Fourth Quarter Activity 3

Lesson 3 : POINT AND INTERVAL ESTIMATE WITH KNOWN VARIANCE
Fourth Quarter - Activity 3

Learning Objectives:
a. Illustrate point and interval estimations
b. Distinguish between point and interval estimations
c. Identify point estimator for the population mean
d. Compute for the point estimate for the population mean
e. Identify the appropriate form of the confidence interval estimator for the population mean when the population
variance is known
f. Compute for the confidence interval estimate based on the appropriate form of the estimator of the population mean.
Concept Notes
• Point estimation is the process of finding a single value, called point estimate, from a random sample of the
population, to approximate a population parameter.
• The sample mean 𝑥̅ is the point estimate of the population mean 𝜇
• The sample variance 𝑠 2 is the point estimate of the population variance 𝜎 2
Example 1. The sample mean 𝑥̅ is 45.12 and the population mean 𝜇 is 46.51. Here, the point estimate is the single value
45.12
Note: A good point estimate is unbiased. If random sampling was done in the collection of a set of data, and a
sample mean is computed out of these data to approximate the population mean 𝜇 , then the point estimate 𝑥̅ is a
good point estimate.
INTERVAL ESTIMATE OF POPULATION MEAN WITH KNOWN VARIANCE
• Confidence Interval refers to the range of values within which the population parameter is most likely to be located
• Confidence level refers to the probability that the confidence interval contains the true population parameter. Its
values is
Confidence level = (1-𝛼) 100%
where 𝛼 = probability that the confidence interval does not contain the true population parameter
• The value of 𝛼 can be arbitrarily chosen. Any number between 0 and 1 can be used for alpha (𝛼) but 0.10, 0.05,
and 0.01 are the ones commonly used.
• Critical value is the value that indicates the point beyond which lies the rejection region. This region does not
contain the true population parameter.
Formula for interval estimate of population mean when population variance is known and n≥ 30.
𝝈 𝝈
𝒙̅ − 𝒛𝜶 <𝝁<𝒙̅ + 𝒛𝜶
𝟐 √𝒏 𝟐 √𝒏
where : 𝑥̅ = mean of a random sample of size n
n = sample size
𝜎 = population standard deviation
𝛼
𝑧𝛼 = z value at ( 1 − ) confidence level
2 2
For a specific value, 𝛼 = 0.05, the distribution of 𝑥̅ ′𝑠 is:
The mean of a random sample of size n is usually different from the population mean 𝜇. The difference which is added to
and subtracted from the sample mean in the computation of confidence interval is considered an error. In the formula for
𝜎
confidence interval it is equal to 𝑧𝛼 .
2 √𝑛
The confidence interval can be written as,
̅−𝑬< 𝝁< 𝒙
𝒙 ̅+𝑬
Example 2. The mean score of a random sample of 49 Grade 11 students who took the first periodic test is calculated to
be 78. The population variance is known to be 0.16.
a. Find the 95% confidence interval for the mean of the entire Grade 11 students.
b. Find the lower and upper confidence limits
SOLUTION:
Step 1. Find the value 𝒛𝜶
𝟐
Given 𝑥̅ = 78 , 𝜎 2 = 0.16, 𝑛 = 49
Confidence level is 95% Subtract 0.025 from 0.5:
(1-𝛼) 100% = 95% 0.5 – 0.025 = 0.4750
(1-𝛼) = 0.95 Use the z-table. Locate the area 0.4750, take the value
𝛼 = 0.05 of z that corresponds to the area 0.4750.
𝜶
= 0.025 Therefore, 𝒛𝜶 = 𝟏. 𝟗𝟔
𝟐 𝟐
Step 2. Find 𝜎 , then find the margin of error.
𝝈 0.4
𝜎 = √𝜎 2 = √0.16 = 𝟎. 𝟒 So, E = 𝑧𝛼 = 1.96 ( ) = 0.11
2 √𝒏 √49
Step 3. Substitute the value of 𝑥̅ and E in the confidence interval
𝑥̅ − 𝐸 < 𝜇 < 𝑥̅ + 𝐸
78 − 0.11 < 𝜇 < 78 + 0.11
𝟕𝟕. 𝟖𝟗 < 𝝁 < 𝟕𝟖. 𝟏𝟏
𝛼
= 0.025 Confidence level 𝛼
= 0.025
2
95% 2
-1.96 0 1.96
Interpretation: The researcher is 95% confident that the sample mean 𝑥̅ = 78 differs from the population mean 𝜇 by no
more than 0.11. Also, the researcher is 95% confident that the population mean 𝜇 is between 77.89 and 78.11 when the
mean of the sample is 78.
ACTIVITY 3. Give what is asked in each item. Copy and answer on a whole sheet of paper.
A. Find 𝛼 in the following confidence levels.
1. 88%
2. 92%
3. 91%
4. 98%
5. 94%
B. Find the critical value 𝑧𝜶 that corresponds to the given confidence level.
2
6. 88%
7. 92%
8. 91%
9. 98%
10. 94%
C. Find the margin of error
11. Confidence level: 95% 𝜎 = 0.60 𝑛 = 44
12. Confidence level: 90% 𝜎 = 12 𝑛 = 42
13. Confidence level: 99% 𝜎 = 18𝑘𝑔 𝑛 = 60
D. Solve the following word problems.
14. The mean and standard deviation of the scores of a random sample of 45 Grade 10 students who took the
final test are calculated to be 76 and 12.5, respectively.
a. Find the 95% confidence interval for the mean of the entire Grade 10 students
b. Find the lower and upper confidence limits
15. The mean and standard deviation of the blood sugar level of randomly selected 50 patients in a hospital are
130/dl and 4.6 mg/dl, respectively.
a. Find the 90% confidence interval for the mean of all patients in the hospital
b. Find the lower and upper confidence limits.

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Lesson 3 : POINT AND INTERVAL ESTIMATE WITH KNOWN VARIANCE

Fourth Quarter - Activity 3

INTERVAL ESTIMATE OF POPULATION MEAN WITH KNOWN VARIANCE

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