Theorem
Let X1 , X2 , . . . , Xn be a random sample from a normal distribution with mean and variance 2 , where and are unknown. The random variable X T = S/ n has a probability distribution called a t distribution with n 1 degrees of freedom (df). Here X is the sample mean and S is the sample standard deviation.
s x + t,n1 n and replacing + by in this latter expression gives a lower condence bound for , both with condence level 100(1 )%.
Proposition
A prediction interval (PI) for a single observation to be selected from a normal population distribution is x t ,n1 s 2 The prediction level is 100(1 )%. 1+ 1 n
Proposition
A tolerance interval for capturing at least k% of the values in a normal population distribution with a condence level 95%has the form x (tolerance critical value) s
Proposition
A tolerance interval for capturing at least k% of the values in a normal population distribution with a condence level 95%has the form x (tolerance critical value) s The tolerance critical values for k = 90, 95, and 99 in combination with various sample sizes are given in Appendix Table A.6.
Theorem
Let X1 , X2 , . . . , Xn be a random sample from a distribution with mean and variance 2 . Then the random variable (n 1)S 2 = 2 (Xi X )2 2
Proposition
A 100(1 )% condence interval for the variance 2 of a normal population has lower limit
(n 1)s 2 /2 ,n1 2
A condence interval for has lower and upper limits that are the square roots of the corresponding limits in the interval for 2 .