Reviewer In Statistics

Definition of Terms:

 Percentile - Is the allocation in which a population is being divided into 100 equal groups.

 Point Estimate - It is a specific numerical value of a population parameter. The sample mean
point estimate best describes the population mean.

 Population Mean - The population mean is an average of a group characteristic

 Estimate - A value or a range of values that approximate a parameter

 Parameter - In statistics, Parameter refers to the numerical descriptive measures of a population

or in other words, measures that describe a population

 Point Estimate of a Population Mean - A description of data by determining its parameters

using its estimated population mean.

 Confidence Interval - Another way of estimating a parameter is by using an interval estimate.

An interval estimate, called a confidence interval, is a range of values that is used to estimate a
parameter. This estimate may or may not contain the true parameter value.

 Confidence Level - is the probability that the interval estimate contains the parameter. It
describes what percentage of intervals from many different samples contain the unknown
population parameter.

 Normal Distribution – is a kind of distribution whose mean is 0 and has a standard deviation of
1.

 Margin of Error - denoted by E, which is defined as the maximum likely difference between the
observed sample means and the true value of the population mean.

How to locate Percentiles under Normal Curve?

Example Determine the z score that represents the 90 th Percentile

Steps:

 Draw the appropriate normal curve.

  Express the given percentage as probability.

90th Percentile = 90% = 0.90

 If the probability exceeds 0.5, Split the probability into 0.5000 and the remaining value and if it
does not exceed 0.5, subtract the value of the z scores into 0.5

0.90 = 05 + 0.4

 Determine the z value of the remaining percentage.

*Look 0.400 at the z table

Since 0.4 is not available at the z table (located in between two z values) , proceed to the next step

 If the remaining percentage is not available in the z table, estimate its value.

*Since 0.3997 < 0.4000 < 0.4015

*And 0.4 is nearer to 0.3997 then we take the z score of 0.3997 which is 1.28
  Draw a conclusion.

Point Estimate of a Population Mean

There are lots of ways to Point estimate and some of those are estimating the Mean, Standard Deviation,
and Variance of a Population Mean. In Estimating those Parameters, we should group the given set of
data which they should have the same number of scores.

Example:

There are 60 bottles of coconut juice that are grouped consisting of 10 columns and 6 rows. Determine the
parameters of the data being shown in the table.

Sample 1 Sample 2 Sample 3 Sample 4 Sample 5 Sample 6 Sample Sample 8 Sample Sample
7 9 10

500 498 497 503 499 497 497 497 497 495

500 500 495 494 498 500 500 500 500 497

497 497 502 496 497 497 497 497 497 496

501 495 500 497 497 500 500 495 497 497

502 497 497 499 496 497 497 499 500 500

496 497 495 495 497 497 500 500 496 497

All you have to do is to get the mean of each column of the given set of data and get their average.
Sample (X) Mean
1 499.33
2 497.33
3 497.67
4 497.33
5 497.33
6 498
7 498.5
8 498
9 497.83
10 497
Mean (M) 497.83

Next, Construct a table to compute the Variance of the Data

X X–M (X – M)^2
499.33 499.33 – 497.83 = 1.5 2.25
497.33 497.33 – 497.83 = - 0.5 0.25
497.67 497.67 – 497.83 = - 1.6 0.0256
497.33 497.33 – 497.83 = - 0.5 0.25
497.33 497.33 – 497.83 = - 0.5 0.25
498 498 – 497.83 = 0.17 0.0289
498.5 498.5 – 497.83 = 0.67 0.4489
498 498 – 497.83 = 0.17 0.0289
497.83 497.83 – 497.83 = 0 0
497 497 – 497.83 = - 0.83 0.6889
Σ (X – 0.42212
M)^2

Then, Compute the Variance by this formula:

Σ ( X −M )2
σ 2=
n−1

thus,
0.42212
σ 2=
10−1

σ 2=¿0.4690

And lastly compute the Standard Deviation by means of getting the square root of the Variance.

σ =√ 0.4690

σ =0.6848

Understanding the Confidence Interval Estimates for the Population Mean

 In Understanding the Confidence Interval Estimates for the Population mean, we need to
remember that there are 3 commonly used confidence level together with their respective
equivalent z score values that is used in confidence interval estimates which are:

90% = 1.65

95% = 1.96

99% = 2.56

If the given confidence level is not in the three commonly used confidence level, all we have to
do is to estimate their z scores by following the steps in How to locate Percentiles under Normal
Curve? To be able to find their z scores which is vital in finding the confidence intervals of a population
mean.

In Understanding the Confidence Interval for the Population Mean, we need to find first the Margin of
Error that was indicated by the given Confidence interval. We compute the Margin of error by using the
formula:

E=z a ( σ / √ n )
2

Where, E = Margin of Error

za
2
= equivalent z score of the given confidence interval

σ = Given Standard Deviation

n = Number of given data
After determining the margin of error, we can now compute the confidence interval by using this
formula:

x−E< µ< x + E

Where, x = given men

E = Margin of Error
µ = Actual Mean
Example:

A researcher wants to estimate the number of hours that 5-year old children spend
watching television. A sample of 50 five-year old children was observed to have a mean
viewing time of 3 hours. The population is normally distributed with a population
standard deviation 0.5 hours,

Find the 95% confidence interval of the population mean

1. Given: n = 50 x=3
σ = 0.5 C.L. = 95%

2. Compute the Margin of Error

E=1.96 ( 0.5 / √ 50 )

E=0.1386

3. Compute the Confidence Interval

x−E< µ< x + E

3−0.1386< µ<3+0.1386

Confidence Interval

2.8614< µ<3.1386