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5 Point Estimation
5 Point Estimation
5 Point Estimation
Is
the process of finding a single
value called , from a random sample
of the population, to approximate a
population parameter.
Consider the population consisting of values
(6, 2, 8, 9, 3). Find the population mean.
OBSERVATION x
1 6
2 2
3 8
4 9
5 3
Consider some possible samples of size 2
Sample Sample Mean
(6, 2) 4
(6,8) 7
(6,9) 7.5
(6,3) 4.5
Consider some samples of size 3
CONFIDENCE LEVEL
• Refers to the probability that the confidence
interval contains the true population parameter.
• Usually 90%, 95% and 99%
CONFIDENCE LEVEL
•
• FORMULA when
= z value of
CONFIDENCE INTERVAL
• can be written as:
FI09210097im.jpg
Step 2. Find
•
Step 3. Substitute the values of and E in
the confidence interval.
•
CONFIDENCE LEVEL
𝛼 =0.025
2