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Lecture 10 - Estimation (100%) - With Notesx1

The document covers large sample estimation of a population mean, including definitions of estimation, point and interval estimation, and the computation of confidence intervals. It explains the use of the sample mean and variance as unbiased estimators, the application of the Central Limit Theorem, and the significance of the t-distribution for small samples. Additionally, it provides methods for determining the minimum sample size required for estimating a population mean within specified criteria.

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Liaw Junwei
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3 views19 pages

Lecture 10 - Estimation (100%) - With Notesx1

The document covers large sample estimation of a population mean, including definitions of estimation, point and interval estimation, and the computation of confidence intervals. It explains the use of the sample mean and variance as unbiased estimators, the application of the Central Limit Theorem, and the significance of the t-distribution for small samples. Additionally, it provides methods for determining the minimum sample size required for estimating a population mean within specified criteria.

Uploaded by

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

Large Sample Estimation


of a Population Mean
Learning Objectives
• Define estimation as using sample statistics to infer
population parameters
• Distinguish between point and interval estimation
• Compute the confidence interval for a population
mean
• Estimate the sample size needed to construct a
confidence interval for a population mean or
proportion that meets given criteria
• Familiarize with Student's t-distribution
Point Estimation
We can infer the population parameters mean and
standard deviation by taking a random sample of
size :
Point Estimation
The sample mean

is an unbiased estimator of the population mean .


This means that
Point Estimation
The sample variance
is an unbiased estimator of the population standard
deviation .
This means that
Why sample variance, ?

since from CLT


sample variance
Confidence Intervals
From Central Limit The statistic has
Theorem (CLT), sample standard normal
mean has normal distribution
distribution where is the
population mean, is the
population standard
deviation and is the
sample size.
Confidence Intervals
To compute a confidence Example
interval: If , then
• Choose the significance
level
• confidence level
Confidence Intervals
The critical value is given
by:

and
Confidence Interval

Confidence Interval of is:


Confidence Interval for a
Population Mean (Large Sample)
• If is known

• If is unknown

A sample is considered large when


Example
The quality control department of a factory samples
its bakery product periodically to determine the
amount of fat content. The population is normally
distributed with standard deviation . A random
sample of size is taken, and the sample mean is .
Obtain a confidence interval for the population
mean .
Example
• For a confidence level, the significance level is .
• The z-critical value is given by:

• The confidence interval is:


Student's t-Distribution
The t-distribution is a continuous probability
distribution used for estimating the mean of a
normally distributed population where:
• sample size is small
• population standard deviation is unknown
It was published by English statistician William Sealy
Gosset in 1908. His employer, Guinness Breweries,
required him to publish under a pseudonym, so he
chose "Student".
Student's t-Distribution
Given independent measurements , we define a
random variable:

where and are the sample mean and standard


deviation respectively, and is the population mean.
The t-distribution is (very loosely) the "best" that we
can do not knowing the population standard
deviation . The distribution changes depending on
the degree of freedom, defined as .
Confidence Interval for a
Population Mean (Small Sample)
• If is known

• If is unknown

The population must be normally distributed


A sample is considered small when
Example
The quality control department of a factory samples
its bakery product periodically to determine the
amount of fat content. The population is normally
distributed with unknown standard deviation . A
random sample of size is taken, and the sample
mean is , and the sample standard deviation . Obtain
a confidence interval for the population mean .
Example
• For a confidence level, the significance level is .
• The t-critical value is given by:

• The confidence interval is:


Minimum Sample Size for
Estimating a Population
Mean
The estimated minimum sample size needed to
estimate a population mean to within units at
confidence is
(rounded up)

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