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Learning Objectives

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Learning

Objectives

1. Define inferential statistics


2. Discuss the properties of a good estimator
3. Illustrate point and interval estimation
4. Identify a point estimator for the population mean
5. Identify the appropriate form of the confidence interval estimator of the population mean
when:
a. population variance is known
b. central limit theorem is to be used
c. population variance is unknown and n is small
6. Illustrate the t-distribution
7. Construct the t-distribution
8. Identify regions under t-distribution corresponding to t-values
9. Solve problems involving confidence interval estimation of the population mean
10. Draw a conclusion about the population mean based on its confidence interval estimate.
Branch of statistics that pertains to the process of drawing
and making decisions concerning a given population based
on the data obtained from the sample.
Estimations

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

An estimate is unbiased An efficient estimator


when the expectation of is the one that gives
all estimates taken from
the sample with size n is
Consistency the smallest variance.

equal to the parameter


Consistency is achieved
being estimated. when the estimate
produced a relatively
smaller standard error.
This may be done by
increasing the sample
used to estimate the
parameter.
Types of Estimates
POINT ESTIMATES INTERVAL ESTIMATES

A single value that best determines the


Range of values within which the
proposed parameter value of the
parameter value possibly falls
population
Suppose you work for a manufacturer of
Using a sample of
light bulbs and you want to predict the
100 light bulbs,
average life span of all the light bulbs you you claim that the
produced. light bulbs last
for….

5 months 4 to 6 months

Point Estimator Interval Estimator


POINT ESTIMATOR OF A PARAMETER

Summarizes the sample by a single number that is an estimate of the population parameter.

Example: A researcher wants to estimate the


average grade of all mathematics students in a What can you say about the point
certain school. He determined the grades of estimate of the population mean? Is it
five students as follows: 76 , 82, 88, 90 and 96. representing the entire population well?
Estimate the average mathematics grade of all
the students of their grades.
Note: A population parameter is estimated simply with its
corresponding sample statistic
INTERVAL ESTIMATOR OF A PARAMETER

Interval of values that predicts where the true population parameter belongs.

Important terms to remember:


▪ Length of a confidence interval: The difference between the lower limit from the upper limit of the
interval.

▪ 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 1: It can be observed that:


a. The point estimate for the population
A professor of a renowned university mean is _______
conducted a research to determine the IQ of b. The degree of confidence is ______ %
c. The interval estimate for the population
the students in their university. The report
mean is __________.
shows that the chosen sample of students d. The length of the interval estimate for the
have a mean of 110 with a standard deviation population mean is ________.
e. The margin of error is _______%.
of 8. Moreover, the population mean is
f. What is the lower limit and upper limit of the
expected to be in between 107.9 to 112.1 at
interval?
99 % confidence interval.
POINT AND INTERVAL ESTIMATORS OF A PARAMETER

Situation 2:

A local newspaper named Balita Na conducts It can be observed that:


a. The point estimate for the population
an election survey and reports that the
proportion is _______
independent candidate will receive 35 % of b. The degree of confidence is ______ %
the vote. The newspaper states that the c. The interval estimate for the population
proportion is __________.
survey had a 5 % margin of error. These d. The length of the interval estimate for the
finding results in the following confidence population proportion is ________.
interval: the independent candidate will e. The margin of error is ________.

receive between 30% and 40% of the vote.


How do we set up the interval
estimators of the population
mean?
More on interval estimator of
population mean!
▪ 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%

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

Case 1: Estimating the population mean given the population


variance

Case 2: Estimating the population mean using the central limit


theorem

Case 3: Estimating the population mean with unknown variance using


a small sample.
Interval Estimation of the population mean
Case 1: Estimating the population mean given the population variance

𝜎 𝜎
𝑋ത − 𝑧𝑎 < 𝜇 < 𝑋ത + 𝑧𝑎
2 𝑛 2 𝑛
Example:

Consider a random sample of 36 items


taken from a normally distributed
population with a sample mean of 211.
Compute a 95% confidence interval for
𝜇 if the population standard deviation is
23. The population mean will have a 95 % chance to fall
between 203.49 to 218.51
Interval Estimation of the population mean
Case 1: Estimating the population mean given the population variance

𝜎 𝜎
𝑋ത − 𝑧𝑎 < 𝜇 < 𝑋ത + 𝑧𝑎
2 𝑛 2 𝑛
Example:

Suppose that the systolic blood pressures of a


certain population are normally distributed with a
standard deviation of 8. A sample size of 25 is
taken from the population. The average of the
systolic blood pressure of these 25 individuals is
found to be 122. Find the 99 % confidence
interval of the average systolic pressure for all
The population mean will have a 99 % chance to fall
members of the population between 117.88 and 126.12.
Interval Estimation of the population mean
Case 2: Estimating the population mean using the Central Limit Theorem
𝜎 𝜎
𝑋ത − 𝑧𝑎 < 𝜇 < 𝑋ത + 𝑧𝑎
2 𝑛 2 𝑛
REGARDLESS IF THE POPULATION IS NORMAL OR NOT, AS THE SAMPLE SIZE n GETS LARGER, THE SHAPE OF THE
DISTRIBUTION OF THE SAMPLE MEAN WILL SIMPLY APPROACH A NORMAL DISTRIBUTION

Example:

Kim wants to estimate the average age of


teachers in certain town with known standard
deviation of 4. If she surveyed a sample of 100
teachers and determined a sample mean of 35,
compute the 95 % confidence interval for the
average age of teachers. At 95 % confidence, the mean age of the teachers in
the town is estimated to fall between 34.22 and 35.78.
What if the shape of the distribution is
unknown and the sample size is small? Or
the population variance is unknown?

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