What is a confidence interval?

• It is?impossible?to find the?exact value?of a population parameter when taking a sample
• The best we can do is find an?interval?for which the exact value is likely to lie within
  • This is called a?confidence interval
• The?confidence level?of a confidence interval is the?probability?that the?interval contains?the?population parameter
  • Be careful with wording – the population parameter is a fixed value so it does not make sense to talk about the probability that it lies within an interval
    • Instead we talk about the probability an interval contains the parameter
  • Suppose samples were collected and a 95% confidence interval for a population parameter was constructed for each sample, then for every 100 intervals we would?expect on average 95?of them to contain the parameter
    • 95 out of 100 is?not guaranteed?– it is possible all of them could contain the parameter
    • It is possible (though?very?unlikely) that none of them contains the parameter

What affects the width of a confidence interval?

• The?width?of a confidence interval is the?range of the values?in the interval
• The?confidence level?affects the width
  • Increasing the confidence level will increase the width
  • Decreasing the confidence level will decrease the width
• The?size of the sample?affects the width
  • Increasing the sample size will decrease the width
  • Decreasing the sample size will increase the width

How do I calculate a confidence interval for the population mean (μ)?

• For this course we only construct?symmetrical confidence intervals?for the mean of a population when:
  • The?variance of the population?is?known
  • The population follows a?normal distribution
  • The population does not follow a normal distribution but the?sample size is big?enough to use the?Central Limit Theorem
• The confidence interval can be found using the?formula

How do I find the z-value for a confidence interval?

• The z-values for common confidence levels are:
  • • z-values for most confidence intervals you will need to work with will be given in the table of critical values

How can I interpret a confidence interval?

• After you have calculated a confidence interval for?μ?you might be expected to comment on the possibility of?μ?being a specific value
• If the value which is claimed to be?μ?is?within?the confidence interval then there is?evidence?to?support the claim
• If the value is?outside?the interval then there is?not enough evidence?to support the claim

How do I calculate a confidence interval for the proportion (p) of a population?

• If we want to find estimate the?proportion of a population?that fulfil a certain criteria we can construct a?confidence interval?based on the proportion of a sample who fulfil that criteria
  • The proportion is between 0 and 1
• For this course we only construct?symmetrical confidence intervals?for the proportion of a population provided that the?sample size is large?enough to use the?Central Limit Theorem
• The confidence interval can be found using the formula

• Note that the sample proportion is the midpoint of the confidence interval but it?also affects?the width

How can I interpret a confidence interval?

• Interpreting a confidence interval for p works in the same way as a confidence interval for?μ
• The only additional part is that you might get asked to see whether an experiment is fair
  • Find the probability of the outcome as though it were fair
    • For example – a fair coin will have a 0.5 chance of landing on each side
  • Use a sample to calculate a confidence interval
  • See if the probability is in the confidence interval
    • If it is not then there is sufficient evidence to suggest that the experiment is not fair