Statistics Chapter 8: Estimates and Sample Sizes
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Questions and Answers

What is the confidence interval for the mean bank credit card debt based on the given example?

  • $7840 to $7896
  • $7855 to $7881
  • $7835 to $7901
  • $7868 ± $2.48 (correct)
  • What is the z value used for constructing a 99% confidence interval?

  • 2.33
  • 1.96
  • 1.65
  • 2.58 (correct)
  • How is the area in each tail calculated for a 99% confidence level in the z-distribution?

  • 0.005 (correct)
  • 0.005 (correct)
  • 0.01
  • 0.02
  • Which of the following represents the standard deviation of bank credit card debt for all households in 2004?

    <p>2070 (B)</p> Signup and view all the answers

    What is the primary role of the z score denoted by zα/2?

    <p>To separate likely from unlikely sample means (B)</p> Signup and view all the answers

    Under which condition is the sample mean x̄ considered the best point estimate of the population mean μ?

    <p>When the sample is a simple random sample (A)</p> Signup and view all the answers

    What is one of the assumptions required for estimating a population mean when σ is known?

    <p>The population standard deviation σ must be known (D)</p> Signup and view all the answers

    What does the α/2 represent in the context of the z score for a confidence level?

    <p>The probability of falling in the right tail of the distribution (C)</p> Signup and view all the answers

    Which of the following is NOT a condition for the sample mean x̄ when estimating the population mean μ?

    <p>The sample size must be equal to the population size (D)</p> Signup and view all the answers

    What is the degrees of freedom when estimating a population mean with a sample size of 25?

    <p>24 (D)</p> Signup and view all the answers

    In the example with 64 adults, what is the sample standard deviation given?

    <p>$300 (C)</p> Signup and view all the answers

    What is the margin of error in the confidence interval for a mean of $186 with a t-value of 2.064 and a standard error of 2.40?

    <p>$4.95 (D)</p> Signup and view all the answers

    Which t-value corresponds to a confidence level of 99% with 63 degrees of freedom?

    <p>2.66 (C)</p> Signup and view all the answers

    What is the 95% confidence interval for the mean cholesterol level if the point estimate is 186 and the margin of error is 4.95?

    <p>181.05 to 190.95 (A)</p> Signup and view all the answers

    What is the formula used to calculate the confidence interval for the population mean when the population standard deviation is not known?

    <p>x̄ ± tα/2 (s/√n) (B)</p> Signup and view all the answers

    For a sample size greater than 30 and unknown population standard deviation, which distribution is appropriate for constructing confidence intervals?

    <p>T distribution (D)</p> Signup and view all the answers

    If the area in one tail of a t distribution for a confidence level of 95% is 0.025, what is the area in two tails?

    <p>0.05 (C)</p> Signup and view all the answers

    What is the correct interpretation of the confidence interval $7689.98$ to $8046.02$?

    <p>The margin of error is $178.02$. (A), There is a 95% probability that the population mean falls within this interval. (B)</p> Signup and view all the answers

    To calculate the sample size needed for estimating the population mean with a known standard deviation, which formula should be applied?

    <p>n = $ rac{h z_{ rac{α}{2}} σ^2}{E^2}$ (D)</p> Signup and view all the answers

    In the example of estimating the mean IQ score, what is the value of $z_{ rac{α}{2}}$ used?

    <p>1.96 (D)</p> Signup and view all the answers

    If the population standard deviation is not known, which case applies for constructing a confidence interval?

    <p>Specific conditions of the sample must be met. (B)</p> Signup and view all the answers

    In estimating sample size for a population mean, what does the symbol $E$ represent?

    <p>The margin of error (A)</p> Signup and view all the answers

    Which statement is true regarding the sample of 97 statistics students in the example?

    <p>It provides a 95% confidence that the sample mean lies within 3 IQ points from the population mean. (B)</p> Signup and view all the answers

    What is the calculated value of the margin of error in the sample mean estimation example?

    <p>$178.02$ (A)</p> Signup and view all the answers

    For a sample mean estimation with known standard deviation, what does the notation $ar{x} ext{±} E$ signify?

    <p>The sample mean is the midpoint of the confidence interval. (B), The sample mean ranges from $ar{x} - E$ to $ar{x} + E$. (D)</p> Signup and view all the answers

    What is the point estimate of the mean price for all college textbooks based on the sample provided?

    <p>$90.50 (C)</p> Signup and view all the answers

    How is the margin of error (E) calculated for constructing a confidence interval when the population standard deviation is known?

    <p>E = zα/2 * (σ / √n) (C)</p> Signup and view all the answers

    What z-value corresponds to a 90% confidence level in a normal distribution?

    <p>1.65 (A)</p> Signup and view all the answers

    What is the significance of the value α in the context of confidence intervals?

    <p>It denotes the probability of making a Type I error. (D)</p> Signup and view all the answers

    What is the correct confidence interval for the mean price of college textbooks given the sample mean of $90.50, standard deviation of $7.50, and a sample size of 25?

    <p>($87.95, $92.05) (A)</p> Signup and view all the answers

    If the population standard deviation increases, what effect does it have on the margin of error (E) for a given confidence level?

    <p>E increases. (C)</p> Signup and view all the answers

    What assumption is made about the population when estimating the mean price of college textbooks?

    <p>The population is normal. (A)</p> Signup and view all the answers

    In the provided example, what is the role of the z value in constructing the confidence interval?

    <p>To represent the critical value associated with the confidence level. (C)</p> Signup and view all the answers

    Which condition allows the use of the t distribution for making a confidence interval when the population standard deviation is not known?

    <p>Sample size is large and population standard deviation is not known (B)</p> Signup and view all the answers

    What is the shape of the t distribution compared to the standard normal distribution?

    <p>T distribution is shorter and wider than standard normal distribution (D)</p> Signup and view all the answers

    What method should be used if the sample size is small and the population is not normally distributed?

    <p>Nonparametric method (D)</p> Signup and view all the answers

    The degrees of freedom (df) for the t distribution is calculated as:

    <p>n - 1 (A)</p> Signup and view all the answers

    Which statement about the sample mean is true?

    <p>The sample mean is the best point estimate of the population mean (B)</p> Signup and view all the answers

    When should the t distribution be used with a sample size less than 30?

    <p>If the population is normally distributed (D)</p> Signup and view all the answers

    Which of the following statements about estimating a population mean is correct when σ is not known?

    <p>Use the t distribution for small samples or large samples if σ is unknown (C)</p> Signup and view all the answers

    What is a defining property of the t distribution as the sample size increases?

    <p>It becomes identical to the standard normal distribution (A)</p> Signup and view all the answers

    Flashcards

    Critical Value (zα/2)

    The value of the z-score that separates the right-tail area of α/2 in the standard normal distribution.

    Point Estimate of Population Mean

    The best point estimate of the population mean (µ) is the sample mean (x̄).

    Estimating Population Mean (σ Known)

    To estimate the population mean (µ) when the population standard deviation (σ) is known, we need a sample mean (x̄) and a margin of error (E).

    Margin of Error (E)

    The margin of error (E) in estimating the population mean (µ) is the maximum likely difference between the sample mean (x̄) and the population mean (µ).

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    Assumptions for Estimating Population Mean (σ Known)

    Assumptions for estimating the population mean when the population standard deviation (σ) is known include a simple random sample, known σ, and either a normal population distribution or a sample size (n) greater than 30.

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    Confidence Interval for Population Mean (σ known)

    A range of values within which the true population mean is likely to fall, based on a sample mean and the standard deviation of the population.

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    Sample Mean (x̄) vs. Population Mean (µ)

    The sample mean (x̄) is the best estimate of the population mean (µ). The confidence interval is a range around x̄ that represents our estimated range for µ.

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    Standard Deviation (σ)

    The standard deviation of the population (σ) is a measure of how spread out the data is. It is used along with the sample mean (x̄) and the confidence level to determine the margin of error for the confidence interval.

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    Confidence Level

    The confidence level determines the percentage of confidence that the true population mean falls within the confidence interval. For a 99% confidence level, we are 99% confident that the true mean lies within the calculated range.

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    Point Estimate

    A numerical value that represents the best guess for the unknown population parameter. It's taken from the sample data.

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    Confidence Interval

    A range of values that is likely to contain the true population parameter with a certain level of confidence.

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    Population Standard Deviation (σ)

    The standard deviation of the population, which is assumed to be known in this context.

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    Sample Size (n)

    The sample size, which is the number of observations in the sample.

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    Z-value (zα/2)

    The critical value from the standard normal distribution corresponding to the desired confidence level.

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    Confidence Interval Formula

    The formula used to calculate the confidence interval for the population mean when the population standard deviation is known.

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    Population Mean (µ)

    The population mean (µ) is the average value of a variable for the entire population.

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    Sample Mean (x̄)

    The sample mean (x̄) is the average value of a variable calculated from a sample of data.

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    Z-score (zα/2)

    The z-score (zα/2) is a value from the standard normal distribution that corresponds to a specific confidence level.

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    Sample Size Formula

    The formula for calculating the sample size (n) for a known population standard deviation (σ)

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    What is the t-distribution?

    The t-distribution is a bell-shaped distribution used for estimating population means when the population standard deviation is unknown. It is wider and shorter than the standard normal distribution.

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    What is a degree of freedom (df) in the context of the t-distribution?

    The t-distribution has only one parameter: degrees of freedom (df). This value represents the number of independent pieces of information in the sample, calculated as df = n - 1.

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    How does the t-distribution relate to the standard normal distribution as sample size increases?

    The t-distribution approaches the standard normal distribution as the sample size (n) increases. This means the t-distribution becomes more similar to the standard normal distribution.

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    What is the point estimate of the population mean when the population standard deviation is unknown?

    The sample mean (x̄) is the best single value estimate for the population mean (µ) when the population standard deviation (σ) is unknown.

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    When is the t-distribution used for estimating a population mean with an unknown population standard deviation?

    When estimating a population mean with an unknown population standard deviation, a t-distribution is used for confidence intervals if the sample size is greater than or equal to 30.

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    When is the t-distribution used for estimating a population mean with an unknown population standard deviation and a small sample?

    When estimating a population mean with an unknown population standard deviation, a t-distribution is used for confidence intervals if the sample size is less than 30 and the population is normally distributed.

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    What is the procedure for estimating a population mean when the population standard deviation is unknown, the sample size is small, and the population is not normally distributed?

    If the population is not normally distributed (or its distribution is unknown), and the population standard deviation is unknown, then a nonparametric method is used to create the confidence interval for the population mean.

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    Why is the t-distribution important in statistical analysis?

    The t-distribution is essential for many statistical hypothesis tests, particularly when dealing with small sample sizes and unknown population standard deviations. It plays a significant role in determining if there is a statistically significant difference between two groups or between a sample and a known population.

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    Degrees of Freedom (df) in t-distribution

    The degrees of freedom (df) for a t-distribution are calculated by subtracting 1 from the sample size (n). It indicates the number of independent pieces of information used to estimate the population parameter.

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    Confidence Interval for µ (t-distribution)

    A confidence interval for the population mean (µ) using the t-distribution provides a range of values within which we are confident the true population mean lies. It is calculated using the sample mean (x̄), the t-critical value, the sample standard deviation (s), and the sample size (n).

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    What is the t-critical value?

    The t-critical value, denoted as tα/2, is a value from the t-distribution that corresponds to the desired level of confidence and degrees of freedom. It separates the rejection region from the non-rejection region in a hypothesis test.

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    Margin of Error (E) in t-distribution

    The margin of error (E) for a confidence interval of µ using the t-distribution is the maximum likely difference between the sample mean (x̄) and the true population mean (µ). It is calculated by multiplying the t-critical value by the standard error of the mean.

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    Standard Error of the Mean (SEM) in t-distribution

    The standard error of the mean (SEM) for a t-distribution is an estimate of the standard deviation of the sampling distribution of the sample mean. It measures the variability of sample means around the population mean.

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    Formula for Confidence Interval (µ)

    The formula for calculating the confidence interval for the population mean (µ) using the t-distribution is: x̄ ± tα/2 * (s/√n). This provides a range within which the true population mean is likely to fall with a certain degree of confidence.

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    Using the t-distribution table

    The t-distribution table is used to find the critical value (tα/2) associated with a specific confidence level and degrees of freedom. The table provides t-scores for different tail probabilities and degrees of freedom, allowing you to find the appropriate t-critical value for your confidence interval.

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    Study Notes

    Chapter 8: Estimates and Sample Sizes

    • This chapter covers estimating population proportions and means, including situations where the population standard deviation is known or unknown.
    • Different methods are used for estimating means and proportions, depending on the context of the known or unknown parameters.

    Estimate a Population Mean

    • Point Estimate: The value of a sample statistic used to estimate a population parameter.
    • Two Types of Estimations: Point estimation and confidence interval estimation.

    Confidence Interval (CI)

    • A range of values used to estimate the true value of a population parameter.
    • Often abbreviated as CI.
    • Represents the probability (1-α) that the interval contains the true population parameter, assuming repeated estimations.
    • Confidence level is also called degree of confidence or confidence coefficient.
    • Common confidence levels are 90%, 95%, or 99%. (α = 10%, 5%, or 1%).

    Critical Values

    • Z-scores used to distinguish between likely and unlikely sample statistics.
    • Critical values depend on the following observations:
      • Under certain conditions, the sampling distribution of sample means can be approximated by a normal distribution.
      • A z-score associated with a sample mean has a probability of α/2 of falling in the right tail.
      • The z-score separating the right-tail region is denoted by Za/2 and is a critical value, differentiating between likely and unlikely sample means.

    Estimating a Population Mean: σ Known

    • Notation:
      • μ = population mean
      • σ = population standard deviation
      • X̄ = sample mean
      • E = margin of error
      • Za/2 = z-score separating an area of α/2 in the right tail of the standard normal distribution
    • Assumptions:
      • Simple random sample (equal chance for each sample)
      • Population standard deviation (σ) is known.
      • Either population is normally distributed or n ≥ 30.
    • Confidence Interval Formula: 𝑋̅ − 𝐸 ≤ μ ≤ 𝑋̅ + 𝐸 where 𝐸 = Zα/2 * (σ/√n)

    Example: Estimating Mean Textbook Price

    • A publishing company wants to estimate the average price of a new textbook.
    • The sample mean, standard deviation, and sample size are provided. (Values not included in the provided text)
    • Methods are shown to calculate a point estimate and a 90% confidence interval for the mean textbook price.

    Estimating a Population Mean: σ Not Known

    • Cases: There are 3 possible cases to consider:

      • Case I: Population standard deviation (σ) is unknown. Sample size is small (n < 30). Sample comes from normally distributed population. Use the t-distribution to estimate the confidence interval..
      • Case II: Population standard deviation (σ) is unknown, and the sample size is large (n ≥ 30). Use the t-distribution.
      • Case III: Population standard deviation (σ) is unknown, sample size is small (n < 30), and sample does not come from a normally distributed population. Use nonparametric methods.
    • t-distribution: A specific type of bell-shaped distribution with lower height and wider spread compared to the standard normal distribution.

      • Its shape approaches the normal distribution as sample size increases.
      • It's characterized by degrees of freedom (df = n − 1)
    • Notation (t-distribution):

      • μ = population mean
      • σ = population standard deviation
      • X̄ = sample mean
      • n = number of sample values
      • E = margin of error
      • ta/2 = critical t value separating an area of α/2 in the right tail of the t distribution.
    • Confidence Interval Formula (σ unknown): 𝑋̅ − 𝐸 ≤ μ ≤ 𝑋̅ + 𝐸 where 𝐸 = tα/2 * (s/√n)

    • Example (Cholesterol Levels): Estimating the mean cholesterol level of adult men in a city. A sample size, sample mean and standard deviation was provided, and a 95% confidence interval was calculated.

    • Choosing the correct distribution: A flow chart guides the appropriate distribution selection to estimate population mean when the population standard deviation is unknown, considering the sample size and distribution characteristics.

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    Explore the concepts of estimating population proportions and means in this quiz based on Chapter 8. Understand the difference between point estimation and confidence interval estimation, along with critical values and confidence levels. Perfect for students looking to master these fundamental statistical concepts.

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