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Sample: Estimating The Mean

The document discusses estimating the population mean using a sample mean. It states that the sample mean is an unbiased point estimate of the population mean, and its variance decreases as the sample size increases. Therefore, the sample mean provides an accurate estimate of the population mean when the sample size is large. The document then describes how to construct a confidence interval for the population mean when the population variance is known, based on the sampling distribution of the sample mean and the Central Limit Theorem. It provides the formula for a 100(1-α)% confidence interval for the population mean when the population variance is known.

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Karthi Keyan
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65 views2 pages

Sample: Estimating The Mean

The document discusses estimating the population mean using a sample mean. It states that the sample mean is an unbiased point estimate of the population mean, and its variance decreases as the sample size increases. Therefore, the sample mean provides an accurate estimate of the population mean when the sample size is large. The document then describes how to construct a confidence interval for the population mean when the population variance is known, based on the sampling distribution of the sample mean and the Central Limit Theorem. It provides the formula for a 100(1-α)% confidence interval for the population mean when the population variance is known.

Uploaded by

Karthi Keyan
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Sample: Estimating the Mean The sampling distribution of X is centered at , and in most applications the variance is smaller than

that of any other estimators of . Thus, the sample mean x will be used as a point estimate for the population mean . Recall that 2X= 2/n, so a large sample will yield a value of X that comes from a sampling distribution with a small variance. Hence, x is likely to be a very accurate estimate of when n is large. Let us now consider the interval estimate of . If our sample is selected from a normal population or, failing this, if n is sufficiently large, we can establish a confidence interval for by considering the sampling distribution of X . According to the Central Limit Theorem, we can expect the sampling distribution of X to be approximately normally distributed with mean X = and standard deviation X = /n. Writing z/2 for the z-value above which we find an area of /2 under the normal curve, we can see from Figure 9.2 that P(z/2 < Z < z/2) = 1 , where Z =X /n. Hence, P_z/2 <X /n< z/2_= 1 .z1 z/2 0 z/2/2 /2 Figure 9.2: P(z/2 < Z < z/2) = 1 . Multiplying each term in the inequality by /n and then subtracting X from each term and multiplying by 1 (reversing the sense of the inequalities), we obtain P_X z/2n< < X + z/2n_= 1 . A random sample of size n is selected from a population whose variance 2 is known, and the mean x is computed to give the 100(1)% confidence interval below. It is important to emphasize that we have invoked the Central Limit Theorem above. As a result, it is important to note the conditions for applications that follow. Confidence Interval on , 2 Known If x is the mean of a random sample of size n from a population with known variance 2, a 100(1 )% confidence interval for is given by x z/2n< < x + z/2n, where z/2 is the z-value leaving an area of /2 to the right. For small samples selected from nonnormal populations, we cannot expect our degree of confidence to be accurate. However, for samples of size n 30, with the shape of the distributions not too skewed, sampling theory guarantees good results. Clearly, the values of the random variables L and U, defined in Section 9.3, are the confidence limits L = x z/2nand U = x + z/2n. Different samples will yield different values of x and therefore produce different interval estimates of the parameter , as shown in Figure 9.3. The dot at the center of each interval indicates the position of the point estimate x for that random sample. Note that all of these intervals are of the same width, since their widths depend only on the choice of z/2 once x is determined. The larger the

value we choose for z/2, the wider we make all the intervals and the more confident we can be that the particular sample selected will produce an interval that contains the unknown parameter . In general, for a selection of z/2, 100(1 )% of the intervals will cover .

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