SACE Methods

SACE Methods normal distribution and confidence intervals

A normal variable is set by its mean and standard deviation; standardise with z = (x - mu)/sigma. The mean of a sample of n has standard deviation sigma/sqrt(n), and a confidence interval is the sample estimate plus or minus z standard errors, for a mean or for a proportion.

The examination130 minutes, 100 marks, 30% of the subject
BookletsTwo question booklets of 50 marks, about 65 minutes each
AllowedA graphics calculator throughout, two A4 sheets of handwritten notes, a formula sheet
AnswersWorking shown; three significant figures unless a question says otherwise

Normal probabilities and sampling

  • About 68%, 95% and 99.7% of values lie within one, two and three standard deviations of the mean.
  • The sum of n independent observations has mean n mu and standard deviation sigma sqrt(n); their mean has mean mu and standard deviation sigma/sqrt(n). For large n both are close to normal, whatever the shape of X.

Confidence intervals

  • For 95% confidence use z = 1.96; for 90%, z = 1.645.
  • For a mean: x-bar plus or minus z sigma/sqrt(n). For a proportion: p-hat plus or minus z sqrt(p-hat(1 - p-hat)/n).
  • A claimed value inside the interval is consistent with the sample; outside, it is doubtful. Neither proves the claim.

Try 2 questions

Question 1Practice
The mass of an apple from an Adelaide Hills orchard has mean 150 g and standard deviation 12 g. A bag holds 9 apples chosen at random, with independent masses. What are the mean and standard deviation of the total mass?
Question 2Practice
A random sample of 36 bunches of shiraz grapes from a Barossa Valley vineyard has a mean mass of 152.4 g and a standard deviation of 18 g. Given  and  , which of the following is a 95% confidence interval for μ\mu, the mean mass in grams of all the bunches in the vineyard?

Next step

Questions people ask

What does a 95% confidence interval mean?

If many samples of the same size were taken and an interval built from each, about 95% of those intervals would contain the true value.

How do I make the margin of error smaller?

Take a larger sample or accept a lower level of confidence; quadrupling the sample size halves the margin of error.