Statistical intervals.

Chapter 8
INEN 5320 Statistical Decision Making
Dr. Alberto Marquez
Lamar University
amarquez@my.lamar.edu
Industrial Engineering Department
Statistical intervals
Sampling variability, point estimators
are not certain
An estimator for the population
parameter is called a confidence
interval
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?

Is =
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Statistical Intervals
Confidence interval on the mean of a
Normal Dist., variance known
Confidence interval on the mean of a
Normal Dist, variance unknown
Confidence interval on the variance
and standard deviation of a normal
population
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Statistical Intervals
Large-Sample confidence interval for
a population proportion
Prediction interval for a future
observation
Tolerance intervals for a normal
distribution
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Confidence interval on the mean of
a ND, variance known
n
x
Z
o

=
n z x n z x o o
o o 2 2
+ s s
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Confidence interval on the mean of
a ND, variance known
Interpretation
Confidence vs. precision
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Choice of sample size
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2
2 /
2
2 /
|
.
|

\
|
=
|
|
.
|

\
|
=
E
z
p x
Z
n
o o
o o
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Large sample confidence interval
for
40
2 2
>
+ s s
n
n s z x n s z x
o o

X doesnt need to be normally
distributed
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Confidence interval on the mean of
a ND, variance unknown
n s t x n s t x
n n 1 , 2 1 , 2
+ s s
o o

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Chi square distribution
2
2
2
) 1 (
o
S n
X

=
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Percentages of X
2
distribution
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Confidence interval on the variance and
standard deviation of a normal population
2
1 , 2 1
2
2
2
1 , 2
2
) 1 ( ) 1 (

s s

n n
s n s n
o o
_
o
_
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Large sample confidence interval
for a population proportion
n
p p
p P
p np
np X
Z
) 1 (

) 1 (

=
n
p p
z p p
n
p p
z p
) 1 ( ) 1 (
2 2

+ s s

o o
) 1 (
2
2
p p
E
Z
n
|
|
.
|

\
|
=
o
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Prediction interval for a future
observation
n
s t x X
n
s t x
n n n
1
1
1
1
1 , 2 1 1 , 2
+ + s s +
+ o o
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Tolerance intervals for a normal
distribution
What interval will contain p percent of
the population measurements?
( )
2
1 ,
2
2 / ) 1 (
1
1 1

|
.
|

\
|
+
=
+
N
p
Z
N
N
k
ks x ks x

_
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