ESTIMATION OF PARAMETERS

• ESTIMATES

  • Values that estimate true value of population
  • 2 types:
  • Point estimate
  • Confidence interval estimate
• POINT ESTIMATE

  • Specific numerical value estimate of a parameter.
• INTERVAL ESTIMATE

  • Range of values used to estimate parameter.
• CONFIDENCE LEVEL

  • Probability that the interval estimate will contain the parameter
• • 90% = 1.645
  • 95% = 1.96
  • 99% = 2.575
• SAMPLE SIZE

  • Number of actual data needed for an estimate.