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Chapter 13: Confidence Intervals: Making Your Best Guesstimate

                                                      3.  Multiply 1.96 times 2.3 divided by the square root of 100 (which is 10). The
                                                        margin of error is, therefore, ± 1.96 ∗ (2.3 ÷ 10) = 1.96 ∗ 0.23 = 0.45 inches.
                                                      4.  Your 95% confidence interval for the mean length of walleye fingerlings

                                                        in this fish hatchery pond is 7.5 inches ± 0.45 inches. (The lower end of
                                                        the interval is 7.5 – 0.45 = 7.05 inches; the upper end is 7.5 + 0.45 = 7.95
                                                        inches.)
                                                   After you calculate a confidence interval, make sure you always interpret it in   203
                                                    words a non-statistician would understand. That is, talk about the results in
                                                    terms of what the person in the problem is trying to find out — statisticians
                                                    call this interpreting the results “in the context of the problem.” In this exam-
                                                    ple you can say: “With 95% confidence, the average length of walleye finger-
                                                    lings in this entire fish hatchery pond is between 7.05 and 7.95 inches, based
                                                    on my sample data.” (Always be sure to include appropriate units.)
                                                    Case 2: Population standard deviation
                                                    is unknown and/or n is small
                                                    In many situations, you don’t know  , so you estimate it with the sample stan-
                                                    dard deviation, s; and/or the sample size is small (less than 30), and you can’t
                                                    be sure your data came from a normal distribution. (In the latter case, the
                                                    Central Limit Theorem can’t be used; see Chapter 11.) In either situation, you
                                                    can’t use a z*-value from the standard normal (Z-) distribution as your critical
                                                    value anymore; you have to use a larger critical value than that, because of
                                                    not knowing what   is and/or having less data.

                                                    The formula for a confidence interval for one population mean in Case 2
                                                    is        , where t*   is the critical t*-value from the t-distribution
                                                                       n – 1
                                                    with n – 1 degrees of freedom (where n is the sample size). The t*-values for
                                                    common confidence levels are found using the last row of the t-table (in the
                                                    appendix). Chapter 10 gives you the full details on the  t-distribution and how
                                                    to use the t-table.

                                                   The t-distribution has a similar shape to the Z-distribution except it’s flatter
                                                    and more spread out. For small values of n and a specific confidence level,
                                                    the critical values on the t-distribution are larger than on the Z-distribution,
                                                    so when you use the critical values from the t-distribution, the margin of error
                                                    for your confidence interval will be wider. As the values of n get larger, the
                                                    t*-values are closer to z*-values. (Chapter 10 gives you the full details on the
                                                    t-distribution and its relationships to the Z-distribution.)














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                             20_9780470911082-ch13.indd   203                                                              3/25/11   8:14 PM
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