Statistical

Estimation Theory
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Population Vs
Sample
 Population- The entire set of

“ individuals or objects of interest,

either infinite or finite.

Sample - subset of the

population; its size is always
finite.

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Population Vs Sample
Population Sample
Complete Set of values Subset of Population
Population value- Parameter Sample Value- Statistic
Parameter Statistic
Size

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5
Statistical
Hypothesis

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Hypothesis
▸ Any assumption or guess or statement
regarding the population .
▸ Null Hypothesis (𝐻0)- A statistical
hypothesis which is formulated for the
purpose of rejecting or nullifying it
▸ Alternate Hypothesis (𝐻1)- Any
hypothesis which differs from the given
null hypothesis

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Null Hypothesis
▸  Null Hypothesis can be statement of equality.
▹ There is no difference in mean scores of VSIT and SIES.
▹ H0:
▸ Null Hypothesis can be statement no relationship.
▹ There is no relation between personality and job success.
▹ Plant growth is not affected by light intensity.

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Hypothesis
Testing
Two tailed and One Tailed Test

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Two Tailed and One Tailed Test
▸ Two Tail Test: A two-tailed test is a
statistical test in which the critical
area of a distribution is two-sided.

▸ One tail test: A one-tailed test is a

statistical test in which the critical
area of a distribution is one-sided.

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Type I and Type II Errors
Type I Error Type II Error
When we reject a hypothesis When we accept a
when it should be accepted hypothesis when it should be
rejected

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Level of Significance
▸ Maximum allowable probability of making type I error.
▸ This probability is denoted by 𝛼
▸ A significance level of 0.05 (5%) 𝑜𝑟 0.01 (1%) is common.

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 Critical Value

LOS
Test
Two-tailed Test
=1.96 = 2.58
One-tailed
One-tailed Test
Test
=1.645 = 2.33

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Z Score
▸
▸ Mean
 

▸ Proportion

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Steps for hypothesis testing
▸
1.   Propose Ho and H1.
2. Identify test-
▹ one tailed (if < , >)
▹ two tailed (if ≠)
3. Get table value according to LOS mentioned in the problem.
4. Find Z score using the formula.
5. Inference-
Reject Ho Accept Ho Reject Ho
▹ If Z < , accept Ho.
▹ If Z > , reject Ho.
𝑍
  𝑐 𝑍
  𝑐
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 Question

▸ Step 1- Propose H0

▸ Step 2- Identify Test

▹ As > sign is there, use One tailed Test
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Cont.…
Two-tailed Test =1.96 = 2.58
One-tailed Test =1.645 = 2.33

▸  Step 3- Get table value of for LOS

= 2.33
▸ Step 4- Find Z score using formula-
1800
  ´ −𝜇
𝑋
𝑍= 100
𝜎
50
√𝑁 1850
1850
 3.5355

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Cont. ..
▸  Step 5 – Inference
, reject Ho.

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Check the PDF of unit 3 for
similar problems

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Chi Square
Test

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Chi square test-
▸ A chi-square (χ2) statistic is a test that measures how expectations
compare to actual observed data (or model results). 
 

Where

Degree of freedom for mxn table-

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 Question
▸ In
  an experiment to study the dependence of hypertension on smoking
habits, the following data is taken from 180 individuals.
  No Smokers Moderate Smokers Heavy smokers
Hypertension 21 36 30
No hypertension 48 26 19

Test the hypothesis at 5 % LOS that the presence or absence of hypertension is

independent of smoking. (Given- =5.99)

Ho: Presence or absence of hypertension is independent of smoking.

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Cont. ..
Moderate Heavy
No Smokers
  Smokers smokers Total
o
o o
Hypertension 21 36 30 87
No hypertension 48 26 19 93
Total 69 62 49 180

Moderate Heavy
No Smokers
  e Smokers smokers
e e

Hypertension

No hypertension
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Cont. ..
o
o e
e
21 33.35 4.5734
21 33.35 4.5734
36 29.967 1.2177
36 29.967 1.2177
30 23.683 1.6849
30 23.683 1.6849
48 35.65 4.2780
48 35.65 4.2780
26 32.033 1.1363
26 32.033 1.1363
19 25.316 1.5761
19 25.316 1.5761
Reject H0
= 14.46
Reject H0

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Yate’s Correction
▸ For 2x2 table-

▸  
=

a b a+b

c d c+d

Total (N)
a+c b+d
Questions
▸ In an experiment of a particular vaccine on cattle, following result is
obtained-

  Affected Unaffected
Inoculated 11 31
Not
14 4
▸   inoculated

Examine the effect of vaccine in controlling the disease at 1 % LOS.

(Given- =6.63)
Cont. ..
  Affected Unaffected Row Total
Inoculated 11 a 31 b 42
Not inoculated 14 c 4 d 18
Col Total 25 35 60

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THANKS!
Any questions?

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