

3.15 � m � 3.25<br />

When the confidence interval of the mean is computed, the z or t values are used,<br />

depending on whether the population st<strong>and</strong>ard deviation is known <strong>and</strong> depending on the<br />

size of the sample. If s is known or n � 30, the z values can be used. If s is not known,<br />

the t values must be used when the sample size is less than 30 <strong>and</strong> the population is normally<br />

distributed.<br />

Closely related to computing confidence intervals is the determination of the sample<br />

size to make an estimate of the mean. This information is needed to determine the<br />

minimum sample size necessary.<br />

1. The degree of confidence must be stated.<br />

2. The population st<strong>and</strong>ard deviation must be known or be able to be estimated.<br />

3. The maximum error of estimate must be stated.<br />

<strong>Confidence</strong> intervals <strong>and</strong> sample sizes can also be computed for proportions, using<br />

the normal distribution; <strong>and</strong> confidence intervals for variances <strong>and</strong> st<strong>and</strong>ard deviations<br />

can be computed, using the chi-square distribution.<br />

degrees of freedom 340<br />

estimation 326<br />

estimator 327<br />

interval estimate 328<br />

Formula for the confidence interval of the mean when s is<br />

known (when n � 30, s can be used if s is unknown):<br />

X � z A�2� S<br />

�n� � M � X � z A�2� S<br />

�n�<br />

maximum error of<br />

estimate 329<br />

point estimate 327<br />

proportion 346<br />

Formula for the sample size for means:<br />

n � � z A�2 � S<br />

E � 2<br />

where E is the maximum error.<br />

relatively efficient<br />

estimator 327<br />

t distribution 340<br />

unbiased estimator 327

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