BAN 001 Chapter Notes - Chapter 9: Central Limit Theorem, Confidence Interval, Interval Estimation

• School: Hofstra University
• Department: Business Analytics
• Course: BAN 001
• Professor: John Affisco

Document Summary

We want to estimate or make a statement about a population parameter - say the population mean or the population standard deviation. The way to do this without experiencing any error is to base it on a complete census of the population. Practically this is generally impossible due to: Testing techniques that are destructive of the population. We wish to infer the value of the population mean base on the value of the sample mean calculated based on sample data. infer. Assume there is a statistics class with 100 students. This is an evening class composed of both traditional and nontraditional students. We would like to infer the average age of the population of. We hand out cards numbered 1 to 100 and ask each student to record his/her age on the card. We put all the cards in a bin and have a student select three cards at random. Thus we have taken a random sample of 3 students.