INTERVAL ESTIMATES

ED NEIL O. MARATAS
BS STATISTICS, MA MATHEMATICS
 ESTIMATION – The process of
estimating the value of a parameter
from information obtained in a sample
POINT ESTIMATE – Specific numerical value
estimate of a parameter. Ex. Population mean
μ the point estimate is sample mean x bar
INTERVAL ESTIMATE – is an interval or a
range of values use to estimate the
parameter.
 Statistic is used to estimate parameter and
this is called estimator. A good estimator
must satisfy the following properties:
1. It must be an unbiased estimator.
2. It must be consistent.
3. It must be relatively efficient estimator.
 CONFIDENCE INTERVALS FOR THE MEAN
WHEN STANDARD DEVIATION IS KNOWN OR
n>=30
𝝈 𝝈
FORMULA: 𝒔𝒂𝒎𝒑𝒍𝒆 𝒎𝒆𝒂𝒏 − 𝒛
𝜶 < 𝝁 < 𝒔𝒂𝒎𝒑𝒍𝒆 𝒎𝒆𝒂𝒏 + 𝒛
𝜶
𝟐 𝒏 𝟐 𝒏

FOR A 95% CONFIDENCE INTERVAL, 𝒛𝜶 =1.96

𝟐

FR A 99% CONFIDENCE INTERVAL, 𝒛𝜶 =2.58

𝟐
EXAMPLE: Z-TEST n>=30 or sd is known
Example: A certain medication is known to increase the
pulse rate of its users. The standard deviation of the pulse
rate is known to be 5 beats per minute. A sample of 30
users had an average pulse rate of 104 beats per minute.
Find the 99% confidence interval of the true mean.
 CONFIDENCE INTERVALS FOR THE MEAN
WHEN STANDARD DEVIATION IS UNKNOWN
OR n<30
𝒔 𝒔
FORMULA: 𝒔𝒂𝒎𝒑𝒍𝒆 𝒎𝒆𝒂𝒏 − 𝒕 𝜶 < 𝝁 < 𝒔𝒂𝒎𝒑𝒍𝒆 𝒎𝒆𝒂𝒏 + 𝒕 𝜶
𝟐 𝒏 𝟐 𝒏

df= degrees of freedom = n – 1

Table of t-distribution
EXAMPLE: t-TEST n<30 or sd is unknown
Example: The average hemoglobin reading for a
sample of 20 Statistics teachers in JRMSU was 16
grams per 100 milliliters, with a sample standard
deviation of 2 grams. Find the 95% confidence
interval of the true mean.
 Quiz (Confidence Interval
1. The dean of CBA wishes to estimate the average age of students
presently enrolled. From past studies, the standard deviation is
known to be 2 years. A sample of 50 students are selected, and the
mean is found to be 19.2 years. a) Find the 99% confidence interval
of the population mean. b) Find the 95% confidence interval of the
true mean. Interpret the result.

2. For a group of 10 men subjected to a stress situation,

the mean number of heartbeats per minute was 126, and
the standard deviation was 4. a.)Find the 95% confidence
interval of the true mean. b.) Find the 99% confidence
interval of the true mean. Interpret the result.