CHAPTER 10 Having Confidence in Your Results 133

In some situations, you may want all the failures to be on one side. In other words,

you want a one-sided confidence limit. Cars that run on gasoline may have a dec-

laration by their manufacturer that they go an average distance of at least 40 miles

per gallon (mpg). If you were to test this by keeping track of distance traveled and

gas usage on a sample of car trips, you may only be concerned if the average was

below the lower confidence limit, but not care if it was above the upper confidence

limit. This makes the boundary on one side infinite (which would really save you

money on gas!). For example, from the results of your study, you could have an

observed value of 45 mpg, with a one-sided confidence interval that goes from

42 mpg to plus infinity mpg!

In biostatistics, it is traditional to always use two-way CIs rather than one-way

CIs, as these are seen as most conservative.

Calculating Confidence Intervals

Although an SE and a CI are different calculations intended to express different

information, they are related in that the SE is used in the CI calculation. SEs and

CIs are calculated using different formulas (depending on the type of sample sta-

tistic for which you are calculating the SE and CI). In the following sections, we

describe methods of calculating SEs and CIs for commonly used sample

statistics.

Before you begin: Formulas for confidence

limits in large samples

Most of the methods we describe in the following sections are based on the

assumption that your sample statistic has a sampling distribution that’s approxi-

mately normal (Chapter 3 covers sampling distributions). There are strong theo-

retical reasons to assume a normal or nearly normal sampling distribution if you

draw a large enough samples.

For any normally distributed sample statistic, the lower and upper confidence

limits can be calculated from the observed value of the statistic (V) and standard

error (SE) of the statistic:

CL

V

k

SE

L

CL

V

k

SE

U