Professional Documents
Culture Documents
Point and Interval Estimation
Point and Interval Estimation
Population Variance (σ 2
¿ Sample Variance ( s )
2
√
σ σ N −n
SE ( x ¿ = √ n SE ( x ¿ = √n N −1
√ N −n
N −1
= Finite Population Parameter Factor
σ= s √ n
n−1
Given:
Population (N) = 80
Sample (n) = 25
Solution:
Standard Error of Sample Mean without replacement
SE ( x ¿ = σ
√n √N −n
N −1
SE ( x ¿ = 5
√
80−25
√ 25 80−1
SE ( x ¿ = 5 55
5 79√
SE ( x ¿ = 0.83
Q. A random sample of size 5 is taken from the
population containing 100 units. If the sample
observations are 10, 12, 13, 7, 18. Find the estimate of
the standard error of sample mean.
Solution:
2
x ( x−x ) (x−x )
10 -2 4
12 0 0
13 1 1
7 -5 25
18 6 36
∑ (x−x )2 =66
Mean = (10 + 12 + 13 + 7 + 18) / 5 = 12
∑
√ √
2
(x−x ) 66
S.D = n
= 5
= 3.63
σ= s √ n
n−1
σ= 3.63 √ 5
5−1
σ= 3.63 √ 5
4
σ = 4.06
SE ( x ¿ = σ
√n √ N −n
N −1
SE ( x ¿ = 4.06 100−5
√ 5 100−1 √
SE ( x ¿ = 4.06 95
√ 5 99 √
SE ( x ¿ = 1.78
SE ( p ¿ = √ pq
n
SE ( p ¿ = √ √
pq
n
N−n
N −1
Solution:
q=1–p
q = 1 – 0.075
q = 0.925
SE ( p ¿ = √ pq
n
SE ( p ¿ =√ 0.075∗0.925
200
SE ( p ¿ = 0.0186
Q. A factory produces 60000 pairs of shoes on a daily
basis. From a sample of 600 pairs, 3% was found to be
inferior quality. Estimate the standard error of
proportion.
Solution:
Population (N) = 60000
Sample (n) = 600
3
p = 100 = 0.3
q=1–p
q = 1 – 0.3
q = 0.7
Standard Error of Proportion without replacement:
SE ( p ¿ = √ √ pq
n
N−n
N −1
SE ( p ¿ =√ √
0.3∗0.7 60000−600
600 60000−1
SE ( p ¿ =√ √ 0.21 59400
600 59999
SE ( p ¿ = 0.0069
Estimate:
1. Point Estimate
2. Interval Estimate
Point Estimate: It provides single value that is used to
approximate an unknown population parameter.
σ= s √ n
n−1
n
σ
2
=s. 2
n−1
Interval Estimate:
Steps:
Step1: Compute Sample Parameter (Mean and
Proportion)
Step 2. Calculate Standard Error
Step 3. Find Interval as ¿ - Z SE, x + Z SE]
α α
Note**** Value of Z
Confidence Interval Value of Z α
90% 1.64
95% 1.96
98% 2.33
99% 2.58
99.73% 3.00
Confidence Interval:
How much confidence you are that error will not happen
90% means there will be no error
10% means there will be error
Chances of error is also called as level of significance or
degree of freedom (kitne error ke liye hum tayar hai)
Sample Variance ( s ) = 49
2
σ= s√ n
n−1
σ =7√ 15
15−1
σ =7√ 15
14
σ √ 15 7
SE = √ n = 7. √14∗ √15 = √14 1.8708
=¿
= ¿ - 2.58∗1.8708 , 55 + 2.58∗1.8708]
= ¿ , 59.8246]
2.5
SE = √ 81 = 0.278
= ¿ , 23.64774 ]
n = ¿, Where E is Estimated z2 pq
n= E2
, Where E is Estimated
Error Error
σ = 1.08
Z = 2.58
E = 0.18
Size of Sample (n) = ¿
n=¿
n = 239.6
n = 240
p = 20/100 = 0.2
q = 1 – p = 1 – 0.2 = 0.8
E = 0.05
Z = 1.96
2
z pq
Size of Sample (n) = E2
2
1.96 ∗0.2∗0.8
n= 0.05 2
0.614656
n= 0.0025
n = 245.86
n = 246