BUSS1020 Lecture Notes - Lecture 8: Central Limit Theorem, Standard Error, Standard Deviation

• School: University of Sydney
• Department: Business Studies
• Course: BUSS1020
• Professor: All

Document Summary

Buss1020 lecture 8 confidence intervals & hypothesis testing. Point estimate a single no. (mean value) Confidence interval provides additional info about variability of the estimate. A range of possible outcomes based on probability distribution. Upper confidence limit lower confidence limit = width of confidence interval. Interval estimate provides more info about a population parameter than point estimate. An interval gives a range of values: Takes into consideration variation in sample statistics, i. e. from sample to sample. Based on observations from only 1 sample. Gives i(cid:374)fo a(cid:271)out (cid:862)(cid:272)lose(cid:374)ess(cid:863) to u(cid:374)k(cid:374)o(cid:449)(cid:374) populatio(cid:374) para(cid:373)eters. Stated in terms of level of confidence, e. g. 95% confident, 99% confident: more value, higher confidence standard error changes, 100% confidence never happen. Population has mean of 368 & stdev of 15. Take a sample of size n = 25 368 +- 1. 96 * 15/sq. root of 25 = (362. 12, 373. 88) which contains 95% of possible sample means when n = 25.