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Chapter 8 Confidence Intervals McGraw-Hill/Irwin Copyright © 2014 by The McGraw-Hill Companies, . s . Confidence Intervals 1. z-Based Confidence Intervals for a Population Mean: σ Known 2. t-Based Confidence Intervals for a Population Mean: σ Unknown 3. Sample Size Determination 4. Confidence Intervals for a Population Proportion 5. Confidence Intervals for Parameters of Finite Populations (Optional) 8-2 LO8-1: Calculate and interpret a z-based confidence interval for a 8.1 z-Based Confidence Intervals for a population mean when σ is known. Mean: σ Known  Confidence interval for a population mean is an interval constructed around the sample mean so we are reasonable sure that it contains the population mean  Any confidence interval is based on a confidence level 8-3 LO8-1 The Car age Case  Automaker conducted age tests on n=50 cars  Sample mean is 31.56 ◦ This is a point estimate of the population mean  Do not know how good this estimate is  Will use a confidence interval 8-4 LO8-1 The Car age Case #2  There were many samples of 50 cars ◦ Each would give different means  Consider the probability distribution of all the sample means ◦ Called the sampling distribution

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