Understanding Confidence Intervals: A Simplified Guide to Probabilistic Statistics
This guide offers a clear explanation of confidence intervals in statistics, specifically for normal distributions. A confidence interval is the range of outcome values that we can be confident will contain a specified percentage of results from an experiment. Learn about the 68-95-98% rule, calculating intervals, and using tools like a graphic calculator to determine sample sizes. We explore the importance of reporting confidence intervals accurately and how to interpret them in practical situations, ensuring you grasp this essential statistical concept.
Understanding Confidence Intervals: A Simplified Guide to Probabilistic Statistics
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Presentation Transcript
Probability • CONFIDENCE INTERVALS
what is a confidence interval? • keeping it simple, for any random variable (X) a confidence interval is the range of outcome values (x) that we can be confident will contain a specified percentage of all results from an experiment. let’s look at it in greater detail...
consider a Normal frequency distribution; • the distribution is symmetrical about the population mean μ, the zero-point on the x-axis; • the 68-95-98% populations divisions are central to confidence intervals. Consider the first σ range, from -1σ to +1σ either side of μ. Ideally, we can be confident that 68% of the population lie within 1σ of μ. That is to say, the 68% confidence interval is -1 < μ <+1
-1 α 2 Z this term indicates that the given confidence interval (α%) must be halved, as μ is the midpoint. new notation; this is the value of the inverse normal proportion. traditionally, you would find this value by referring to the Inverse-Norm table, which is still provided in examinations. It is expected that you now have the use of a graphic calculator, and that you know how to use it...
Casio fx9750G Plus • Mode = STATS • F4 (INTR) • F1 (Z) • F1 (1-S) • F2 (var) - IMPORTANT • enter your data, and press EXE. an example...
enter the data • Execute • report the solution
Reporting • It is important to always report a Confidence Interval as the calculated limits bracketing the mean. • the NZQA standard is included in the examination resource sheet: NOTE: The correct interpretation of a confidence interval is that over a long-run experiment, x% of the means will lie within the stated limits.
-1 α 2 Z σ √n e = x Sample Size • The Confidence Interval is analogous to the margin of error, which is the remainder of the sample. • For example, if we are dealing with a 98% CI, then • error = ±2%, ie the “lack of confidence” • In terms of accuracy, • CI ≡ sample is accurate to within α%, • so, where e = degree of accuracy If we know the degree of accuracy e, we can calculate n, the minimum sample size
-1 α 2 -1 α 2 Z σ √n Z x <4 how to calculate sample size • For this, you have to use the inverse norm table. A calculator will not do it for you. For example: • Assume symmetry; μ is mid-point of 68 and 76, ie μ=72, so e=4 • α = 0.96, so α/2 = 0.48, • Gives 2.05 x 6/√n < 4, so square both sides • (2.05 x 6)2/n < 16, so • n = 205.9225/16 = 12.87, rounded = 13 = 2.05
summary points • learn to use the Normal Distribution tables; although most problems can be solve solely with a calculator, sample size calculations require the use of the table. • Always express Confidence Intervals in the correct format;