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Lesson 9
Lesson 9
Confidence Interval
Chapter 4: Estimation
⚫ process of using sample data to calculate
a number that can be used to represent
an unknown population parameter
Estimation
Point estimate: A single statistic value
estimate for the parameter value
Types of Estimate
1. Unbiased – the expected value of the
estimates obtained from samples of a
given size is equal to the parameter
being estimated
2. Consistent – As the sample size
increases, the value of the estimator
approaches the value of the parameter
being estimated
3. Relatively Efficient – The estimator
must have the smallest variance
Example 1
Point Estimate of Population Mean
Point Estimate of Population
Variance
A manufacturer wants to estimate the
average shoe size of Filipino teens. Using a
sample of 7 random teenagers, he gathered
the following sizes: 33, 42, 43, 44, 44, 47,
48.
Related Terms
⚫ Confidence Level – probability that the
parameter is contained in the interval
estimate
Denoted by
Related Terms
If c=90%
c 0.90
0.10
½ (1-c) 0.05
- 1.645
1. 645
Interval estimate
The equivalent area for z
⚫ Find an interval of values for Z using the
standard normal distribution,
corresponding to an area of 95%
⚫ Find an interval of values for Z using the
standard normal distribution,
corresponding to an area of 90.1%
⚫ Find an interval of values for Z using the
standard normal distribution,
corresponding to an area of 96.6%