Chapter 7

Confident Intervals and Sample Size

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Confidence Intervals and Sample Size

Outline
7
7-1 Confidence Intervals for the Mean When 
Is Known
7-2 Confidence Intervals for the Mean When 
Is Unknown
7-3 Confidence Intervals and Sample Size for
Proportions
7-4 Confidence Intervals for Variances and
Standard Deviations
Confidence Intervals and Sample Size

Objectives
7
1 Find the confidence interval for the mean when
 is known.
2 Determine the minimum sample size for finding
a confidence interval for the mean.
3 Find the confidence interval for the mean when
 is unknown.
4 Find the confidence interval for a proportion.
5 Determine the minimum sample size for finding
a confidence interval for a proportion.
Confidence Intervals and Sample Size

Objectives
7
6 Find a confidence interval for a variance and a
standard deviation.
7.1 Confidence Intervals for the
Mean When  Is Known
• A point estimate is a specific
numerical value estimate of a
parameter.
• The best point estimate of the
population mean µ is the sample
X.
mean
Bluman, Chapter 7 5
Three Properties of a Good
Estimator
1. The estimator should be an
unbiased estimator. That is,
the expected value or the mean
of the estimates obtained from
samples of a given size is equal
to the parameter being
estimated.
Bluman, Chapter 7 6
Three Properties of a Good
Estimator
2. The estimator should be
consistent. For a consistent
estimator, as sample size
increases, the value of the
estimator approaches the value
of the parameter estimated.

Bluman, Chapter 7 7
Three Properties of a Good
Estimator
3. The estimator should be a
relatively efficient estimator;
that is, of all the statistics that
can be used to estimate a
parameter, the relatively
efficient estimator has the
smallest variance.
Bluman, Chapter 7 8
Confidence Intervals for the Mean
When  Is Known
• An interval estimate of a parameter
is an interval or a range of values
used to estimate the parameter.
• This estimate may or may not
contain the value of the parameter
being estimated.

Bluman, Chapter 7 9
Confidence Level of an Interval
Estimate
• The confidence level of an interval estimate of a parameter is the
probability that the interval estimate will contain the parameter, assuming
that a large number of samples are selected and that the estimation
process on the same parameter is repeated.

Bluman, Chapter 7 10
Confidence Interval

• A confidence interval is a specific

interval estimate of a parameter
determined by using data obtained
from a sample and by using the
specific confidence level of the
estimate.

Bluman, Chapter 7 11
Confidence Intervals for the Mean (σ Known or n ≥
30) and Sample Size
Formula for the Confidence Interval
of the Mean for a Specific a

     
X  za / 2      X  za /2  
 n  n

For a 90% confidence interval: za / 2  1.65

For a 95% confidence interval: za / 2  1.96
For a 99% confidence interval: za / 2  2.58

Bluman, Chapter 7 13
95% Confidence Interval of the
Mean

Bluman, Chapter 7 14
Maximum Error of the Estimate

The maximum error of the estimate is the

maximum likely difference between the point
estimate of a parameter and the actual value
of the parameter.

  
E  za / 2  
 n

Bluman, Chapter 7 16
 Confidence Interval for a Mean
Rounding Rule
When you are computing a confidence interval for
a population mean by using raw data, round off to
one more decimal place than the number of
decimal places in the original data.

When you are computing a confidence interval for

a population mean by using a sample mean and a
standard deviation, round off to the same number
of decimal places as given for the mean.
Bluman, Chapter 7 17
Chapter 7
Confidence Intervals and Sample Size

Section 7-1
Example 7-1
Page #358

Bluman, Chapter 7 18
Example 7-1: Days to Sell an Aveo
A researcher wishes to estimate the number of days it
takes an automobile dealer to sell a Chevrolet Aveo. A
sample of 50 cars had a mean time on the dealer’s lot of 54
days. Assume the population standard deviation to be 6.0
days. Find the best point estimate of the population mean
and the 95% confidence interval of the population mean.


Xn
5
4
,6
.
0
,5
0,
9
5
%
z
1
.9
6 
The best point estimate of the mean is 54 days.


     
X  za 2      X  za 2  
 n  n

Bluman, Chapter 7 19
 
Xn
5
4
,6
.
0
,5
0,
9
5
%
z
1
.9
6 
Example 7-1: Days to Sell an Aveo

     
X  za 2      X  za 2  
 n  n
 6.0   6.0 
54  1.96      54  1.96  
 50   50 
54  1.7    54  1.7
52.3    55.7
52    56
One can say with 95% confidence that the interval between 52
and 56 days contains the population mean, based on a sample of
50 automobiles.
Bluman, Chapter 7 20
Chapter 7
Confidence Intervals and Sample Size

Section 7-1
Example 7-2
Page #358

Bluman, Chapter 7 21
Example 7-2: Waiting Times
A survey of 30 emergency room patients found that the
average waiting time for treatment was 174.3 minutes.

Assuming that the population standard deviation is 46.5

minutes, find the best point estimate of the population mean
and the 99% confidence of the population mean.

Bluman, Chapter 7 22
Example 7-2: Waiting Times

Hence, one can be 99% confident that the mean

waiting time for emergency room treatment is between
152.4 and 196.2 minutes.

Bluman, Chapter 7 23
95% Confidence Interval of the
Mean

Bluman, Chapter 7 24
95% Confidence Interval of the
Mean
One can be
95% confident
that an interval
built around a
specific sample
mean would
contain the
population
Bluman, Chapter 7 25
Finding z for 98% CL.
a 2

za 2  2.33

Bluman, Chapter 7 26
A sample of the reading scores of 35 fifth-graders has a
mean of 82. The standard deviation of the sample is 15.
a. Find the 95% confidence
interval of the mean
reading scores of all fifth-
graders.
b. Find the 99% confidence
interval of the mean
reading scores of all fifth-
graders.
c. Which interval is larger?
Explain why.
 n = 35 X = 82 s = 15
a. Find the 95% confidence interval of
mean reading scores of all fifth-graders.

 s   s 
X – za 2  n  < < X +za 2  n 
   
 15   15 
82 – (1.96)   <  < 82 + (1.96)  
 35   35 

82 – 4.97< < 82 + 4.97

77 <  < 87
n = 35 X = 82 s = 15
a. Find the 95% confidence interval of
mean reading scores of all fifth-graders.
77 <  < 87
Approximately 95% of the sample
means will fall within 1.96
standard errors of the
population mean,
so use za 2 = 1.96.
n = 35 X = 82 s = 15
b. Find the 99% confidence interval of the
mean reading scores of all fifth-graders.
 s   s 
X – za 2  n  < < X +za 2  n 
   

 15   15 
82 – (2.58)   < m < 82 + (2.58) 
 35   35 

82 – 6.54<  < 82 + 6.54

75<  < 89
n = 35 X = 82 s = 15
b. Find the 99% confidence interval of the
mean reading scores of all fifth-graders.

75<  < 89
Approximately 99% of the sample
means will fall within 2.58 standard
errors of the population mean,
so use za 2 = 2.58 .
c. Which interval is larger? Explain why.

95% confidence level = 77<  < 87

99% confidence level = 75<  < 89

The 99% confidence interval

is larger because the
confidence level is larger.
A study of 40 English composition professors showed
that they spent, on average, 12.6 minutes correcting a
student’s term paper.

a. Find the 90% confidence interval

of the mean time for all composition
papers when  = 2.5 minutes.

b. If a professor stated that he

spent, on average, 30 minutes
correcting a term paper,
what would be your reaction?
n = 40 X = 12.6
a. Find the 90% confidence interval of the
mean time for all composition papers
when  = 2.5 minutes.
 s   s 
X – za 2  n  < < X +za 2  n 
   
 2.5   2.5 
12.6 – (1.65)   <  < 12.6 + (1.65) 
 40   40 
12.6 – 0.652<  < 12.6 + 0.652

11.9<  < 13.3

b. If a professor stated that he spent, on average, 30
minutes correcting a term paper, what would be
your reaction?
11.9 <  < 13.3

It would be highly unlikely since this

is far larger than 13.3 minutes.
 47 95 54 33 64 4 8 57 9 80

8 90 3 49 4 44 79 80 48 16

68 7 15 21 52 6 78 109 40 50

29

A random sample of the number of farms

(in thousands) in various states is found
above. Estimate the mean number of
farms per state with 90% confidence.
 47 95 54 33 64 4 8 57 9 80

8 90 3 49 4 44 79 80 48 16

68 7 15 21 52 6 78 109 40 50

29

X = 43.45 s = 31.27
 31.27   31.27 
43.45 – 1.65   <  < 43.45 + 1.65  
 31   31 
43.45 – 9.27 <  < 43.45 + 9.27

34.18 <  < 52.72

or
34.2 <  < 52.7
Chapter 7
Confidence Intervals and Sample Size

Section 7-1
Example 7-3
Page #360

Bluman, Chapter 7 38
Example 7-3: Credit Union Assets
The following data represent a sample of the assets (in
millions of dollars) of 30 credit unions in southwestern
Pennsylvania. Find the 90% confidence interval of the
mean.
12.23 16.56 4.39
2.89 1.24 2.17
13.19 9.16 1.42
73.25 1.91 14.64
11.59 6.69 1.06
8.74 3.17 18.13
7.92 4.78 16.85
Bluman, Chapter 7 39
Example 7-3: Credit Union Assets
Step 1: Find the mean and standard deviation. Using
technology, we find X = 11.091 and s = 14.405.
Assume   14.405.
Step 2: Find α/2. 90% CL  α/2 = 0.05.
Step 3: Find zα/2. 90% CL  α/2 = 0.05  z.05 = 1.65

Table E
The Standard Normal Distribution
z .00 … .04 .05 … .09
0.0
0.1

.
.
.

1.6 0.9495 0.9505

Bluman, Chapter 7 40
Example 7-3: Credit Union Assets
Step 4: Substitute in the formula.
     
X  za 2      X  za 2  
 n  n
 14.405   14.405 
11.091  1.65      11.091  1.65  
 30   30 
11.091  4.339    11.091  4.339
6.752    15.430
One can be 90% confident that the population mean of the
assets of all credit unions is between $6.752 million and
$15.430 million, based on a sample of 30 credit unions.
Bluman, Chapter 7 41
Technology Note
This chapter and subsequent chapters include examples
using raw data. If you are using computer or calculator
programs to find the solutions, the answers you get may
vary somewhat from the ones given in the textbook.

This is so because computers and calculators do not round

the answers in the intermediate steps and can use 12 or
more decimal places for computation. Also, they use more
exact values than those given in the tables in the back of
this book.

These discrepancies are part and parcel of statistics.

Bluman, Chapter 7 42
Formula for Minimum Sample Size
Needed for an Interval Estimate of the
Population Mean

 za 2   
2

n 
 E 

where E is the margin of error. If necessary, round the

answer up to obtain a whole number. That is, if there is any
fraction or decimal portion in the answer, use the next
whole number for sample size n.

Bluman, Chapter 7 43
Chapter 7
Confidence Intervals and Sample Size

Section 7-1
Example 7-4
Page #362

Bluman, Chapter 7 44
Example 7-4: Depth of a River
A scientist wishes to estimate the average depth of a river.
He wants to be 99% confident that the estimate is accurate
within 2 feet. From a previous study, the standard deviation


of the depths measured was 4.33 feet. How large a sample
is required?

9
9
%
z
2.
5
8
,E
2
,
4.
3
3
 
2
 a2  2  .3
2
z .5
84 3
n    3
1.2 32
 E   2 

Therefore, to be 99% confident that the estimate is within 2

feet of the true mean depth, the scientist needs at least a
sample of 32 measurements.
Bluman, Chapter 7 45
An insurance company is trying to estimate the average
number of sick days that full-time food service workers
use per year. A pilot study found the standard deviation
to be 2.5 days. How large a sample must
be selected if the company wants to be
95% confident of getting an interval
that contains the true mean with a
maximum error of 1 day?
s = 2.5
confidence level = 95%
maximum error = 1 day
 s = 2.5
confidence level = 95%
maximum error = 1 day

2
 za 2    (1.96)(2.5)  2 2
n = =
   = (4.9)
 E   1

or
n = 25 workers n = 24.01
7.2 Confidence Intervals for the
Mean When  Is Unknown
The value of , when it is not known, must be estimated
by using s, the standard deviation of the sample.

When s is used, especially when the sample size is small

(less than 30), critical values greater than the values for
za 2 are used in confidence intervals in order to keep the
interval at a given level, such as the 95%.

These values are taken from the Student t distribution,

most often called the t distribution.

Bluman, Chapter 7 48
Characteristics of the t Distribution
The t distribution is similar to the standard normal
distribution in these ways:
1. It is bell-shaped.
2. It is symmetric about the mean.
3. The mean, median, and mode are equal to 0 and are located at the
center of the distribution.

4. The curve never touches the x axis.

Bluman, Chapter 7 49
Characteristics of the t Distribution
The t distribution differs from the standard normal
distribution in the following ways:
1. The variance is greater than 1.
2. The t distribution is actually a family of curves based on the concept of
degrees of freedom, which is related to sample size.
3. As the sample size increases, the t distribution approaches the
standard normal distribution.

Bluman, Chapter 7 50
Degrees of Freedom
• The symbol d.f. will be used for degrees of
freedom.
• The degrees of freedom for a confidence
interval for the mean are found by subtracting 1
from the sample size. That is, d.f. = n – 1.
• Note: For some statistical tests used later in
this book, the degrees of freedom are not equal
to n – 1.

Bluman, Chapter 7 51
Formula for a Specific Confidence
Interval for the Mean When  Is
Unknown and n < 30

 s   s 
X  ta 2      X  ta 2  
 n  n

The degrees of freedom are n – 1.

Bluman, Chapter 7 52
Chapter 7
Confidence Intervals and Sample Size

Section 7-2
Example 7-5
Page #369

Bluman, Chapter 7 53
Example 7-5: Using Table F
Find the tα/2 value for a 95% confidence interval when the
sample size is 22.

Degrees of freedom are d.f. = 21.

Bluman, Chapter 7 54
Chapter 7
Confidence Intervals and Sample Size

Section 7-2
Example 7-6
Page #370

Bluman, Chapter 7 56
Example 7-6: Sleeping Time
Ten randomly selected people were asked how long they
slept at night. The mean time was 7.1 hours, and the
standard deviation was 0.78 hour. Find the 95% confidence
interval of the mean time. Assume the variable is normally
distributed.

Since  is unknown and s must replace it, the t distribution

(Table F) must be used for the confidence interval. Hence,
with 9 degrees of freedom, tα/2 = 2.262.
 s   s 
X  ta 2      X  ta 2  
 n  n
 0.78   0.78 
7.1  2.262      7.1  2.262  
 10   10 
Bluman, Chapter 7 57
Example 7-6: Sleeping Time

 0.78   0.78 
7.1  2.262      7.1  2.262  
 10   10 
7.1  0.56    7.1  0.56

6.5    7.7

One can be 95% confident that the population mean is

between 6.5 and 7.7 hours.

Bluman, Chapter 7 58
Chapter 7
Confidence Intervals and Sample Size

Section 7-2
Example 7-7
Page #370

Bluman, Chapter 7 59
Example 7-7: Home Fires by Candles
The data represent a sample of the number of home fires
started by candles for the past several years. Find the 99%
confidence interval for the mean number of home fires
started by candles each year.
5460 5900 6090 6310 7160 8440 9930

Step 1: Find the mean and standard deviation. The mean

is X = 7041.4 and standard deviation s = 1610.3.

Step 2: Find tα/2 in Table F. The confidence level is 99%,

and the degrees of freedom d.f. = 6
t .005 = 3.707.

Bluman, Chapter 7 60
Example 7-7: Home Fires by Candles
Step 3: Substitute in the formula.
 s   s 
X  ta 2      X  ta 2  
 n  n

7
0
4
1
.
43.707


1
 
61 0
.
7
3

  7041 .
4 3.
707


1
6
1
0
7

.
3
 

7041.4  2256.2    7041.4  2256.2
4785.2    9297.6

One can be 99% confident that the population mean

number of home fires started by candles each year is
between 4785.2 and 9297.6, based on a sample of home
fires occurring over a period of 7 years.
Bluman, Chapter 7 61
A state representative wishes to estimate the mean
number of women representatives per state legislature. A
random sample of 17 states is selected, and the number of
women representatives is shown.Based on
the sample, what is the point estimate of the
mean? Find the 90% confidence interval of
the mean population. (Note: The population
mean is actually 31.72, or about 32.)
Compare this value to the point estimate
and the confidence interval. There is
something unusual about the data.
Describe it and state how it would
affect the confidence interval.
 5 33 35 37 24
31 16 45 19 13
18 29 15 39 18
58 132

X = 33.4 s = 28.7
 s   s 
X – ta 2  n  <  < X + ta 2  n 
   
 28.7   28.7 
33.4 – 1.746   <  < 33.4 + 1.746  
 17   17 
33.4 – 12.2 <  < 33.4 + 12.2
21.2<  < 45.6
 A recent study of 28 employees of XYZ Company
showed that the mean of the distance they traveled to
work was 14.3 miles. The standard deviation of the
sample mean was 2 miles. Find the 95% confidence
interval of the true mean.
 s   s 
X – ta 2  n  <  < X + ta 2  n 
   

14.3 – 2.052  
2
28
<  < 14.3 + 2.052  
2
28

14.3 – 0.776<  < 14.3 + 0.776

  s   s 
X – ta 2  n  <  < X + ta 2  n 
   

14.3 – 2.052  
2
28
<  < 14.3 + 2.052  
2
28

14.3 – 0.776<  < 14.3 + 0.776

13.5<  < 15.1

If a manager wanted to be sure that most of his
employees would not be late, how much time would he
suggest they allow for the commute if the average
speed is 30 miles per hour?

14.3 mi 1
- hour
30 mi/hr 2

about 30 minutes
Chapter 7
Confidence Intervals and
Sample Size

Section 7-3

Exercise #19
The average yearly income for 28 community college
instructors was $56,718. The standard deviation was
$650. Find the 95% confidence interval of the
true mean.

 s   s 
X – ta 2  n  <  < X + ta 2  n 
   
  s   s 
X – ta 2  n  <  < X + ta 2  n 
   

 650   650 
$56, 718 – 2.052   <  < $56, 718 + 2.052  
 28   28 

$56, 466 <  < $56, 970

If a faculty member wishes to see if he or she is being
paid below average, what salary value should he or she
use?

Use the lower bound of the

confidence interval: $56,466
7.3 Confidence Intervals and
Sample Size for Proportions
p = population proportion
p̂ (read p “hat”) = sample proportion
For a sample proportion,
X 
nX

ˆ
p a
n
dˆ
q o
rˆ
q

1ˆ
p
n n

where X = number of sample units that possess the

characteristics of interest and n = sample size.

Bluman, Chapter 7 71
Chapter 7
Confidence Intervals and Sample Size

Section 7-3
Example 7-8
Page #376

Bluman, Chapter 7 72
Example 7-8: Air Conditioned
Households
In a recent survey of 150 households, 54 had central air
conditioning. Find p̂ and q̂, where p̂ is the proportion of
households that have central air conditioning.

Since X = 54 and n = 150,

X 54
pˆ    0.36  36%
n 150
qˆ  1  pˆ  1  0.36  0.64  64%

Bluman, Chapter 7 73
Formula for a Specific Confidence
Interval for a Proportion

ˆˆ
pq ˆˆ
pq
pˆ  za 2  p  pˆ  za 2
n n
when np  5 and nq  5.

Rounding Rule: Round off to three decimal places.

Bluman, Chapter 7 74
Chapter 7
Confidence Intervals and Sample Size

Section 7-3
Example 7-9
Page #377

Bluman, Chapter 7 75
Example 7-9: Covering College Costs
A survey conducted by Sallie Mae and Gallup of 1404
respondents found that 323 students paid for their
education by student loans.

Find the 90% confidence of the true proportion of students

who paid for their education by student loans.

Bluman, Chapter 7 76
 Example 7-9: Covering College Costs

Since α = 1 – 0.90 = 0.10, zα/2 = 1.65.

Bluman, Chapter 7 77
Example 7-9: Covering College Costs

You can be 90% confident that the percentage of

students who pay for their college education by
student loans is between 21.1 and 24.9%.

Bluman, Chapter 7 78
Chapter 7
Confidence Intervals and Sample Size

Section 7-3
Example 7-10
Page #377

Bluman, Chapter 7 79
Example 7-10: Religious Books
A survey of 1721 people found that 15.9% of individuals
purchase religious books at a Christian bookstore. Find the
95% confidence interval of the true proportion of people
who purchase their religious books at a Christian
bookstore.
ˆˆ
pq ˆˆ
pq
pˆ  za 2  p  pˆ  za 2
n n

0.159  1.96
 0.159  0.841  p  0.159  1.96  0.159  0.841
1721 1721

0.142  p  0.176

You can say with 95% confidence that the true

percentage is between 14.2% and 17.6%.
Bluman, Chapter 7 80
The proportion of students in private schools is around
11%. A random sample of 450 students from a wide
geographic area indicated that 55 attended private
schools. Estimate the true proportion of
students attending private schools with
95% confidence. How does your estimate
compare to 11%?
X 55
p̂ = = = 0.12 q̂ = 1– 0.12 = 0.88
n 450


pˆ – za 2  ˆˆ
pq
n 
< p < pˆ + za 2  ˆˆ
pq
n
 X 55 q̂ = 1– 0.12 = 0.88
p̂ = = = 0.12
n 450


pˆ – za 2  ˆˆ
pq
n 
< p < pˆ + za 2  ˆˆ
pq
n
 (0.12)(0.88) (0.12)(0.88)
0.12 – 1.96 < p < 0.12 + 1.96
450 450

0.12 – 0.03 < p < 0.12 + 0.03

0.09 < p < 0.15 or 9% < p < 15%

11% is contained in the

confidence interval.
 A survey found that out of 200 workers, 168 said they
were interrupted three or more times an hour by phone
messages, faxes, etc. Find the 90% confidence interval
of the population proportion of workers who are
interrupted three or more times an hour.
p̂ = 0.84 q̂ = 0.16


pˆ – za 2  ˆˆ
pq
n

< p < pˆ + za 2  ˆˆ
pq
n
 p̂ = 0.84 q̂ = 0.16


pˆ – za 2  ˆˆ
pq
n 
< p < pˆ + za 2  ˆˆ
pq
n

(0.84)(0.16) (0.84)(0.16)
0.84 – 1.65 < p < 0.84 + 1.65
200 200

0.84 – 0.043 < p < 0.84 + 0.043

0.797< p < 0.883

A study by the University of Michigan found that one in
five 13 and 14-year-olds is a sometime smoker. To see
how the smoking rate of the students at a large school
district compared to the national rate, the
superintendent surveyed two hundred
13 and 14-year-old students and found
that 23% said they were sometime
smokers. Find the 99% confidence
interval of the true proportion and
compare this with the University of
Michigan’s study.
Find the 99% confidence interval of the
true proportion.
n = 200 p̂ = 0.23
q̂ = 1– 0.23 = 0.77


pˆ – za 2  ˆˆ
pq
n

< p < pˆ + za 2  ˆˆ
pq
n
 (0.23)(0.77) (0.23)(0.77)
0.23 – 2.58 < p < 0.23 + 2.58
200 200
0.23 – 0.077 < p < 0.23 + 0.077
0.153 < p < 0.307
A study by the University of Michigan found that one in
five 13- and 14-year-olds is a sometime smoker. Find the
99% confidence interval of the true proportion and
compare this with the University of
Michigan’s study.
0.153 < p < 0.307
1
= 0.20
5

The University of Michigan study

falls within this confidence interval.
Chapter 7
Confidence Intervals and Sample
Size

Section 7-4

Exercise #15
A medical researcher wishes to determine the percentage
of females who take vitamins. He wishes to be 99%
confident that the estimate is within 2 percentage points
of the true proportion. A recent study of
180 females showed that 25%
took vitamins.
a. How large should the sample size be?
b. If no estimate of the sample proportion
is available, how large should the
sample be?
a. How large should the sample size be?

p̂ = 0.25 q̂ = 0.75
2
 za /2 
n = p̂q̂  
 E 
2
 2.58 
n =  0.25  0.75 
 .02 

n = 3120.187 or n = 3121
b. If no estimate of the sample proportion is
available, how large should the sample be?
p̂ = 0.5 q̂ = 0.5

2
 za / 2  2
n =  0.5  0.5  
ˆˆ
n = pq 2.58 
 E   0.02 

n = 4160.25 or n = 4161
Since there is no prior knowledge of
p or q, assign the values
q̂ = 0.5 and p̂ = 0.5.
Formula for Minimum Sample Size
Needed for Interval Estimate of a
Population Proportion

2
 za 2 
n  pq
ˆ ˆ 
 E 

If necessary, round up to the next whole number.

Bluman, Chapter 7 94
Chapter 7
Confidence Intervals and Sample Size

Section 7-3
Example 7-11
Page #378

Bluman, Chapter 7 95
Example 7-11: Home Computers
A researcher wishes to estimate, with 95% confidence, the
proportion of people who own a home computer. A previous
study shows that 40% of those interviewed had a computer
at home. The researcher wishes to be accurate within 2%
of the true proportion. Find the minimum sample size
necessary.
2 2
 za 2   1.96 
n  pq
ˆ ˆ    0.40  0.60   0.02   2304.96
 E   

The researcher should interview a sample of at least

2305 people.

Bluman, Chapter 7 96
Chapter 7
Confidence Intervals and Sample Size

Section 7-3
Example 7-12
Page #378

Bluman, Chapter 7 97
Example 7-12: M&M Colors
A researcher wishes to estimate the percentage of M&M’s
that are brown. He wants to be 95% confident and be
accurate within 3% of the true proportion.

How large a sample size would be necessary?

Since no prior knowledge of p̂ is known, assign a value of

0.5 and then q̂ = 1 – 0.5 = 0.5. Substitute in the formula,
using E = 0.03.

Bluman, Chapter 7 98
Example 7-12: M&M Colors

Bluman, Chapter 7 99
7-4 Confidence Intervals for
Variances and Standard Deviations
• When products that fit together (such as pipes) are
manufactured, it is important to keep the variations of
the diameters of the products as small as possible;
otherwise, they will not fit together properly and will
have to be scrapped.
• In the manufacture of medicines, the variance and
standard deviation of the medication in the pills play an
important role in making sure patients receive the
proper dosage.
• For these reasons, confidence intervals for variances
and standard deviations are necessary.
Bluman, Chapter 7 100
Chi-Square Distributions
• The chi-square distribution must be used to calculate
confidence intervals for variances and standard
deviations.

• The chi-square variable is similar to the t variable in

that its distribution is a family of curves based on the
number of degrees of freedom.

• The symbol for chi-square is  2(Greek letter chi,

pronounced “ki”).

• A chi-square variable cannot be negative, and the

distributions are skewed to the right.

Bluman, Chapter 7 101

Chi-Square Distributions
 At about 100 degrees of freedom, the chi-square
distribution becomes somewhat symmetric.

 The area under each chi-square distribution is equal to

1.00, or 100%.

Bluman, Chapter 7 102

Formula for the Confidence Interval for a
Variance
 n  1 s 2   2   n  1 s 2 , d.f. = n  1
 right
2 2
left
Formula for the Confidence Interval for
a Standard Deviation
 n  1 s 2

 
 n  1 s 2

, d.f. = n  1
 2
right  2
left

Bluman, Chapter 7 103

Chapter 7
Confidence Intervals and Sample Size

Section 7-4
Example 7-13
Page #385

Bluman, Chapter 7 104

Example 7-13: Using Table G
Find the values for  right and  left
2 2
for a 90% confidence
interval when n = 25.

 2
To find right , subtract 1 – 0.90 = 0.10. Divide by 2 to
 2
left get 0.05.
To find , subtract 1 – 0.05 to get 0.95.
Bluman, Chapter 7 105
Example 7-13: Using Table G
Use the 0.95 and 0.05 columns and the row corresponding
to 24 d.f. in Table G.

The right
2
value is 36.415; the left
2
value is 13.848.
Bluman, Chapter 7 106
 Confidence Interval for a Variance
or Standard Deviation
Rounding Rule

When you are computing a confidence interval for a

population variance or standard deviation by using raw
data, round off to one more decimal places than the
number of decimal places in the original data.

When you are computing a confidence interval for a

population variance or standard deviation by using a
sample variance or standard deviation, round off to the
same number of decimal places as given for the sample
variance or standard deviation.
Bluman, Chapter 7 107
Chapter 7
Confidence Intervals and Sample Size

Section 7-4
Example 7-14
Page #387

Bluman, Chapter 7 108

Example 7-14: Nicotine Content
Find the 95% confidence interval for the variance and
standard deviation of the nicotine content of cigarettes
manufactured if a sample of 20 cigarettes has a standard
deviation of 1.6 milligrams.


To find
2
right , subtract 1 – 0.95 = 0.05. Divide by 2 to

 left
2 get 0.025.

To find , subtract 1 – 0.025 to get 0.975.

In Table G, the 0.025 and 0.975 columns with the d.f.

19 row yield values of 32.852 and 8.907, respectively.

Bluman, Chapter 7 109

Example 7-14: Nicotine Content
 n  1 s 2   2   n  1 s 2
 right
2
left
2

19 1.6    2  19 1.6 

2 2

32.852 8.907
1.5   2  5.5
You can be 95% confident that the true variance for the
nicotine content is between 1.5 and 5.5 milligrams.
1.5    5.5
1.2    2.3
You can be 95% confident that the true standard
deviation is between 1.2 and 2.3 milligrams.
Bluman, Chapter 7 110
Chapter 7
Confidence Intervals and Sample Size

Section 7-4
Example 7-15
Page #387

Bluman, Chapter 7 111

Example 7-15: Cost of Ski Lift Tickets
Find the 90% confidence interval for the variance and
standard deviation for the price in dollars of an adult single-
day ski lift ticket. The data represent a selected sample of
nationwide ski resorts. Assume the variable is normally
distributed.
59 54 53 52 51
39 49 46 49 48

Using technology, we find the variance of the data is

s2 = 28.2.

In Table G, the 0.05 and 0.95 columns with the d.f. 9

row yield values of 16.919 and 3.325, respectively.
Bluman, Chapter 7 112
Example 7-15: Cost of Ski Lift Tickets
 n  1 s 2   2   n  1 s 2
 right
2
left
2

 9  28.2    2   9  28.2 
16.919 3.325
15.0   2  76.3
You can be 95% confident that the true variance for the
cost of ski lift tickets is between 15.0 and 76.3.
15.0    76.3
3.87    8.73
You can be 95% confident that the true standard
deviation is between $3.87 and $8.73.
Bluman, Chapter 7 113
Find the 90% confidence interval for the variance and
standard deviation for the time it takes a customer to
place a telephone order with a large catalog company
is a sample of 23 telephone orders has a standard
deviation of 3.8 minutes. Assume the variable is
normally distributed.
 2 2
(n – 1)s 2 (n – 1)s
< <
2 2
 right  left

2
22 3.8 
2
22 3.8 
2
< <
33.924 12.338

2
9.36 <  < 25.75

3.06 <  < 5.07

Chapter 7
Confidence Intervals and Sample
Size

Section 7-5

Exercise #6
Find the 99% confidence interval for the variance and
standard deviation of the weights of 25 one-gallon
containers of motor oil if a sample of 14 containers has
a variance of 3.2. Assume the variable is normally
distributed.
Find the 99% confidence interval for the
variance and standard deviation.
n = 14 s 2 = 3.2

(n – 1)s 2 2 (n – 1)s 2
< <
2 2

right left
13(3.2) 2 13(3.2)
29.819 <  < 3.565
1.4 <  2 < 11.7

1.2 <  < 3.4

Chapter 7
Confidence Intervals and Sample
Size

Section 7-5

Exercise #9
The number of calories in a 1-ounce serving of
various kinds of regular cheese is shown.
Estimate the population variance and standard
deviation with 90% confidence.
110 45 100 95 110

110 100 110 95 120

130 100 80 105 105

90 110 70 125 108

(n – 1)s 2 2 (n – 1)s 2
< <
2 2
right left

19(19.1913) 2 19(19.1913) 2
< 2 <
30.144 10.117

2
232.1 <  < 691.7

15.2 <  < 26.3

Chapter 7
Confidence Intervals and Sample
Size

Section 7-5

Exercise #11
A service station advertises that customers will have to
wait no more than 30 minutes for an oil change. A
sample of 28 oil changes has a standard deviation of
5.2 minutes. Find the 95% confidence interval of the
population standard deviation of the time spent waiting
for an oil change.
(n – 1)s 2 2 (n – 1)s 2
< <
2 2

right left

27(5.2)2 27(5.2) 2
< 2 <
43.194 14.573

16.9 <  2 < 50.1

4.1 <  < 7.1