Sampling Distributions & Confidence Intervals for Proportions: Rules & Calculations - Prof, Study notes of Business Statistics

The concept of sampling distributions and confidence intervals for proportions in statistical sampling. It covers the meaning of sample proportion, population proportion, mean, standard deviation, and sampling distribution. The document also discusses the rules for sample proportion, the calculation of confidence intervals, and the assumptions and conditions required for their application. It includes examples and critical values for different confidence levels.

Typology: Study notes

2013/2014

Uploaded on 12/17/2014

koofers-user-2gd
koofers-user-2gd 🇺🇸

5

(1)

10 documents

1 / 2

Toggle sidebar

This page cannot be seen from the preview

Don't miss anything!

bg1
Jessica Wang
Chapter 9: Sampling Distributions and Confidence Intervals for
Proportions
Statistics:
o
¯
x
, mean of sample
os, standard deviation of the sample
o
^p
, sample proportion
Parameters:
oµ, mean of population
oσ, standard deviation of population
op, population proportion
Sampling distribution: distribution of the statistic obtained from repeated
samples (or repeated trials of an experiment) using the same number of
observations
oChanges with parameter
Sample proportions: The proportion of “successes” can be more informative
than the count. In statistical sampling the sample proportion of successes is used
to estimate the proportion p of successes in a population.
oFor any SRS of size n, the sample proportion of successes is:
^p=count of successes in the sample
n=X
n
oRules for Sample Proportion:
A population with a fixed proportion p
Random Sample (independent, equal chance)
Sample size is large, np > 9 and n(1-p) > 9
oIf the sample size is much smaller than the size of a population with
proportion p of successes, then the mean and standard deviation of
^p
are:
μ
^p
=p σ
^p
=
p(1p)
n
oBecause the mean is , we say that the sample proportion in an SRS is an
unbiased estimator of the population proportion p
oThe variability decreases as the sample size increases. So larger samples
usually give closer estimates of the population proportion p
Confidence Interval of a Sample Proportion
oStatement: Ex - We are 95% confident that between 24%-2*1.9% and
24%+2*1.9% of people in Washington agree with the recent changes to
bankruptcy laws. < The proportion of the population
o95% confidence 95% of samples of this size will produce confidence
intervals that capture the true proportion of the population (and we
expect 5% of our samples to produce intervals that fail to capture the true
proportion)
pf2

Partial preview of the text

Download Sampling Distributions & Confidence Intervals for Proportions: Rules & Calculations - Prof and more Study notes Business Statistics in PDF only on Docsity!

Jessica Wang

Chapter 9: Sampling Distributions and Confidence Intervals for

Proportions

 Statistics: o ¯ x^ , mean of sample o s, standard deviation of the sample

o ^ p^ , sample proportion

 Parameters: o μ, mean of population o σ, standard deviation of population o p, population proportion  Sampling distribution : distribution of the statistic obtained from repeated samples (or repeated trials of an experiment) using the same number of observations o Changes with parameter  Sample proportions: The proportion of “successes” can be more informative than the count. In statistical sampling the sample proportion of successes is used to estimate the proportion p of successes in a population. o For any SRS of size n, the sample proportion of successes is:

^ p =

count of successes in the sample

n

X

n

o Rules for Sample Proportion:  A population with a fixed proportion p  Random Sample (independent, equal chance)  Sample size is large, np > 9 and n(1-p) > 9 o If the sample size is much smaller than the size of a population with

proportion p of successes, then the mean and standard deviation of ^ p

are:

μ ^ p = p  σ ^ p =

p ( 1 − p )

n

o Because the mean is , we say that the sample proportion in an SRS is an unbiased estimator of the population proportion p o The variability decreases as the sample size increases. So larger samples usually give closer estimates of the population proportion p Confidence Interval of a Sample Proportion o Statement: Ex - We are 95% confident that between 24%-21.9% and 24%+21.9% of people in Washington agree with the recent changes to bankruptcy laws. < The proportion of the population o 95% confidence  95% of samples of this size will produce confidence intervals that capture the true proportion of the population (and we expect 5% of our samples to produce intervals that fail to capture the true proportion)

Jessica Wang

o Margin of error: ^ p ±^2 SE (^ ^ p ).^ Or half of the width of the CI, which is

the estimate +/- the ME.  Assumptions and Conditions o Independence Assumption: Are sample observations independent of each other? o Randomization Condition: Was the sample randomly generated? o 10% Condition: If sampling is done without replacement, then the sample size, n , must be no larger than 10% of the population. o Success/Failure Condition: The sample size must be large enough so that both np and n(1-p) are at least 10.  Sample size for a desired margin of error: p  ~  N ( p , (^) √ p ( 1 − p )/ n )  ⇒  n =¿ ¿ o When p is unknown, use p =.  Critical Values o C Level 90, Z* = 1. o C Level 95, Z* = 1. o C Level 98, Z* = 20. o C Level 99, Z* = 2. o C Level 99.9, Z* = 3.