Under what situations would you use tc instead of zc when cr
Under what situations would you use tc instead of zc when creating a confidence interval?
Solution
When creating a confidence interval when we are using a sample standard deviation instead of population standard deviation.Basically when standard deviation is not known then we use t critical value and when standard deviation is known we use z critical value
when standard deviation is known then
confidence interval is x bar+- zc sigma/sqrtn
when standard deviation is not known
confidence interval os x bar+- tc *s/sqrtn
