STATISTICS 11: Point and Interval Estimates

def of terms

Statistical Inference

It is defined as making conclusions or generalizations about the population based on the study of samples.

• Composed of estimating the population parameter & hypothesis testing.

Point Estimate

A single value that estimates the population parameter, such as x̄ as an estimate for μ.

Interval Estimate of a Population Parameter

A range of values that is likely to contain the true parameter value. The endpoints of the interval are called limits that depend on the value of the sample statistic and its sampling distribution.

Confidence Interval

A range of values that estimates a population parameter.

• This is given as: Point estimate ± Margin of Error

Confidence Level

It is associated with a confidence interval and it states how much confidence we have that an interval contains the true parameter.

• Denoted by (1 - α)100%

Confidence Coefficient

The probability that an interval contains the population parameter.

• Denoted by 1 - α

Margin of Error

It is the value subtracted from and added to x̄ to obtain a confidence level for μ.

• E = z_α/2(σ / √n)