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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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