I recently picked up a book by Douglas W. Hubbard, How to Measure Anything
which offers this table that pays for the book itself.
The “Mathless” 90% CI (p139, How to Measure Anything)
| Lower bound: __th smallest
Upper bound: __th largest |
| Sample Size |
nth largest and smallest sample value |
Actual Confidence |
| 5 |
1st |
93.8% |
| 8 |
2nd |
93.0% |
| 11 |
3rd |
93.5% |
| 13 |
4th |
90.8% |
| 16 |
5th |
92.3% |
| 18 |
6th |
90.4% |
| 21 |
7th |
92.2% |
| 23 |
8th |
90.7% |
| 26 |
9th |
92.4% |
| 28 |
10th |
91.3% |
| 30 |
11th |
90.1% |
So what does the table mean and how can it be used?
Suppose you are a drug dealer and you’ve received a 100 packages of 10g marijuana, ready to sell. The suppliers may have tried to rip you off so you need to check. You decide you want to be more than 90% certain that the average weight of each package is actually 100g.
You don’t have the time to hire people on your end to weigh every package, and there are no friendly statisticians willing to calculate sample statistics for you. So what can you do?
With the table above you decide on how many packages you are willing to weight. Suppose you have time to weigh 8 packages and find that they weight 8, 8.9, 9, 9.5, 9.7, 9.9, 10, 10, 10.5, 11, 12g. With a sample size of 11 you only need to look at the 3rd smallest value (9g) and the 3rd largest value (10.5g) to construct a 90% confidence interval (actually 93.5%). Hence a 90% CI of the average weight of the packages is between 9g – 10.5g. You may or may not decide to accept the deal.
What is a 90% confidence interval (CI)? It means using the above table 9 times out of 10 the actual average will between the ‘calculated’ values.
So what if your not a drug dealer? The example in the book is used to measure the average amount of time a group of managers spend on under-performing sales rep. Other examples I can think of include measuring the average amount of time developers spend on bug fixes, and the amount of time employees spend working at home.
The table can construct 90% confidence interval for any kind of sample statistic, with some caveats. The table can construct 90% CI of the median for any distribution. However to use the table to calculate 90% CI’s for averages the distribution has to be symmetric. Which means in the drug dealers case your suppliers are equally likely to give you lighter packages as heavier packages (not super-realistic), but many other things in life are.