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Suppose that the random variable is based on a random sample of
size from a normal population with mean and known variance .
Also suppose that the random variable is based on a random sample of
size from a normal population with mean and known variance .
The difference between population means has a mean and variance .
Therefore, the random variable
has a standard normal distribution.
We can use this fact to obtain confidence interval for the difference between the population means.
Definition:
When the variances and of two normal are known, then
confidence interval for is given by
.
Example:
A sample of size 13 from a normal population with variance 100
yielded . A sample of size 7 from a second normal population with variance 80 yielded .Find a 95 % confidence interval for .
Solution:
and
The 95 % confidence interval for is
Remark:
When and are both large, the normal approximation remains valid if and are replaced by their estimators and . When and are greater than 30, an approximate confidence interval for
is given by
where is the number for which
and Z follows standard normal distribution.
Example:
A sample of 50 yogurt cups produced by the company showed that they contain an average of 146 calories per cup with a standard deviation of
6.4 calories. A sample of 60 such yogurt cups produced by its competitor showed that they contained an average of 143 calories per cup with a standard deviation of 7.2 calories. Make a 97 % confidence interval for the difference between the mean number of calories in yogurt cups produced by the two companies.
Solution:
We can refer to the respective samples as sample 1 and sample 2.
Let and be the means of populations 1 and 2 respectively, and
let and be the means of the respective samples.
From the given information:
; ;
; ;
Since both sample sizes are large (, ) we can replace and by and respectively.
Then confidence interval for is given by
and
Finally, substituting all the values in the confidence interval formula, we obtain 97 % confidence interval for as
.
Thus, with 97 % confidence we can state that the difference in the mean calories of the two population of yogurt cups produced by two different companies is between 0.18 and 5.82.
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