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SP Lessons-Chapter-4

The document discusses statistical inference, focusing on estimation and hypothesis testing. It explains point and interval estimates, including how to compute them and the importance of unbiased estimates. Additionally, it covers confidence intervals and their significance in estimating population parameters.

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11 views37 pages

SP Lessons-Chapter-4

The document discusses statistical inference, focusing on estimation and hypothesis testing. It explains point and interval estimates, including how to compute them and the importance of unbiased estimates. Additionally, it covers confidence intervals and their significance in estimating population parameters.

Uploaded by

nherelio
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Estimation of

Parameters
Statistical Inference
The processes by which conclusions about
parameters in the population are made
based on sample data.

Two Areas of Statistical Inference


Estimation
Hypothesis Testing
Estimate
An estimate is a value or a range of
values that approximate a parameter. It
is based on sample statistics computed
from sample data.

Estimation
It is the process of determining
parameter values.
Point Estimate
It is a specific numerical value of a
population parameter. The sample mean
x̄ is the best point estimate of the
population mean.
Interval Estimate
It is range of values that may contain
the parameter of a population.
A good method of estimating a
population parameter is described as
one where the estimates from many
samples are equal to the true
population parameter. In such case, we
can say that the sample statistic is an
unbiased estimate. If across many
samples, a sample statistic departs
from the true population value, then
the estimate is said to be biased.
Computing the
Point Estimate of a
Population Mean
Me
an
of t
he
me
ans
EXAMPLE Mr. Santiago’s company
sells bottled coconut juice.
Find the point He claims that a bottle
estimate of the
population
contains 500ml of such
parameter μ. juice. A consumer group
wanted to know if his claim
is true. They took six
random samples of 10
such bottles and obtained
the capacity, in ml, of each
bottle. The result is shown
as follows.
For the mean of row 1,
For the mean of column 1,
Find the point estimate of
TRY THIS! the population parameter μ.

Grades in Statistics
Understanding
Confidence Interval
Estimates for the
Population Mean
Point Estimate
It is a specific numerical value of a
population parameter. The sample mean
x̄ is the best point estimate of the
population mean.
Interval Estimate
It is range of values that may contain
the parameter of a population.
Interval Estimate
An interval estimate, called a
confidence interval, is a range of values that is
used to estimate a parameter. This estimate
may or may not contain the true
parameter value.
The confidence level of an interval estimate of
a parameter is the probability that the
interval estimate contains the parameter. It
describes what percentage of intervals from
many different samples contain the unknown
population parameter.
z ± 1 = P(z) = 0.6826 = 68.26%
z ± 2 = P(z) = 0.9544 = 95.44%
z ± 3 = P(z) = 0.9974 = 99.74%
Three commonly used
confidence levels:

1 2 3

90% 95% 99%


Alpha is also known
as the level of
significance/error.
This represents the
probability of
obtaining your
α
results due to
chance.
Note:
The general formula for confidence
intervals for large samples is:
The general formula for confidence
intervals for large samples is:
lower confidence or lower limit

upper confidence or upper limit

E= margin of error
EXAMPLE

The confidence coefficient is 1.96 ,

Find the lower and upper


confidence limits.
TRY THIS!
Hours Spent on Watching Television

A researcher wants to estimate the number of hours


that 5-year old children spend watching television. A
sample of 50 five-year old children was observed
have a mean viewing time of 3 hours.
The population is normally distributed with a
population standard deviation of 0.5 hours, find:
a. the best point estimate of the population mean
b. the 95% confidence interval of the population mean
Results:
Thus, we can say with 95%
confidence that the interval
between 2.86 hours and 3.14
hours contain the population
mean based on 80 five-year old
children’s TV viewing time.
Confidence Intervals
for the Population
Mean when σ is
Unknown
df
Degrees of
freedom are
the number of
independent
values that a Degrees of Freedom
statistical
analysis can Formula:
estimate.
df = n - 1
The formula for computing the confidence
interval using the t-distribution is:

t-values also called as critical values.


Find the degrees of freedom and confidence
coefficients for each of the following:
Find E given the following: E=
EXAMPLE Mean Age of Entering Math Majors

An admission officer of an educational


institution wants to know the mean of age of
all entering mathematics majors. He
computed a mean age of 18 years and a
standard deviation of 1.2 years on a
random sample of 25 entering mathematics
majors purposedly coming from a normally
distributed population. With 99% confidence,
find the point estimate and the interval
estimate of the population mean.
Results:
Thus, we can say with 99%
confidence that the interval
between 17.33 and 18.67 contains
the true mean age of the
population of entering
mathematics majors based on the
sample of 25.
TRY THIS!
The mean age of youth volunteers in
a community project is 17.5 years
with a standard deviation of 2 years.
If the sample comes from an
approximately normal distribution,
what are the point and interval
estimates of the population mean?
Use 99% confidence level.
TRY THIS!
The average weight of 25
chocolate bars selected from a
normally distributed population
is 200g with a standard
deviation of 10g. Find the point
and the interval estimates using
95% confidence level.
TRY THIS!
The mean scores of a random sample
of 17 students who took a special test
is 83.5. If the standard deviation of the
scores is 4.1, and the sample comes
from an approximately normal
population, find the point and interval
estimates of the population mean
adopting a confidence level of 95%

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