00:01
We've been given some sample data.
00:02
Sample size n is 90.
00:05
Sample mean x bar is 37 .79.
00:09
We also have the population standard deviation, sigma, 5 .3.
00:15
Using this we want to make a 98 % confidence interval.
00:19
So the formula we need is point estimate x bar plus and minus the margin of error, z sigma over root n.
00:29
Sigma over root n is the standard error, z is our critical value.
00:33
There's another type of critical value, t, and why are we using z? well, z is preferable and we meet the requirements.
00:42
A big requirement is sigma should be known.
00:44
We do know sigma so we can definitely use z, but even if i didn't know sigma, even if i had s instead, i would still be using z here.
00:54
Because another possible requirement is having a large sample.
00:59
Different textbooks have different ideas what large means.
01:02
I use n over 30 because as sample size increases, s over root n becomes a better and better estimate of the standard error.
01:15
So what is z? we get it from a level of confidence and i'm going to explain this and explain part two as well while i'm at it.
01:25
As sample means, as sample size increases, the sample means get more and more normally distributed compared to the population.
01:34
That's the central limit theorem.
01:39
And if the sample size n is at least 30, you can treat the distribution of sample means as approximately normal regardless of the shape of the original distribution...