ESTIMATION OF

PARAMETERS

Jeanne Valerie A. Agpaoa

Instructor
• Learn the best point
estimates for the population
mean.

• Compute the confidence

interval estimate.

• Solve problems involving

confidence interval
estimation.
 An
estimator
is a rule or formula for
computing an estimate of
a parameter based on a
random sample drawn
from the population.
 An
estimate
is a numerical value of the
estimator.
Example:

In estimating the mean time in

minutes it takes for a student to
answer a ten-point quiz in
Statistics,
 A
Point Estimation
is the process of finding a
single value from a
random sample of the
population to
approximate a population
parameter.
 A
Point Estimator
a formula which when
applied on a random
sample drawn from the
population gives a single
value as an estimate of
the unknown parameter
 A
Point Estimate
single value from a random
sample of the population.
Example:

Consider the population

consisting of the values 2,
3, 4 and 5.
List all possible sample size
3 that can be drawn from
the population without
replacement.
 An
Interval Estimator
is a formula which when
applied in a random
sample drawn from the
population yields a range
or an interval of values
as an estimate of the true
but unknown parameter.
 An
Interval Estimator
is generally
of the form
ESTIMATE ± WIDTH
 A
Confidence Interval Estimate
is better to
approximate the population
parameter by determining a
range of values within which
the population mean is most
likely to be located.
 A
Confidence Interval
Estimate
is used when some
measure of confidence
can be attached to the
interval estimate in
saying that it includes the
unknown parameter.
 A
Confidence Interval
uses interval estimate to
define a range of values
that includes the
parameter being
estimated with a
specified level of
confidence.
 A
Confidence Interval
has the degree of
confidence called
confidence level or
confidence coefficient
with values usually chosen
are 90%, 95%, and 99%.
 A
Confidence Interval
also refers to the
probability that the
confidence interval
contains the true
population parameter.
 A
Confidence Interval
has value of
(1 – α) 100%
and
the value of α corresponds
to the level of
significance.
(1-α)100% Confidence
Interval about the Mean
Example 1:

The mean score of a random

sample of 44 Stat 22 students
who took the midterm exam is
calculated to be 85.

The population variance is known

to be 0.16. Find the 95%
confidence interval of the entire
Stat 22 students.
Example 2:

A survey of the delivery time of

16 orders worth 600 pesos each from
Jollibee yielded a mean of 65 minutes
and a standard deviation of 5 minutes.
Assume that the delivery time is
normally distributed.

a. Find a 95% confidence interval of the true

mean delivery time.
b. Find a 99% confidence interval of the true
mean delivery time.
c. Find a 99% confidence interval of the true
mean delivery time.
Example 3:

The contents of 10 similar containers of

a commercial liquid soap are 10.2, 9.7, 10.1,
10.3, 10.1, 9.8, 9.9, 10.4, 9.6, and 9.8 liters.

a. Find a 95% confidence interval of the true

mean soap content of all such containers
assuming a normal distribution.

b. Find a 99% confidence interval of the true

mean soap content of all such containers
assuming a normal distribution.

c. Compare the widths of the intervals.

Estimating the
Difference
Between Two
Population
Means
Estimating the Difference Between
Two Population Means
Estimating the Difference Between
Two Population Means
Estimating the Difference Between
Two Population Means
Estimating the Difference Between
Two Population Means
 Estimating the Difference Between
Two Population Means

Example 4:

Two groups of students in Statistics

were subjected to two different teaching
techniques. After a month, they were given
exactly the same test. A random sample of
60 students were selected in the first group
and 50 for the second group. The average
score of the first group is 84 with standard
deviation of 8, while the average score of
the second group is 78 with standard
deviation of 6.
 Estimating the Difference Between
Two Population Means

1. a. Find a 90% CI for the difference in the

population means.
b. Find a 95% CI for the difference in the
population means.
c. Find a 99% CI for the difference in the
population means.

2. Is it possible that the value of the lower limit

is greater than the upper limit in the
confidence interval? Why or why not?

3. Is it possible that the value(s) in the

confidence interval is(are) negative? Justify
your answer.
Estimating the Difference Between
Two Population Means
Estimating the Difference Between
Two Population Means

End.