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Point Estimation An Introduction

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Point Estimation An Introduction

Uploaded by

sunnycharan135
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Point Estimation: An

Introduction
Welcome to this presentation on Point Estimation, a fundamental
concept in statistical inference. We'll delve into the key definitions,
properties, and methods used for estimating unknown population
parameters using sample data.
Point Estimator Definitions
What is a Point Estimator? Example: Estimating Mean

A point estimator is a statistic (a function of the data) that Suppose you want to estimate the average height of all
provides a single-value estimate of an unknown college students. You could take a sample of students and
population parameter. It attempts to "guess" the true use the sample mean as a point estimator for the
value based on the observed data. population mean.
Properties of Point
Estimators
1 Unbiasedness 2 Efficiency
An unbiased estimator, on An efficient estimator has
average, gives the correct the smallest possible
value of the population variance among all
parameter. unbiased estimators.

3 Consistency
A consistent estimator gets closer to the true value of the
population parameter as the sample size increases.
Unbiasedness
Definition Example
An estimator is unbiased if its The sample mean is an
expected value is equal to unbiased estimator of the
the true value of the population mean. In the long
parameter. run, the average of many
sample means will equal the
true population mean.
Efficiency

Target Precision Lower Variance


An efficient estimator minimizes the variability of the Estimators with lower variance are considered more
estimates around the true parameter. efficient because they provide more precise estimates of
the true value.
Consistency
1 Large Sample Behavior
As the sample size increases, a consistent estimator
converges to the true population parameter.

2 Reducing Error
With larger samples, the estimator becomes more
accurate and the potential error associated with the
estimate decreases.
Point Estimation Methods
Method of Moments
This method uses sample moments to estimate
population parameters.

Maximum Likelihood Estimation


This method finds the parameter values that maximize
the probability of observing the given data.
Method of Moments

Sample Moments
1 Calculate sample statistics like mean, variance, and skewness.

Population Moments
2 Equate sample moments to their corresponding population
counterparts.

Solve for Parameters


3 Solve the resulting equations to obtain estimates for the
population parameters.
Maximum Likelihood Estimation
Likelihood Function
1
Define a function that represents the probability of observing the data given the parameter values.

Maximize Likelihood
2
Find the parameter values that maximize the likelihood function.

Parameter Estimates
3 The parameter values that maximize the likelihood
function are the maximum likelihood estimates.
Advantages and Limitations
of Point Estimation

1 2
Simplicity Wide Applicability
Provides a straightforward estimate Can be applied to a wide range of
for population parameters. statistical problems.

3 4
Uncertainty Bias
Does not provide information about Some point estimators may be
the precision of the estimate. biased, leading to inaccurate
estimates.

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