On Feb 21, 2009, at 2:14 PM, LuKreme wrote:

> Let's say I am trying to find out what the probability is of something
> happening in a game, and let's say that the mechanics are hidden (so
> no dice, but a computer calculation)
>
> Let's say I do something in the game 78 times, and 19 times I have a
> 'positive' result.
>
> How sure am I that the 'positive result percentage' is 24.35897%?

You can't actually get a point estimate like that. Obviously if you  
try one more time you are going to get either 24.05063291% or  
25.3164557%. What you  can get is a range that is a function of both  
sample size and the risk that you are willing to take that the true  
value falls outside the  range.

In practice this means that you use the "plus four" method for  
computing a confidence interval. Let p* = (positive results + 2)/ 
(trials +4) and then your interval is p* + or - sqrt(p* (1-p*)/(trials  
+ 4)) * Z. You get Z from a table in the  back of a  stat book or from  
a spreadsheet function. For example if I wanted to be 95% sure that my  
interval contained the true value I would type =NORMSINV(0.975) into  
Excel and  get a value of 1.959963985. If I was willing to live with  
90% confidence I'd use NORMSINV(0.95) and get 1.644853627. The  
variable is always (1 - half chance of the error I'm willing to  
accept) because I want a symmetric estimate with the  chance of  
overestimating = the chance of underestimating.

HTH.
---
Neither a man nor a crowd nor a nation can be trusted to act humanely  
or to think sanely under the influence of a great fear.

-Bertrand Russell, philosopher, mathematician, author, Nobel laureate  
(1872-1970)


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