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Statistics · Chapter 6 of 10

Confidence intervals

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A confidence interval estimates an unknown population mean using sample data. Because the population standard deviation is usually unknown, we use the sample standard deviation and the -distribution instead of the normal distribution. The interval is , where is the sample mean, is the sample size, and is the critical value from the -distribution with degrees of freedom corresponding to the desired confidence level. The margin of error is . Add and subtract this margin from the sample mean to get the lower and upper bounds of the interval.

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