1 00:00:00,190 --> 00:00:02,660 - [Instructor] We are asked what is the critical value, 2 00:00:02,660 --> 00:00:05,790 t star or t asterisk, for constructing 3 00:00:05,790 --> 00:00:09,310 a 98% confidence interval for a mean 4 00:00:09,310 --> 00:00:14,170 from a sample size of n is equal to 15 observations? 5 00:00:14,170 --> 00:00:16,630 So just as a reminder of what's going on here, 6 00:00:16,630 --> 00:00:18,370 you have some population. 7 00:00:18,370 --> 00:00:19,580 There's a parameter here, 8 00:00:19,580 --> 00:00:21,410 let's say it's the population mean. 9 00:00:21,410 --> 00:00:24,970 We do not know what this is, so we take a sample. 10 00:00:24,970 --> 00:00:27,580 Here we're going to take a sample of 15, 11 00:00:27,580 --> 00:00:30,990 so n is equal to 15, and from that sample 12 00:00:30,990 --> 00:00:33,200 we can calculate a sample mean. 13 00:00:33,200 --> 00:00:36,340 But we also want to construct a 98% confidence interval 14 00:00:36,340 --> 00:00:38,010 about that sample mean. 15 00:00:38,010 --> 00:00:39,880 So we're going to go take that sample mean 16 00:00:39,880 --> 00:00:42,800 and we're going to go plus or minus some margin of error. 17 00:00:42,800 --> 00:00:44,510 Now in other videos we have talked about 18 00:00:44,510 --> 00:00:46,690 that we want to use the t distribution here 19 00:00:46,690 --> 00:00:49,850 because we don't want to underestimate the margin of error, 20 00:00:49,850 --> 00:00:52,665 so it's going to be t star times 21 00:00:52,665 --> 00:00:56,200 the sample standard deviation divided by 22 00:00:56,200 --> 00:00:59,340 the square root of our sample size, which in this case 23 00:00:59,340 --> 00:01:02,320 is going to be 15, so the square root of n. 24 00:01:02,320 --> 00:01:03,570 What they're asking us is 25 00:01:03,570 --> 00:01:05,760 what is the appropriate critical value? 26 00:01:05,760 --> 00:01:10,370 What is the t star that we should use in this situation? 27 00:01:10,370 --> 00:01:13,620 We're about to look at, I guess we call it a t table 28 00:01:13,620 --> 00:01:16,890 instead of a z table, but the key thing to realize 29 00:01:16,890 --> 00:01:19,670 is there's one extra variable to take into consideration 30 00:01:19,670 --> 00:01:23,090 when we're looking up the appropriate critical value 31 00:01:23,090 --> 00:01:27,340 on a t table, and that's this notion of degree of freedom. 32 00:01:27,340 --> 00:01:29,670 Sometimes it's abbreviated df. 33 00:01:29,670 --> 00:01:31,970 I'm not going in depth on degrees of freedom. 34 00:01:31,970 --> 00:01:34,720 It's actually a pretty deep concept, 35 00:01:34,720 --> 00:01:36,880 but it's this idea that you actually have a different 36 00:01:36,880 --> 00:01:40,670 t distribution depending on the different sample sizes, 37 00:01:40,670 --> 00:01:42,540 depending on the degrees of freedom, 38 00:01:42,540 --> 00:01:44,990 and your degree of freedom is going to be 39 00:01:44,990 --> 00:01:47,490 your sample size minus one. 40 00:01:47,490 --> 00:01:50,060 In this situation, our degree of freedom is going to be 41 00:01:50,060 --> 00:01:54,100 15 minus one, so in this situation our degree of freedom 42 00:01:54,100 --> 00:01:56,160 is going to be equal to 14. 43 00:01:56,160 --> 00:01:58,450 This isn't the first time that we have seen this. 44 00:01:58,450 --> 00:02:00,530 We talked a little bit about degrees of freedom 45 00:02:00,530 --> 00:02:03,470 when we first talked about sample standard deviations 46 00:02:03,470 --> 00:02:05,210 and how to have an unbiased estimate 47 00:02:05,210 --> 00:02:07,390 for the population standard deviation. 48 00:02:07,390 --> 00:02:09,840 In future videos we'll go into more advanced conversations 49 00:02:09,840 --> 00:02:12,080 about degrees of freedom, but for the purposes 50 00:02:12,080 --> 00:02:14,640 of this example, you need to know that 51 00:02:14,640 --> 00:02:17,380 when you're looking at the t distribution 52 00:02:17,380 --> 00:02:19,640 for a given degree of freedom, your degree of freedom 53 00:02:19,640 --> 00:02:21,490 is based on the sample size and it's going to be 54 00:02:21,490 --> 00:02:23,760 your sample size minus one when we're thinking about 55 00:02:23,760 --> 00:02:26,280 a confidence interval for your mean. 56 00:02:26,280 --> 00:02:29,080 Now let's look at the t table. 57 00:02:29,080 --> 00:02:32,005 We want a 98% confidence interval 58 00:02:32,005 --> 00:02:35,893 and we want a degree of freedom of 14. 59 00:02:36,890 --> 00:02:40,010 Let's get our t table out, and I actually 60 00:02:40,010 --> 00:02:41,940 copied and pasted this bottom part and moved it up 61 00:02:41,940 --> 00:02:43,650 so you could see the whole thing here. 62 00:02:43,650 --> 00:02:45,300 What's useful about this t table 63 00:02:45,300 --> 00:02:47,300 is they actually give our confidence levels 64 00:02:47,300 --> 00:02:50,450 right over here, so if you want a confidence level of 98%, 65 00:02:50,450 --> 00:02:53,020 you're going to look at this column, 66 00:02:53,020 --> 00:02:55,580 you're going to look at this column right over here. 67 00:02:55,580 --> 00:02:59,160 Another way of thinking about a confidence level of 98%, 68 00:02:59,160 --> 00:03:02,620 if you have a confidence level of 98%, 69 00:03:02,620 --> 00:03:07,230 that means you're leaving 1% unfilled in 70 00:03:07,230 --> 00:03:09,680 at either end of the tail, so if you're looking 71 00:03:09,680 --> 00:03:12,780 at your t distribution, everything up to and including 72 00:03:12,780 --> 00:03:16,620 that top 1%, you would look for a tail probability 73 00:03:16,620 --> 00:03:21,450 of 0.01, which is, you can't see right over there. 74 00:03:21,450 --> 00:03:23,040 Let me do it in a slightly brighter color, 75 00:03:23,040 --> 00:03:25,820 which would be that tail probability to the right. 76 00:03:25,820 --> 00:03:27,650 Either way, we're in this column right over here. 77 00:03:27,650 --> 00:03:30,080 We have a confidence level of 98%. 78 00:03:30,080 --> 00:03:32,330 Remember, our degrees of freedom, 79 00:03:32,330 --> 00:03:37,193 our degree of freedom here, we have 14 degrees of freedom, 80 00:03:37,193 --> 00:03:41,613 so we'll look at this row right over here. 81 00:03:41,613 --> 00:03:43,210 So there you have it. 82 00:03:43,210 --> 00:03:46,333 This is our critical t value, 2.624. 83 00:03:48,750 --> 00:03:51,200 So let's just go back here. 84 00:03:51,200 --> 00:03:56,200 2.264 is this choice right over here, and we're done.