7.9: Chapter 7 Formulas

EC225: Research Methods and Statistics for Economics · LibreTexts

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    7.9: Chapter 7 Formulas

    Confidence Interval for One Proportion

    \(\begin{aligned}
    &\hat{p} \pm z_{\frac{\alpha}{2}} \sqrt{\left(\frac{\hat{p q}}{n}\right)} \\
    &\hat{p}=\frac{x}{n} \\
    &\hat{q}=1-\hat{p}
    \end{aligned}\)

    TI-84: 1-PropZInt

    Sample Size for Proportion

    \(n=p^{*} \cdot q^{*}\left(\frac{z_{\alpha / 2}}{E}\right)^{2}\)

    Always round up to whole number.

    If p is not given use p* = 0.5.

    E = Margin of Error

    Confidence Interval for One Mean

    Use z-interval when σ is given.

    Use t-interval when s is given.

    If n < 30, population needs to be normal.

    Z-Confidence Interval

    \(\bar{x} \pm z_{\frac{\alpha}{2}}\left(\frac{\sigma}{\sqrt{n}}\right)\)

    TI-84: ZInterval

    Z-Critical Values

    Excel: z\(\alpha\)/2 =NORM.INV(1–area/2,0,1)

    TI-84: z\(\alpha\)/2 = invNorm(1–area/2,0,1)

    t-Critical Values

    Excel: t\(\alpha\)/2 =T.INV(1–area/2,df)

    TI-84: t\(\alpha\)/2 = invT(1–area/2,df)

    t-Confidence Interval

    \(\bar{x} \pm t_{\alpha / 2}\left(\frac{s}{\sqrt{n}}\right)\)

    df = n – 1

    TI-84: TInterval

    Sample Size for Mean

    \(n=\left(\frac{z_{\alpha / 2} \cdot \sigma}{E}\right)^{2}\)

    Always round up to whole number.

    E = Margin of Error


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