ECON 203 1st Edition Lecture 4 Outline of Last Lecture I. Review of key class features1. Office Hours 2. HomeworkII. Aplia Homework 21. Hypothesis Testing, Example 12i. Relevant Point Estimateii. Value of Test Statisticiii. P-valueiv. Type I error conclusionI.Outline of Current Lecture I. Office HoursII. Confidence Interval Estimation1. Formulasi. Standard Errorii. Margin of Erroriii. Formula Sheet2. Example on slide 26 of notes package3. Example on slide 29 of notes package4. Rounding5. Example on slide 33 of notes packageCurrent LectureI. Office Hours- Monday through Thursday from 11am to 6pm- TA’s are there ready to helpII. Confidence Interval Estimation- Point estimates include: “u”, standard deviation, “s” “p” etc.1. Formulas:i. Standard Error … for Population Mean w/Sigma known= (standard dev./square root of “n”)Population mean w/Sigma unknown= (s/square root of “n”)Population Proportion = square root of (p(1-p)/”n”)These notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.ii. Margin of Error…For Population Mean w/Sigma known = z+or- standard dev./square root of “n”iii. Get used to using the formula sheet in the back of the notes package so that when we have an exam you will be used to referring to that sheet2. Example on slide 26 of notes package:Answer 1-a = .90 a = .10 a/2 = .05 95% : 1-a = .95 a = .05 a/2 = .025Z.025 = 1.96 3. Example on slide 29 of notes package:Answer n = 70 s = $24,000 average = $856,000 standard dev. = $28,00010% significance level [850000 . 861000] 4. Rounding: Always round “n” up, e.g. calculate 84.2 up to 85 5. Example on slide 33 of notes package: Answer n = 49 standard deviation = .78 average = 32.6It’s a “z” distributing because the standard deviation is known95% confidence interval: 32.6+/-1.96(.78/square root of 49) = [32.3816, 32.8184]99% confidence interval: 32.6+/-2.58(.78/square root of 49) = [32.3125,
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