ESTIMATION AND CONFIDENCE LEVEL

Statistical Inference

• It is making conclusion or generalization about the population based on the study of samples

• It is composed of estimating the population parameter and hypothesis testing.

Interval Estimate

• It is a single value that estimates the population parameter

• It is a range or interval used to estimate the population parameter.

Confidence Interval

It is an interval estimate with an associated confidence that it contains the unknown parameter.

Confidence Coefficient

It is the probability that an interval contains the population parameter.

Confidence Level

It is part of all possible samples(in percent) taken from the same population that can be expected to include the true population parameter

• It is the other name for interval estimate

Margin of Error

It refers to the maximum likely difference between sample mean and the real population value.

Area

It refers to space under the curve which is equal to one

Bell-shaped

The shape of the normal curve

Limits

The endpoints of the interval

The formula for Z-score when the population variance or standard deviation is known.