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Stat Prob

This document discusses key concepts in statistical inference including: - The sampling distribution and central limit theorem which state that as sample size increases, the distribution of sample means approximates a normal distribution. - Properties of the normal curve including how standard deviation impacts the spread of the curve. - Confidence intervals and how changing the confidence level and sample size impact margin of error. - The steps in hypothesis testing including defining the null and alternative hypotheses, identifying test statistics, determining p-values, and making conclusions. - When to use z-tests and t-tests based on the population standard deviation being known or unknown and sample size.
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0% found this document useful (0 votes)
16 views7 pages

Stat Prob

This document discusses key concepts in statistical inference including: - The sampling distribution and central limit theorem which state that as sample size increases, the distribution of sample means approximates a normal distribution. - Properties of the normal curve including how standard deviation impacts the spread of the curve. - Confidence intervals and how changing the confidence level and sample size impact margin of error. - The steps in hypothesis testing including defining the null and alternative hypotheses, identifying test statistics, determining p-values, and making conclusions. - When to use z-tests and t-tests based on the population standard deviation being known or unknown and sample size.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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I.

ESTIMATION OF PARAMETERS
1. Population
- 𝜇 = Population mean
- 𝜎 = Population standard deviation
2. Sample
- 𝑥̅ = Sample mean
- 𝑠 = Sample standard deviation

A. SAMPLING DISTRIBUTION
- Each sample has its own mean value, and each value is different.
- By selecting and measuring more examples and observing the pattern of sample means, it refers to
the sampling distribution.
- The sampling distribution of a mean refers to the pattern of sample means that will occur as samples
are drawn from the population at large
Remark. If the sampled population is normal, then the sampling distribution of the sample mean will also be
normal, no matter what sample size we choose.
B. CENTRAL LIMIT THEOREM
- The mean of the population is equal to the mean of the sample means, that is 𝜇 = 𝜇𝑥̅
- The population standard deviation divided by sample size of each sample is equal to the standard
𝜎
deviation of the sample means, that is = 𝜎𝑥̅
√𝑛
- As the sample size increases, what happens to the standard error? It DECREASES.
- SE is dependent on the sample size n. If n is small, the distribution will be larger/wider or farther
away from the true value/parameter.
If the population is normal, then the sample means will have a Normal Distribution. Thus,

𝑥̅ − 𝜇
𝑧= 𝜎
√𝑛

If the population is NOT normal, but the sample size is 𝑛 ≥ 30, then the sampling distribution of sample means
approximates a Normal Distribution. Thus,

𝑥̅ − 𝜇
𝑧= 𝜎
√𝑛
The larger the sample size, the more normal the distribution of sample means becomes.
C. PROPERTIES OF A NORMAL CURVE
- The spread of the curve depends on the standard deviation of the distribution.
D. CONFIDENCE LEVEL
- It is a degree of certainty that the true population parameter falls within the constructed
confidence interval.
- It has a value of (1-𝜶) in %.

CONFIDENCE INTERVALS FOR THE MEAN WHEN STANDARD DEVIATION IS UNKNOWN:

✓ Finding 𝑡 Τ 𝛼/2 using MS Excel: The syntax is: = T.INV.2T(𝜶,n-1)


FOR WHEN CONSTRUCTING CONFIDENCE INTERVALS BASED ON DATA:

E. MARGIN OF ERROR
- Margin of error determines how reliable the survey is or how reliable the results of the experiment
are.
- The smaller the E, the more accurate the survey seems to be.
- The lower the margin of error, the higher likely it is that the results of the survey are true for the
whole population.

F. HYPOTHESIS TESTING
- a statistical tool or procedure that verifies a claim about the population whether the hypothesis is
true or false.
STEPS IN HYPOTHESIS TESTING
1. Formulate the null (H0) and alternative (Ha) hypotheses.
2. Identify the test statistic to use. Find the computed value.
3. Determine the p-value
4. Compare the level of significance and p-value.
5. Make a decision whether to reject or fail to reject H0.
6. State the conclusion.
NULL HYPOTHESIS (H0)
- is a statement or claim or conjecture to be tested.
- A claim or proposition that tells something about the population, which can be disapproved,
rejected, or nullified.
- Technically, it is the hypothesis that states no significant difference (equality) between two
parameters.
- Always contains “= “sign
- Other possible forms of the null hypothesis may include less than or equal to (≤) and greater than or
equal to (≥).
ALTERNATIVE HYPOTHESIS (Ha)
- is a claim that is accepted in case H0 is rejected.
- A claim that negates the null hypothesis
- Technically, it is the hypothesis that states that there is a significant difference (not equal) between
two parameters.
- Never contains “=“sign
- Uses “< or > or not equal to“
- It generally represents the idea which the researcher wants to prove

G. LEVEL OF SIGNIFICANCE
- Significance level (𝛼) the risk that the researcher will take of making a correct decision
Z-test:
- used when the distribution is normal
- o is known
- used if n is large or n is greater than equal 30
t-test:
- used as a substitute to Z, (when some conditions are not met to use Z)
- o is unknown
- used if n is small or n < 30; limited sample size
Syntax: = AVERAGE (x1, x2, … , x12) or = AVERAGE (A1:A12) depending on which cells you placed the values
= STDEV.S(x1, x2, … , x12) or = STDEV.S (A1:A12) depending on which cells you placed the values
H. DEGREE OF FREEDOM
- Is the number of variables allowed to vary without changing the mean
- For z distribution, df is not required
- For t distribution, df = n-1 for single population

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