Point Estimate and Interval Estimate

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FOURTH

QUARTER
STATISTICS AND PROBABILITY
ESTIMATION
OF
POPULATION
PARAMETERS
LEARNING COMPETENCIES:
■ illustrate point and interval estimations of the
population parameter;
■ determine the difference between point and interval
estimation;
■ identify point estimator in the population mean;
■ compute for the point estimate of the population mean;
■ identify the appropriate form of the confidence interval
estimator for the population mean when
T
INTRODUCTION:
HEIGH T TT
In a group of Senior High
School students the sample height
were gathered from 50 randomly
selected Grade 11 students. Do you
T
think the mean of this random
sample from Grade 11 students to
be exact is equal with the
population mean of 153
centimeters? If the sample mean is
greater than 153 centimeters, does
it mean that selected Grade11
students are taller than the rest of
the enrolled Grade 11 students?
THEORY OF
STATISTICAL
INFERENCE
ESTIMATION OF POPULATION
PARAMETERS
THEORY OF STATISTICAL INFERENCE
The primary goal of
INFERENTIAL STATISTICS is to
use the information in the sample
data to make better understanding
and increase the knowledge of the
given sample population.
THEORY OF STATISTICAL INFERENCE

ESTIMATION TESTING
OF
POPULATION HYPOTHE
PARAMETERS SIS
ESTIMATION OF POPULATION PARAMETERS

POINT INTERVAL
ESTIMATE ESTIMATE
Point estimate for a
parameter is a single
number designed to
estimate a quantitative
POINT parameter
population.
of
It
a
is

ESTIMAT usually the value which


corresponds to sample
statistic. Since x is
E statistic
estimate
then
varies
point
from
sample to sample.
■ It is the values which serve as an
interval boundary in variable x and
used to estimate the population
parameter. These values are
calculated from the sample and used
as the basis for the estimation.

INTERVAL
■ Interval estimation involves certain
level of confidence (1-α). This is
the proportion of all interval
estimates that include the values

ESTIMAT
being estimated. This is the
calculated range from the point
estimate.

E
– Level of confidence (1-α). It is
the probability that determine
the interval and contained the
parameter. It is also the range
of the values from sample
statistic and the specified
confidence level. The common
confidence interval are 90%,95%
or 99%.
EXAMPLE
The monthly salary of Call Center Agents is reflected
below. What is their monthly average income? If Allan was
included in the list and earned Php32,250.00, is he
included in the average income bracket?
Solution:
When the data computed for the mean, the
average is Php30,007.14.
Allan’s salary is included in the average
income bracket because it is closer to the
amount of Php30,007.14. However, the level
of confidence should be included to determine
the confidence interval.
CONFIDENCE
INTERVAL
ESTIMATOR
A group of numbers
that specified
degree of assurance
that value of the
parameter was
CONFIDENC captured the
confidence interval
E INTERVAL and allows to
ESTIMATOR estimate the unknown
parameter µ. It also
includes margin of
error that indicate
better estimation
using Z-score.
TABLE OF Z-
VALUES FOR
CONFIDENC
E INTERVAL
(CONFIDENCE
COEFFICIENTS)
FORMULA FOR DETERMINING
CONFIDENCE INTERVAL
■  

Where ; - POINT ESTIMATE OR SAMPLE MEAN

E – MARGIN ERROR (
() = CONFIDENCE COEEFICIENT
STANDARD ERROR OF THE MEAN OR THE STANDARD DEVIATION
OF THE SAMPLING DISTRIBUTION OF THE SAMPLE MEANS
= LOWER CONFIDENCE LIMIT
= UPPER CONFIDENCE LIMIT
FORMULA FOR DETERMINING
CONFIDENCE INTERVAL
■  
𝝈 𝝈
𝑿
( )
´ −( 𝒁 ∝/ 𝟐 ¿
√𝒏
´ +( 𝒁 ∝/ 𝟐 ¿
<𝝁<𝑿
( )
√𝒏
STEPS IN CONSTRUCTING THE
CONFIDENCE INTERVAL
1. Determine the contents of confidence interval; 
– Check the assumption
– Find out the formula for probability
distributions
– State the level of confidence.
2. Write down the sample information.
3. Specify the confidence interval. 
– confidence coefficient,
– maximum error of estimate,
– lower and upper confidence limits.
4. Check the result
EXAMPLE
HOW DOES THE AVERAGE GRADE 11 STUDENT
COMMUTE TO ABC SCHOOL THROUGH PUBLIC
UTILITY VEHICLE (PUV), WHEN A RANDOM
SAMPLE OF 100 STUDENTS WAS OBTAINED? THE
MEAN WAS 10.22 KILOMETER WHEREIN MOST
OF THEM TRAVELED 25KM AND ONLY FEW ARE
NOT 25KM. ESTIMATE THE MEAN OF
COMMUTING STUDENTS FOR;
1. POINT ESTIMATE  
2. A 95% CONFIDENCE INTERVAL WITH = 6
KM.
SOLUTION: (1)
HOW DOES THE AVERAGE GRADE 11 STUDENT
COMMUTE TO ABC SCHOOL THROUGH PUBLIC
UTILITY VEHICLE (PUV), WHEN A RANDOM
SAMPLE OF 100 STUDENTS WAS OBTAINED? THE
MEAN WAS 10.22 KILOMETER WHEREIN MOST
OF THEM TRAVELED 25KM AND ONLY FEW ARE
NOT 25KM. ESTIMATE THE MEAN OF
COMMUTING STUDENTS FOR;

1. POINT ESTIMATE – 10.22 KM


 
SOLUTION: (2) a 95% confidence interval with = 6 km.
10.22 6 1.96

RESULT:  
Therefore, it reveals that 9.04 to 11.40 is the 95% confidence interval for
parameter µ. The mean one-way distance is between 9.04 and 11.40 km.
EXAMPLE
THE APTITUDE TEST WAS
ADMINISTERED TO RANDOM
SAMPLE OF 120 SHS STUDENTS.
THE SAMPLE MEAN WAS
104.2 WITH STANDARD DEVIATION
OF 12. FIND 90% CONFIDENCE
INTERVAL.
SOLUTION: a 90% confidence interval
104.2 1.645

RESULT:  
Therefore, it reveals that 102.40 to 106 is the 90% confidence interval for
parameter µ. The mean for aptitude test is between 102.4 and 106.
THANK YOU FOR
LISTENING! 

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