Learning Objectives
Learning Objectives
Learning Objectives
Objectives
Hypothesis Testing
Estimation of
Parameters
Can you think of a situation
where the
Process of Estimation
is important?
ESTIMATION
The process used to calculate the
proposed values for parameters by using
only a random sample from the
population.
Estimator: Any statistic whose value is used to
estimate an unknown parameter.
Properties
of a
Good Estimator
Unbiasedness Efficiency
5 months 4 to 6 months
Summarizes the sample by a single number that is an estimate of the population parameter.
Interval of values that predicts where the true population parameter belongs.
▪ Confidence Level: The degree of certainty that the true population parameter falls within the
constructed confidence interval.
Common choices for confidence level: 80% 90% 95% 99%
Note: If your interval estimate is made using an 80 % confidence level, it indicates that your estimate is correct 80 % of the
time.
POINT AND INTERVAL ESTIMATORS OF A PARAMETER
Situation 2:
Confidence coefficients:
•The middle 99 % is the proportion of the regions above z1 = -2.58 and below z2 = 2.58
•The middle 95 % is the proportion of the regions above z1 = -1.96 and below z2 = 1.96
•The middle 90 % is the proportion of the regions above z1 = -1.65 and below z2 = 1.65
Interval Estimation of the population mean
𝜎 𝜎
𝑋ത − 𝑧𝑎 < 𝜇 < 𝑋ത + 𝑧𝑎
2 𝑛 2 𝑛
Example:
𝜎 𝜎
𝑋ത − 𝑧𝑎 < 𝜇 < 𝑋ത + 𝑧𝑎
2 𝑛 2 𝑛
Example:
Example: