ESTIMATION

OF
PARAMETERS
ESTIMATION OF
PARAMETER:

• POINT ESTIMATOR FOR POPULATION MEAN

• POINT ESTIMATOR FOR POPULATION

PROPORTION
INTERVAL
ESTIMATO
INTERVAL ESTIMATOR
• It is used to estimate a population parameter using a range of
values. The resulting values is called as an INTERVAL
ESTIMATE.

• It is also called as the “confidence interval”.

For example, if you estimate the average age of the STEM

students in a class and you say that the average age of students in a
class is 15 – 17 years old, then we call 15 – 17 as an interval
estimate.
 For us to best estimate the population mean, 𝝁, the point estimator is
unbiased with a standard error estimated as
𝝈
𝑺𝑬 𝒙 =
√𝒏
For n ≥ 30 , the margin of error E of the given confidence interval is
estimated by
𝝈
𝑬=𝒁𝜶 ∙
𝟐 √𝒏
Confidence Level

70% 0.30 0.15 1.04

75% 0.25 0.125 1.15
80% 0.20 0.10 1.28
85% 0.15 0.075 1.44
90% 0.10 0.05 1.645
92% 0.08 0.04 1.75
95% 0.05 0.025 1.96
96% 0.04 0.02 2.05
98% 0.02 0.01 2.33
99% 0.01 0.005 2.58
To find

𝟏+ 𝑪𝑳
𝑨=
𝟐

𝟏+𝟗𝟓 %
𝑨=
𝟐
¿ 𝟎 . 𝟗𝟕𝟓- 0.5
=
0.475
𝒁 𝜶 =𝟏 . 𝟗𝟔
𝟐
Example 1: Suppose we take sample of size 𝑛 = 30 from a population with
variance .What is the 95% margin of error?

𝝈
𝑬=𝒁𝜶 ∙
𝟐 √𝒏
𝑬 =± 𝟏 . 𝟗𝟔 ∙ √ 𝟎 .𝟐
√𝟑𝟎
𝑬 =𝟎 . 𝟏𝟔
This means that by using sample mean to estimate the
population mean μ, we can be confident that the error of
estimate will not exceed 0.16.
Example 2: A random sample of 𝑛 = 50 has an average of 60. It is estimated that
the population standard deviation is 2.11. Estimate the 95% margin of error.

𝝈
𝑬=𝒁𝜶 ∙
𝟐 √𝒏
𝟐 .𝟏𝟏
𝑬 =± 𝟏 . 𝟗𝟔 ∙
√ 𝟓𝟎
𝑬 =𝟎 . 𝟑𝟎
Therefore, the 95% margin error is 0.30.
Example 3: A random sample of 10 apples for delivery in a local market has the following
weights (see the table below). It is estimated that the population standard deviation is 7.2
grams.
a. What is the best point estimate for the population mean, which refers to the average
weight of all the apples?
b. Estimate also the 95% margin of error.

Solution for a:
Remember this!!!
The best point estimate for the population mean 𝜇 is the sample mean

𝑥=
∑ 𝒙
¿ 173
𝒏
Therefore, the sample mean is 173 grams.
Solution for b:

𝝈
𝑬=𝒁𝜶 ∙
𝟐 √𝒏
𝟕.𝟐
𝑬 =± 𝟏 . 𝟗𝟔 ∙
√ 𝟏𝟎
𝑬 =𝟒 . 𝟒𝟔
We can be fairly confident that the estimated mean of 173 grams is within
4.46 grams of the true population mean
 An interval estimate may or may not contain the parameter. The
chance that the interval estimate contains the true population
parameter is referred to as the confidence level.
The confidence level of an interval estimate is the probability that
the interval estimate will contain the true population parameter. A
confidence level is denoted by

If an interval estimate is constructed by the help of a confidence

level, it will be called as a confidence interval

A confidence interval is an interval estimate of a parameter that is

constructed using a confidence level.
For us to construct a confidence interval, we can use the standard
formula
𝝈
𝒙± 𝒁𝜶∙
𝟐 √𝒏

The general formula for the confidence intervals for the large sample
is:

(
𝒙 −𝒁 𝜶∙
𝟐 √𝒏
𝝈
) (
< 𝝁< 𝒙 + 𝒁 𝜶 ∙
𝟐 √𝒏
𝝈
)
Lower Confidence Boundary Upper Confidence Boundary
or or
Lower Limit Upper Limit
A Four –Step Process in Computing the
Interval Estimate
1. Determine the confidence coefficients .
2. Find the maximum error E of the estimate.
3. Find the lower and the upper confidence limit.
4. Describe the results
Example 1: Given: 𝑎𝑛𝑑 . Find the estimate of the population mean using the 95
% confidence level.

Solution:
Step 1: Determine the confidence coefficients .

𝒁 𝜶 =𝟏 . 𝟗𝟔
95 % →
𝟐

Step 2: Find the maximum error E of the estimate.

Step 3: Find the lower and the upper confidence limit.

( 𝒙 −𝒁 𝜶
𝟐
∙
𝝈
√𝒏 )
< 𝝁<
( 𝒙+ 𝒁 𝜶
𝟐
∙
𝝈
√𝒏 )
( 82 − 0 . 78 ) <𝜇< ( 82 +0 . 78 )

𝟖𝟏 . 𝟐𝟐< 𝝁< 𝟖𝟐 .𝟕𝟖

Step 4: Describe the results

We can say with 95% confidence that the interval between 81.22 and
82.78 contains the population mean 𝜇 based on a sample size is 100.
Example 2: A researcher wants to estimate the number of hours that 5-year-old
children spend watching television. A sample of 45 five-year-old children was
observed to have a mean viewing time of 5 hours. The population is normally
distributed with a population standard deviation 𝜎 = 0.7 hours, find
a. the best point estimate of the population mean
b. the 95% confidence interval of the population mean.

Given: 𝜎 = 0 .7𝑛=45
Solution for a:
Remember, The best point estimate for the population mean 𝜇 is the sample mean

The point estimate for the population mean is 5

Example 2: A researcher wants to estimate the number of hours that 5-year-old
children spend watching television. A sample of 45 five-year-old children was
observed to have a mean viewing time of 5 hours. The population is normally
distributed with a population standard deviation 𝜎 = 0.7 hours, find
b. the 95% confidence interval of the population mean.
Solution for b:

Step 1: Determine the confidence coefficients .

𝒁 𝜶 =𝟏 . 𝟗𝟔
95 % →
𝟐

Step 2: Find the maximum error E of the estimate.

𝑬 =𝟎 . 𝟎𝟐
Step 3: Find the lower and the upper confidence limit.

( 𝒙 −𝒁 𝜶
𝟐
∙
𝝈
√𝒏 )
< 𝝁<
( 𝒙+ 𝒁 𝜶
𝟐
∙
𝝈
√𝒏 )
( 5 − 0 . 02 ) < 𝜇< ( 5 + 0 . 02 )

𝟒 . 𝟗𝟖< 𝝁<𝟓 . 𝟎𝟐

Step 4: Describe the results

Thus, we can say with 95% confidence that the interval between 4.8 hours
and 5.2 hours contains the population mean 𝜇 based on the 45 five-year-
old children’s TV viewing time.
Example 3: A random selection of 40 entering Mathematics majors has the
following GPAs. Assume that . Estimate the true mean GPA with 99% confidence.

Solution:

𝑥=
∑ 𝒙
¿ 3 . 34
𝒏
 Step 1: Determine the confidence coefficients .

𝒁 𝜶 =𝟐 . 𝟓𝟖
99% →
𝟐

Step 2: Find the maximum error E of the estimate.

𝑬 =𝟎 . 𝟏𝟗
Step 3: Find the lower and the upper confidence limit.

Step 4: Describe the results

. 34 − 0 . 19 ) <𝜇< ( 3 .
We can say with 99% confidence that the interval
between 3.15 and 3.53 contains the true mean GPA
34 + 0of. 19 )
the population based on the sample GPA of 40
entering Mathematics majors.

𝟑 . 𝟏𝟓<𝝁<𝟑 . 𝟓𝟑