Here are the essential concepts you must grasp in order to answer the question correctly.
Standard Normal Distribution
The standard normal distribution is a probability distribution that is symmetric about the mean, with a mean of zero and a standard deviation of one. It is used in statistics to determine probabilities and critical values for hypothesis testing and confidence intervals. When sample sizes are large (typically n > 30), the Central Limit Theorem allows us to use this distribution to approximate the sampling distribution of the sample mean.
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Finding Standard Normal Probabilities using z-Table
t-Distribution
The t-distribution is a type of probability distribution that is used when the sample size is small (n < 30) or when the population standard deviation is unknown. It is similar to the standard normal distribution but has heavier tails, which provides a more accurate estimate of the population mean in these cases. The t-distribution is essential for constructing confidence intervals and conducting hypothesis tests when dealing with small samples.
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Critical Values: t-Distribution
Confidence Interval
A confidence interval is a range of values, derived from sample statistics, that is likely to contain the population parameter with a specified level of confidence, typically expressed as a percentage (e.g., 95%). It is calculated using the sample mean, the standard deviation, and the appropriate critical value from either the standard normal or t-distribution. Interpreting a confidence interval involves understanding that if the same sampling process were repeated multiple times, a certain percentage of the intervals would contain the true population mean.
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Introduction to Confidence Intervals