Question: (Computer simulation exercise)

The confidence interval formula given in section 8.2 of the text was obtained assuming that we are sampling from a normal distribution. Will it still work if we apply it to observations sample from a skewed distribution with 4 degrees of freedom is a skewed distribution with population mean = 4.

Formula from 8.2 of the text: sample mean +- ( minus sign underneath the plus sign) t standard errors

Generate 500 observations from a chi-square distribution with 4 degrees of freedom and plot a histogram for the data.(This will show you that the distribution is indeed very skewed.)

Take 100 samples each of size 9. For each sample, obtain a 95% confidence interval for the true mean. What proportion of your intervals contains the true mean?

Repeat (b) using samples of size 25.

Repeat (a) and (b) using 1000 samples rather than just 100 samples.

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Solution: The downloadable solution consists of 19 pages
Deliverable: Word Document