BUEC 232 Chapter 6: BUEC232 - Ch.06 Notes
29 Jun 2015
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BUEC 232 Full Course Notes
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Chapter 6 introduction to inference: statistical inference. To draw conclusions of a population based on information in a sample. 2 methods: confidence intervals, test of significances. Goal is to estimate a population parameter: level c confidence interval. Gives the probability that the interval will capture the true parameter value in repeated samples. / n: recall 68-95-99. 7 rule (for normal distribution): Where z* is the critical value with area c between z* and z* under the standard normal curve. If the population is normal, the confidence interval is exact. If the population is not normal, the confidence interval is approximately correct for a large sample size, n (central limit. How confidence intervals behave: to reduce margin of error [(z*) Use a lower level of confidence (c), i. e. smaller z* Choosing the sample size: to obtain a desired margin of error (m) with a predetermined level of confidence (z*), set: N = m (z*) n = [(z*) m.
