Question
Whenis unknown and the sample is of size n 30, there are two methods for computing confidence intervals for. Method 1: Use the Student's t
Whenis unknown and the sample is of sizen30, there are two methods for computing confidence intervals for.
Method 1: Use the Student'stdistribution withd.f.=n1.
This is the method used in the text. It is widely employed in statistical studies. Also, most statistical software packages use this method.
Method 2: Whenn30, use the sample standard deviationsas an estimate for, and then use the standard normal distribution.
This method is based on the fact that for large samples,sis a fairly good approximation for. Also, for largen, the critical values for the Student'stdistribution approach those of the standard normal distribution.
Consider a random sample of sizen=41, with sample meanx=44.0and sample standard deviations=4.9.(a) Compute 90%, 95%, and 99% confidence intervals forusing Method 1 with a Student'stdistribution. Round endpoints to two digits after the decimal.90%95%99%lower limitupper limit
(b) Compute 90%, 95%, and 99% confidence intervals forusing Method 2 with the standard normal distribution. Usesas an estimate for. Round endpoints to two digits after the decimal.90%95%99%lower limitupper limit
(c) Compare intervals for the two methods. Would you say that confidence intervals using a Student'stdistribution are more conservative in the sense that they tend to be longer than intervals based on the standard normal distribution?
No. The respective intervals based on thetdistribution are longer.
Yes. The respective intervals based on thetdistribution are shorter.
Yes. The respective intervals based on thetdistribution are longer.
No. The respective intervals based on thetdistribution are shorter.
(d) Now consider a sample size of71. Compute 90%, 95%, and 99% confidence intervals forusing Method 1 with a Student'stdistribution. Round endpoints to two digits after the decimal.90%95%99%lower limitupper limit
(e) Compute 90%, 95%, and 99% confidence intervals forusing Method 2 with the standard normal distribution. Usesas an estimate for. Round endpoints to two digits after the decimal.90%95%99%lower limitupper limit
(f) Compare intervals for the two methods. Would you say that confidence intervals using a Student'stdistribution are more conservative in the sense that they tend to be longer than intervals based on the standard normal distribution?
No. The respective intervals based on thetdistribution are longer.
Yes. The respective intervals based on thetdistribution are longer.
Yes. The respective intervals based on thetdistribution are shorter.
No. The respective intervals based on thetdistribution are shorter.
With increased sample size, do the two methods give respective confidence intervals that are more similar?
As the sample size increases, the difference between the two methods becomes greater.
As the sample size increases, the difference between the two methods is less pronounced.
As the sample size increases, the difference between the two methods remains constant
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started