MODULE 8

ESTIMATION
BY ARMAN LOUI ARQUILADA
Estimator
 An Estimator is a Rule or a formula for coming up with a value of a
parameter based on a random sample of size n drawn from the
population under the study
 An Estimate is the computed value of the estimator.

Example: The sample mean defined as is called an estimator

Whereas, a numerical value resulting from the computation, say 15,000 pesos is called an estimate
of the average monthly income of government employees in a certain agency
Two types of Estimates
1) Point Estimate – a single number (value) computed from a random sample which represents
A plausible value of the parameter
Two types of Estimates
 Continuation (NOTE: the following estimates are under the Simple
random Sampling Methods only)
Two types of Estimates

 2) Interval Estimate- an interval estimate is a range of values

computed from a random sample, which represents an interval of
plausible values for the unknown value of the parameter of the
population. It is generally of the form, [LOWER LIMIT, UPPER LIMIT]
wherein
 LOWER LIMIT= ESTIMATE - d
 UPPER LIMIT= ESTIMATE + d
 Where d is the maximum allowable error equal to the half of the
width of the intervals
Two types of Estimates
Interpretation

 We are 95% confident that the population mean lies between the
interval (LL,UL)
Two types of Estimates
Two types of Estimates
Case 3 (Example)
Two types of Estimates
Estimation of Population Proportion
(Confidence Interval)
Types of Error
References

 Workbok in Statistics 1, Tenth Edition, Zita VJ Albacea, PhD, et.al.

 https://www.expii.com/t/types-of-error-overview-comparison-8112