Stats
Chapter 7
Student Lecture Notes
7-1
Business Statistics: A Decision-Making Approach
6th Edition
Chapter 7 Estimating Population Values
Fundamentals of Business Statistics – Murali Shanker
Chap 7-1
Confidence Intervals
Content of this chapter Confidence Intervals for the Population Mean, μ when Population Standard Deviation σ is Known when Population Standard Deviation σ is Unknown
Determining the Required Sample Size
Fundamentals of Business Statistics – Murali Shanker
Chap 7-2
Fundamentals of Business Statistics – Murali Shanker
Chapter 7
Student Lecture Notes
7-2
Confidence Interval Estimation for μ
Suppose you are interested in estimating the average amount of money a Kent State Student (population) carries. How would you find out?
Fundamentals of Business Statistics – Murali Shanker
Chap 7-3
Point and Interval Estimates
A point estimate is a single number, a confidence interval provides additional information about variability
Lower Confidence Limit
Point Estimate Width of confidence interval
Upper Confidence Limit
Fundamentals of Business Statistics – Murali Shanker
Chap 7-4
Fundamentals of Business Statistics – Murali Shanker
Chapter 7
Student Lecture Notes
7-3
Estimation Methods
Point Estimation
Provides single value Based on observations from 1 sample Gives no information on how close value is to the population parameter
Interval Estimation
Provides range of values Based on observations from 1 sample Gives information about closeness to unknown population parameter Stated in terms of “level of confidence.” To determine exactly requires what information?
Fundamentals of Business Statistics – Murali Shanker
Chap 7-5
Estimation Process
Random Sample Population
(mean, μ, is unknown) Sample Mean x = 50 I am 95% confident that μ is between 40 & 60.
Fundamentals of Business Statistics – Murali Shanker
Chap 7-6
Fundamentals of Business Statistics –
Student Lecture Notes
7-1
Business Statistics: A Decision-Making Approach
6th Edition
Chapter 7 Estimating Population Values
Fundamentals of Business Statistics – Murali Shanker
Chap 7-1
Confidence Intervals
Content of this chapter Confidence Intervals for the Population Mean, μ when Population Standard Deviation σ is Known when Population Standard Deviation σ is Unknown
Determining the Required Sample Size
Fundamentals of Business Statistics – Murali Shanker
Chap 7-2
Fundamentals of Business Statistics – Murali Shanker
Chapter 7
Student Lecture Notes
7-2
Confidence Interval Estimation for μ
Suppose you are interested in estimating the average amount of money a Kent State Student (population) carries. How would you find out?
Fundamentals of Business Statistics – Murali Shanker
Chap 7-3
Point and Interval Estimates
A point estimate is a single number, a confidence interval provides additional information about variability
Lower Confidence Limit
Point Estimate Width of confidence interval
Upper Confidence Limit
Fundamentals of Business Statistics – Murali Shanker
Chap 7-4
Fundamentals of Business Statistics – Murali Shanker
Chapter 7
Student Lecture Notes
7-3
Estimation Methods
Point Estimation
Provides single value Based on observations from 1 sample Gives no information on how close value is to the population parameter
Interval Estimation
Provides range of values Based on observations from 1 sample Gives information about closeness to unknown population parameter Stated in terms of “level of confidence.” To determine exactly requires what information?
Fundamentals of Business Statistics – Murali Shanker
Chap 7-5
Estimation Process
Random Sample Population
(mean, μ, is unknown) Sample Mean x = 50 I am 95% confident that μ is between 40 & 60.
Fundamentals of Business Statistics – Murali Shanker
Chap 7-6
Fundamentals of Business Statistics –