Mathematical Background: Confidence Intervals
Confidence intervals provide a range of values that likely contain the population parameter of interest (like the true population mean). This statistical indicator describes the precision and stability of your sample findings.
Z-Intervals vs. T-Intervals
When estimating intervals, the choice of probability distribution depends on standard deviation conditions:
- Z-Interval: Relies on the Standard Normal distribution. It assumes that the true population standard deviation (σ) is known beforehand.
- T-Interval: Relies on Student's T-distribution. It accounts for extra uncertainty because the population standard deviation is unknown, substituting it with the sample standard deviation (s). The shape of the T-distribution adjusts based on the degrees of freedom (df = n - 1), exhibiting fatter tails for small sample sizes.