Confidence Interval for Population Mean (μ): Known vs Unknown σ

Click For Summary

Discussion Overview

The discussion centers around the differences between constructing confidence intervals for the population mean (μ) when the population standard deviation (σ) is known versus when it is unknown. The scope includes theoretical aspects and practical applications in statistical analysis.

Discussion Character

  • Technical explanation
  • Conceptual clarification
  • Debate/contested

Main Points Raised

  • Some participants note that when σ is known, a z-test is typically used to form the confidence interval, while an unknown σ usually requires a t-test.
  • One participant mentions that statistical software like SAS defaults to assuming σ is unknown and thus uses a t-test for calculations.
  • Another participant highlights that the formula for the confidence interval when σ is known involves a specific calculation using the z-score and the standard deviation.
  • It is pointed out that confidence intervals with known σ will have consistent widths, whereas those with estimated σ will vary in width across different samples.

Areas of Agreement / Disagreement

Participants express varying views on the implications of known versus unknown σ, with some agreeing on the general principles while others introduce nuances and exceptions, indicating that the discussion remains somewhat unresolved.

Contextual Notes

There are mentions of caveats regarding the application of tests and the assumptions underlying the use of z-tests versus t-tests, but these aspects are not fully explored or resolved in the discussion.

Who May Find This Useful

This discussion may be useful for students and practitioners in statistics, particularly those interested in understanding the implications of known versus unknown population standard deviations in confidence interval estimation.

onceinalifetim
Messages
38
Reaction score
0
Hello

May I know what is the difference between

Confidence Interval for Population Mean (μ) when σ Known vs Confidence Interval for Population Mean (μ) when σ unknown..

any example to show me??
 
Physics news on Phys.org
What you'll typically see in a beginners course varies. If for some reason you form a CI with the s.d known you'll use a z-test. If it isn't known, you'll typically have to use a t-test. There are some caveats to this, and it really depends on how loose you want to be with it. An important thing to note is that if you are using SAS, it will assume that the s.d is unknown (because that's common) and give you values based on a t-test.
 
[tex] \overline{X} \pm (z_{conf})(\sigma_\overline{x})[/tex]

Try using a sample standard deviation by using the bessel correction in the computation formula for s within [tex]\frac{\sigma}{\sqrt{n}}[/tex]
 
One important difference is that if the std is known, then the CI's will be all of the same width, while if sigma has to be estimated, the width will also vary between repetitions.
 

Similar threads

  • · Replies 22 ·
Replies
22
Views
4K
  • · Replies 1 ·
Replies
1
Views
1K
  • · Replies 23 ·
Replies
23
Views
3K
  • · Replies 9 ·
Replies
9
Views
3K
  • · Replies 3 ·
Replies
3
Views
2K
  • · Replies 3 ·
Replies
3
Views
2K
  • · Replies 21 ·
Replies
21
Views
4K
  • · Replies 18 ·
Replies
18
Views
4K
  • · Replies 24 ·
Replies
24
Views
6K
  • · Replies 7 ·
Replies
7
Views
3K