0:00 / 0:00

Matched Pairs Confidence Interval for Differences in Dependent Means

We don't know what the actual value of Dˉ\bar D (or µdµ_d) is, but we can provide a reasonable range by constructing a confidence interval for the population average of the differences by using dˉ\bar d (or xˉdx̄_d) as a point estimate .
  • Confidence level C=1αC=1-α
d±t(sdn)\boxed{\overline{d} \pm t^* \bigg(\dfrac{s_d}{\sqrt{n}}\bigg)}
where,
  • tt^* is based on df=n1df = n-1
  • nn = number of pairs


Wize Concept
If the confidence interval does not contain "0", then there is evidence of a difference in matched pairs.
If the interval contains "0", then there is no evidence of a difference in matched pairs.


PAGE BREAK
Example

Hank's Auto Mall sells used cars and got them all appraised by Auto Corp. He hired another car appraisal company, Vroom Car Appraisal, to get a second opinion on those same cars. Hank wants to see if there is a significant difference between the appraisal values for each of his cars. Is there evidence of that? Eight cars were randomly sampled. Values are in $,000's:
Auto CorpVroomDifferencex1x2di=x1x2CAR 151587CAR 275669CAR 3876225CAR 4705713CAR 549512CAR 6827111CAR 7604218CAR 8604713Meanx1=66.75x2=56.75d=10Standard Deviations1=14.02s2=9.74sd=10.3\begin{array}{|l|c|c|c|}\hline & \text{Auto Corp} & \text{Vroom} & \text{Difference}\\ &x_1 & x_2 & d_i=x_1-x_2\\\hline \text{CAR 1} & 51 & 58 & -7\\\hline \text{CAR 2} & 75 & 66 & 9\\\hline \text{CAR 3} & 87 & 62 & 25\\\hline \text{CAR 4} & 70 & 57 & 13\\\hline \text{CAR 5} & 49 & 51 & -2\\\hline \text{CAR 6} & 82 & 71 & 11\\\hline \text{CAR 7} & 60 & 42 & 18\\\hline \text{CAR 8} & 60 & 47 & 13\\\hline \text{Mean} & \overline{x}_1=66.75 & \overline{x}_2=56.75 & \overline{d}=10\\\hline \text{Standard Deviation} & s_1=14.02 & s_2=9.74 & s_d=10.3\\\hline \end{array}

Construct a 95% confidence interval for the difference in population means.

A 95% confidence interval for the previous example is:

t=2.365t^* = 2.365
10±2.365(10.38)10\pm2.365\bigg(\dfrac{10.3}{\sqrt{8}}\bigg)

10±8.61210\pm8.612

[1.388,18.612][1.388, 18.612]
We are 95% confident that the average difference in appraisal value is between $1,388 and $18,612.
It does not contain "0", so there is evidence of a difference in appraisal value.

Practice: Confidence Interval for Matched Pairs

A random sample of 29 students were drawn from a large class. Is there evidence that their performances on the midterm and on the final exam differ, on average? Assume the differences of matched pairs come from a population that is normal.



(i) Construct a 95% confidence interval. Enter your answers below with at least 2 decimal places. (Let the point estimate be negative.)
Extra Practice