6.4 Confidence intervals for Variance and Standard deviation

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6.4 CONFIDENCE INTERVALS FOR VARIANCE AND STANDARD DEVIATION Interpret the chi-square distribution and use a chi- square distribution table Use the chi-square distribution to construct a confidence interval for the variance and standard deviation

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6.4 Confidence intervals for Variance and Standard deviation. Interpret the chi-square distribution and use a chi-square distribution table Use the chi-square distribution to construct a confidence interval for the variance and standard deviation. - PowerPoint PPT Presentation

Transcript of 6.4 Confidence intervals for Variance and Standard deviation

Page 1: 6.4 Confidence intervals for Variance and Standard deviation

6.4 CONFIDENCE INTERVALS FOR VARIANCE AND STANDARD DEVIATION•Interpret the chi-square distribution and use a chi-square distribution table•Use the chi-square distribution to construct a confidence interval for the variance and standard deviation

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POINT ESTIMATES FOR VARIANCE AND STANDARD DEVIATION

The point estimate for σ² is s² and the point estimate for σ is s. The most unbiased estimate for σ² is s².

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CHI-SQUARE DISTRIBUTIONIf a random variable x has a normal distribution, then the distributions of

forms a chi-square distribution for samples of any size n > 1.

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CHI-SQUARE DISTRIBUTIONFour properties of the chi-square distribution are as follows:1. All chi-square values X² are greater than or equal to 0.2. The chi-square distribution is a family of curves, each determined by the degrees of freedom. To form a confidence interval for σ², use the X²-distribution with degrees of freedom equal to one less than the sample size.

d.f. = n – 13. The area under each curve of the chi-square distribution equals 1.4. Chi-squared distributions are positively skewed.

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TRY IT YOURSELF 1 Finding Critical Values for X²Find the critical values for a 90%

confidence interval when the sample size is 30.

Critical values: 17.708 and 42.557

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CONFIDENCE INTERVALS FOR VARIANCE AND STANDARD DEVIATIONThe c-confidence intervals for the population variance and standard deviation are as follows.Confidence Interval for σ²:

Confidence Interval for σ:

The probability that the confidence intervals contain σ² or σ is c.

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TRY IT YOURSELF 2 Constructing a Confidence IntervalYou randomly select and weigh 30

samples of an allergy medicine. The sample standard deviation is 1.20 milligrams. Assuming the weights are normally distributed, find the 90% and 95% confidence intervals for the population variance and standard deviation of the medicine weights.90% CI for σ² (0.98, 2.36) and 90% CI for σ (0.99, 1.54)

95% CI for σ² (0.91, 2.60) and 95% CI for σ (0.96, 1.61)