module 4

Two main branches of Inferential Statistics

Estimation, Hypothesis Testing

Two types of Estimation

Interval Estimation (e.g., Confidence Intervals), Point Estimation (A single value statistic).

Point Estimate

A specific value of a statistic calculated from a sample to estimate a parameter of the population.

Method of Moments (MOM)

A method that uses "moments" (averages of powers) of the data. It equates sample moments to population moments to solve for parameters.

Maximum Likelihood Estimation (MLE)

A method that finds the parameter values that maximize the likelihood of observing the specific sample data collected.

Which estimation method is useful for both continuous and discrete variables?

Maximum Likelihood Estimation (MLE).

Bernoulli Trial

An experiment with ONLY two outcomes (success/failure). Used when calculating Sample Proportion.

Sample Proportion is used to estimate…?

The proportion of "successes" in a population (qualitative data).

Sample Mean (x̄) is used to estimate…?

The population mean (μ).

Sample Variance Formula

s^2 = \frac{\sum (x - \bar{x})^2}{n - 1}

Sample Standard Deviation (s) is used to estimate…?

The population standard deviation (σ).

Inequality of Estimators

Estimators (from a sample) generally do not equal the true values of the parameters (from the population).

Variability of Estimators

Estimates vary from one sample to another.

Sampling Distribution

The collection (distribution) of all estimates from all possible samples of size n taken from a population.