WEEK 1

POINT and INTERVAL

ESTIMATION
 Point Estimation
The process of finding a single value, called point
estimate, from a random sample of the population, to
approximate a population.
 Scenario
1. The sample mean 𝑥ҧ is 45.12 and the population
mean 𝜇 is 46.51.

2. A teacher wanted to determine the average height of

Grade 9 students in their school. What he did was to go to
one of the eight sections in Grade 9 and then took their
heights. He computed for the mean height of the students
and got 165 cm.
 EXAMPLE

Consider the population consisting of values (6, 2, 8, 9, 3).

Find the population mean.
Without replacement from the population
Observation x Sample Mean Sample Mean Sample Mean
1 6 (6, 2) (6, 2, 8) (6, 2, 8, 9)
2 2
(6, 8) (6, 2, 9) (6, 2, 8, 3)
3 8
(6, 9) (6, 2, 3) (6, 8, 9, 3)
4 9
5 3 (6, 3) (2, 8, 9) (2, 8, 9, 3)
 Group Activity
The following are the systolic blood pressure of all teachers in
SciTech.
120 110 120 130 120 TASK
130 112 125 120 130
1. Find the population
120 120 130 110 120
mean.
140 115 125 130 115
2. Use lottery method to
145 120 123 140 130
select 30 samples and
110 140 140 120 120
compute the mean.
160 120 135 130 125
130 130 140 120 110 3. Compare the two means.
125 150 125 110 125
115 120 130 120 130
Confidence Interval – range of values.

In approximating the population mean by determining a

range of values within the population mean is most likely to
be located, Confidence Level is used.
Confidence level refers to the probability that the
confidence interval contains the true population parameter.

The confidence level = (1 - 𝜶)*100%

where: 𝛼 = probability that the confidence interval does not
contain the true population parameter

Critical value is the value that indicates the point beyond

which the true population parameter is not found.
Interval Estimate of Population Mean with Known Variance.

Formula for interval estimate of population mean when

population variance is known and n ≥ 30.
𝜎 𝜎 𝜎 𝜎
𝑥ҧ − 𝑧𝑎 𝑛 , 𝑥ҧ + 𝑧𝑎 𝑛 or 𝑥ҧ − 𝑧𝑎 𝑛 < 𝜇 < 𝑥ҧ + 𝑧𝑎 𝑛
2 2 2 2

where:
𝑥ҧ = mean of a random sample of size n
𝑛 = sample size
𝜎 = population standard deviation
𝛼
𝑧 = z value at 1
𝑎 − confidence level.
2 2
The confidence interval can
be written as,

𝑥ҧ − 𝐸, 𝑥ҧ + 𝐸 or 𝑥ҧ − 𝐸 < 𝜇 < 𝑥ҧ + 𝐸

where:
𝜇 = population mean Margin of error formula
𝐸 = margin of error 𝜎
𝑥ҧ − 𝐸= the lower confidence limit 𝐸 = 𝑧𝑎
2 𝑛
𝑥ҧ + 𝐸= the upper confidence limit
 EXAMPLE
The mean score of a random sample of 49 Grade 11
students who took the first periodic test is calculated to
be 78. The population variance is known to be 0.16.

a. Find the 95% confidence interval for the mean of the

entire Grade 11 students.
b. Find the lower and the upper confidence limits.
Solution
Solution
Solution
Another Method
 Interpretation

The researcher is 95% confident that the sample mean

𝑥ҧ = 78 differs from the population mean 𝜇 by no more
than 0.112 or 0.11. Also, the researcher is 95%
confident that the population mean 𝜇 is between 77.89
and 78.11 when the mean of the sample is 78.