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Lab 5

The document discusses confidence intervals and levels. It defines confidence intervals as intervals around a sample mean that have a specific probability of containing the true population mean. It provides examples of calculating 95% and 99% confidence intervals and explains that higher confidence levels result in wider intervals. The document also distinguishes between standard error and margin of error and provides examples of confidence interval questions and calculations.

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Ankur Sahu
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0% found this document useful (0 votes)
115 views6 pages

Lab 5

The document discusses confidence intervals and levels. It defines confidence intervals as intervals around a sample mean that have a specific probability of containing the true population mean. It provides examples of calculating 95% and 99% confidence intervals and explains that higher confidence levels result in wider intervals. The document also distinguishes between standard error and margin of error and provides examples of confidence interval questions and calculations.

Uploaded by

Ankur Sahu
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
Download as pdf or txt
Download as pdf or txt
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Topic: Foundations of Statistics and Probability for Data Science

Sub-Topics: Confidence Level and Confidence Interval

LEARNING OBJECTIVES :

1. Confidence Levels and Confidence Intervals

1.1. Be able to explain Confidence level and Confidence Intervals in


statistics.

1.2. Be able to define Confidence interval by using standard error

1.3. Be able to explain basic standard confidence intervals (90%, 95% and
99%)

1.4. Be able to explain the difference between Standard Error and Margin
of Error and its application in real world problems

1.5. Be able to calculate the confidence intervals on the basis of Sample


statistic and margin of error

1.6. Be able to explain the Calculation of Confidence Intervals in various


distributions

Name of Presenter: Pavan Kumar S Page 1 of 6


Date of Presentation: 10/08/2021
Topic: Foundations of Statistics and Probability for Data Science
Sub-Topics: Confidence Level and Confidence Interval

QUESTION 1 :

A random sample of 100 items is taken, producing a sample mean of 49. The
population SD is 4.49. Construct a 95% confidence interval to estimate the
population mean. Interpret this interval.

Confidence Interval: Interval around sample mean which signifies that it contains the true
population mean for a specific confidence level.

C.I = ( μ - za* SE, μ + za * SE )

[ Image Source http://www.stat.yale.edu/Courses/1997-98/101/confint.htm ]

N = 100

Sample Mean, 𝑥 = 49

Population SD, σ = 4.49

Name of Presenter: Pavan Kumar S Page 2 of 6


Date of Presentation: 10/08/2021
Topic: Foundations of Statistics and Probability for Data Science
Sub-Topics: Confidence Level and Confidence Interval

95% confidence interval, z = ± 1.959964

𝜎
𝐶. 𝐼. = 𝑥 ± 𝑧 ∗
√𝑛

4.49 4.49
𝐶. 𝐼. = (49 − 1.96 ∗ , 49 + 1.96 ∗ ) = (48.2,49.7)
√100 √100

Therefore, if we repeatedly draw several samples with sample size n=100, there is
0.95 probability (95%) that the C.I. (48.2, 49.7) will contain the true value of the
population mean.

QUESTION 2 :

A random sample of 35 items is taken, producing a sample mean of 2.364 with a


sample variance of 0.81. Assume x is normally distributed and construct a 95%
confidence interval for the population mean. Also, compute the 99% CI and
compare both these intervals? What is your observation?

N = 35

Sample Mean = 2.364

Sample Variance = 0.81

𝜎
𝐶. 𝐼. = 𝑥 ± 𝑧 ∗
√𝑛

95% confidence interval, z = ± 1.959964

0.9 0.9
𝐶. 𝐼.𝛼=0.05 = (2.364 − 1.96 ∗ , 2.364 + 1.96 ∗ ) = (2.06,2.66)
√35 √35

Name of Presenter: Pavan Kumar S Page 3 of 6


Date of Presentation: 10/08/2021
Topic: Foundations of Statistics and Probability for Data Science
Sub-Topics: Confidence Level and Confidence Interval

0.9
99% confidence interval, z = ± 2.575829𝐶. 𝐼.𝛼=0.01 = (2.364 − 2.58 ∗ , 2.364 + 2.58 ∗
√35
0.9
) = (1.97,2.75)
√35

As confidence increases the width of the CI also increases.

QUESTION 3 :

An airline transports over 10,000 passengers daily, and the airline is curious what
proportion of their passengers use mobile boarding passes instead of paper passes.
They take an Simple Random Sampling (SRS) of 80 passengers and find that 60 of
them use mobile boarding passes. Based on this sample, construct a 95%
confidence interval for the proportion of passengers who use mobile boarding
passes?

Considering the airline wants passengers to use a mobile boarding pass instead of
paper. There were 60 successes and 20 failures.

p = 60 / 80 = 0.75

Name of Presenter: Pavan Kumar S Page 4 of 6


Date of Presentation: 10/08/2021
Topic: Foundations of Statistics and Probability for Data Science
Sub-Topics: Confidence Level and Confidence Interval

q = 1 - p = 0.25

0.75(1−0.75)
𝐶. 𝐼.𝛼=0.05 = (0.75 ± 1.96 ∗ √ ) = (0.655,0.845)
80

CI for the proportion of mobile pass users is (0.655 * 10000, 0.845*10000) = (6550,
8450)

qnorm(0.025, 0.75, sqrt(0.75*25)/80))

QUESTION 4 :

The average zinc concentration recovered from a sample of zinc measurements in


36 different locations is found to be 2.6 grams per milliliter. Find the 95% and 99%
confidence intervals for the mean zinc concentration in the river. Assume that the
population standard deviation is 0.3. Does the increase in the confidence level
increase the confidence interval?

The point estimate x̅ = 2.6

95% confidence interval, z = -1.96 to +1.96;

99% confidence interval, z = -2.57 to +2.57;

C.I (95%) = 2.6 ± 1.96*0.3 / √36 C.I = (2.50, 2.69)

C.I (99%) = 2.6 ± 2.57*0.3 / √36 C.I = (2.47, 2.72)

Name of Presenter: Pavan Kumar S Page 5 of 6


Date of Presentation: 10/08/2021
Topic: Foundations of Statistics and Probability for Data Science
Sub-Topics: Confidence Level and Confidence Interval

QUESTION 5:
In an exit poll survey, a random sample of 1000 people were asked to predict which
party would come to power in the elections (they vote). 48% of the sample said
Party A. Compute the margin of error at 95% Confidence level. If I want to have the
margin of error to be at 0.5% (at the same 95% C L), what should be the sample size
for the survey (z-value =1.96)

0.48∗0.52
Margin of Error = ZCL* SE = 1.96* √ => 1.96 * 0.016 = 0.03 ~ 3%
1000

0.48∗0.52
0.01= 1.96*√ => n= (1.96*1.96*.48*.52)/0.0001 = 9588.6 ~ 9589.
𝑛

The survey sample should have a size of 9589 people

Name of Presenter: Pavan Kumar S Page 6 of 6


Date of Presentation: 10/08/2021

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