Point Estimate

DEFINITION: A point estimate is a single value estimate for a population parameter. The best point estimate of the population mean is the sample mean

. Find a point estimate for the population mean. 99 101 107 102 109 98 105 103 101 105 98 107 104 96 105 95 98 94 100 104 111 114 87 104 108 101 87 103 106 117 94 103 101 105 90 The sample mean is The point estimate for the price of all one way tickets from Atlanta to Chicago is $101.  .77.Example: Point Estimate A random sample of 35 airfare prices (in dollars) for a one-way ticket from Atlanta to Chicago.

( • 101.77 An interval estimate is an interval or range of values used to estimate a population parameter. x. .77 ) The level of confidence.Interval Estimates Point estimate • 101. is the probability that the interval estimate contains the population parameter.

96 0 1.96 .Distribution of Sample Means When the sample size is at least 30.025 z 95% of all sample means will have standard scores between z = -1.025 0.95 0. the sampling distribution for is normal. Sampling distribution of For c = 0.95 -1.96 and z = 1.96 0.

s = 6. Using zc = 1. When n > 30. the maximum error of estimate for the one-way plane fare from Atlanta to Chicago for a 95% level of confidence given s = 6. can be used for .96. Find E. You are 95% confident that the maximum error of estimate is $2. s. the sample standard deviation.69.22.69. and n = 35. c. .Maximum Error of Estimate The maximum error of estimate E is the greatest possible distance between the point estimate and the value of the parameter it is. estimating for a given level of confidence.

55 = 101. You found Left endpoint ( 99.Confidence Intervals for Definition: A c-confidence interval for the population mean is Find the 95% confidence interval for the one-way plane fare from Atlanta to Chicago. .99.77 and E = 2.77 ) 103.22 Right endpoint • 101.55 and $103.99 With 95% confidence. you can say the mean one-way fare from Atlanta to Chicago is between $99.

the population mean is You want to estimate the mean one-way fare from Atlanta to Chicago. needed to estimate . Since you already have 35. .Sample Size Given a c-confidence level and an maximum error of estimate. the minimum sample size n. How many fares must be included in your sample if you want to be 95% confident that the sample mean is within $2 of the population mean? You should include at least 43 fares in your sample. E. you need 8 more.

782 The critical value for t is 1. then the sampling distribution of is a t-distribution with n – 1 degrees of freedom.05 t 1.782 -1. = 12 c = 90% .The t-Distribution If the distribution of a random variable x is normal and n < 30. Sampling distribution n = 13 d. .90 .05 0 .782 and t = 1. 90% of the sample means (n = 13) will lie between t = -1.f.782.782.

Confidence Interval–Small Sample Maximum error of estimate In a random sample of 13 American adults. The maximum error of estimate is .3 pound.3 pounds 2. 1. The point estimate is = 4. the mean waste recycled per person per day was 4. Assume the variable is normally distributed and construct a 90% confidence interval for .3 pounds and the standard deviation was 0.

45 pounds. . The point estimate is = 4.448 With 90% confidence. you can say the mean waste recycled per person per day is between 4.15 and 4.3 pounds 2.Confidence Interval–Small Sample 1.45 4.152 4.3 4. The maximum error of estimate is Left endpoint Right endpoint ) ( • 4.15 < < 4.

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