ESTIMATION OF

PARAMETERS

PREPARED BY:
HANS JOHN TABUTOL PACNIS
 TERMS TO REMEMBER
ESTIMATE
A value, or range of values, that approximates the
population value.
Estimates are sample values computed from
sample information.
ESTIMATION
 The process of determining parameter values.
Point Estimate
 A specific numerical value of a population
parameter. The sample mean is the best point
estimate for population mean.
Interval Estimate
 A range of values that may contain the parameter
of the population.
 NOTE!!!

To enhance the reliability of an estimate;

We take as many random samples as possible
from a population.
Compute the mean of each sample.
Compute the mean of the means for all
samples.
 LESSON 1
UNDERSTANDING THE POINT ESTIMATE OF A
POPULATION MEAN.
 EXAMPLE
From a random selection of ten groups, the weight in kilograms, of
pre – school children in a barangay child care center were obtained.
Find the weight of all pre – school children in that barangay.
Column Column Column Column Column Column Column Column Column Column
1 2 3 4 5 6 7 8 9 10
Group Group Group Group Group Group Group Group Group Group
A B C D E F G H I J

20 25 19 22 25 21 19 23 25 23
18 21 23 25 19 26 28 20 19 20
25 26 15 14 19 18 20 18 22 24
22 25 18 19 20 23 21 20 23 19
18 17 20 22 23 21 19 15 16 20
23 24 21 20 19 19 20 22 25 20
20 22 23 21 19 26 23 22 25 20
19 20 18 18 20 22 20 19 20 22
SOLUTION
STEP 1:
Find the mean of each random sample( per column).
Column Column Column Column Column Column Column Column Column Column
1 2 3 4 5 6 7 8 9 10

Group Group Group Group Group Group Group Group Group Group
A B C D E F G H I J

20 25 19 22 25 21 19 23 25 23
18 21 23 25 19 26 28 20 19 20
25 26 15 14 19 18 20 18 22 24
22 25 18 19 20 23 21 20 23 19
18 17 20 22 23 21 19 15 16 20
23 24 21 20 19 19 20 22 25 20
20 22 23 21 19 26 23 22 25 20
19 20 18 18 20 22 20 19 20 22

20.625 22.5 19.625 20.125 20.5 22.0 21.25 19.875 21.875 21.0
SOLUTION
STEP 2:
Compute the mean of the means , denoted by .
Column Column Column Column Column Column Column Column Column Column
1 2 3 4 5 6 7 8 9 10

Group Group Group Group Group Group Group Group Group Group
A B C D E F G H I J

20.625 22.5 19.625 20.125 20.5 22.0 21.25 19.875 21.875 21.0

= ( 20.625 + 22.5 + 19.625 + 20.125 + 20.5 + 22.0 + 21.25 + 19.875 +

21.875 + 21.0 ) / 10
= 20.9375 ≈ 21 kg

STEP 3.
Interpret the result.
Based on the ten random samples groups, the point estimate of
the population mean is 20.9375 or approximately 21 kg; that is,
the mean weight of all pre – school children in the barangay child
care center is 20.9375 or approximately 21 kilograms.
LESSON TEST 1
1. A sample of 100 grade 9 students’ ages have been
obtained to estimate the mean age of all grade 9 students.
X = 16 years and the population variance is 16. What is the
point estimate for µ?

2. For a 100m butterfly style swimming event, 40 random

sample times have been noted among athletes. The
population standard deviation is 10 minutes. Find the
point estimate.
12 13 16 16 12 18 14 20

10 14 12 14 14 23 20 16

9 18 9 16 16 15 18 20

9.5 16 10 15 17 17 16 18

10.2 20 13 15 12 10 18 18
 LESSON 2
COMPUTING INTERVAL ESTIMATES FOR THE
POPULATION MEAN.
Note:
1. When n is large, the Central Limit Theorem (CLT) is
applicable, and the z – test is also applicable.

2. An interval estimate , called the confidence

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

3. The confidence level of an estimate of the

parameter is the probability that the interval
estimate contains the parameter.
4. The general computing formula:

margin of error
 EXAMPLE
Mang Pedro uses the kaing to assess his harvest of mangoes. After
he has used a certain kind of fertilizer, the mangoes yield the
following per kaing.
100 92 110 112 90 98 97 106 100 100

90 98 120 108 96 92 95 98 92 102

88 102 98 88 89 90 102 100 100 97

102 100 100 86 87 100 105 97 93 96

89 98 96 96 92 100 98 98 92 100

Solution
Step 1.
The parameter of interest is the mean of the population
where the sample came from.
Step 2.
The sample information consists of the raw score n =
50 and σ = 8.
The sample size of 50 kaing is large enough for the
Central Limit Theorem to satisfy the assumption that
the sampling distribution of means is normally
distributed. The z – test is also applicable.

Step 3.
The level of confidence is 95% , or α = 0.05.
Critical Values: ±1.96
This means that if more random samples are taken
from the target population and an interval estimate is
made for each sample, then 95% of the intervals will
contain the true parameter value.
Step 4. Solve for the sample mean.

Step 5. Solve for the margin of error and the interval

estimate.
Margin of error Interval Estimate

Step 6.
We can say with 95% confidence that the interval between 95 and
100 contains the true mean of mangoes in each kaing, based on a
sample of 50 kaing.
LESSON TEST 2
1. A sample of 100 grade 9 students’ ages have been
obtained to estimate the mean age of all grade 9 students.
X = 16 years and the population variance is 16.
a. What is the point estimate for µ?
b. Find the 95% confidence interval for µ.

2. For a 100m butterfly style swimming event, 40 random

sample times have been noted among athletes. The
population standard deviation is 10 minutes. Find the
point estimate and interval estimate for the population
mean µ, using α = 0.01 .
12 13 16 16 12 18 14 20

10 14 12 14 14 23 20 16

9 18 9 16 16 15 18 20

9.5 16 10 15 17 17 16 18

10.2 20 13 15 12 10 18 18
 LESSON 3
Understanding Interval Estimates for the
Population Mean when σ is unknown.
Note
1. The general expression for the confidence interval
when σ is unknown is given by and the
distribution is called t distribution.

2. The degrees of freedom (df), are the number of values

that are free to vary after a sample statistic has been
computed.
Margin of
Error
3. The formula is:

4. When to used t distribution;

a. The sample must be simple random samples and are taken
from normal, or approximately normal distributions.
b. Use the statistic instead of .

c. When σ is not known, it must be estimated by s, which is a

sample statistic.
STEPS
1. Describe the population parameter of interest.
2. Specify the confidence interval criteria.
a. Check the assumptions
b. Determine the test statistic to be used, in this
case, it is the t statistic.
c. State the confidence level.
3. Collect and present the sample evidence.
a. Collect the sample information.
b. Find the point estimate.
4. Determine the confidence interval.
a. Determine the confidence coefficient ( ) from
the t – table.
b. Find , the margin of error.
c. Find the lower and upper confidence limits.
d. Describe the results.
Example
An admission officer of an educational institution wants
to know the mean age of all entering mathematics major.
He computed a mean age of 18 years and a standard
deviation of 1.2 years on a random sample of 25 entering
mathematics majors purportedly coming from a normally
distributed population. With 99% confidence, find the
point estimate and the interval estimate of the population
mean.

STEP 1
The parameter of interest is the mean age µ of entering
mathematics major.
STEP 2.a
The sample size of 25 mathematics major comes from a
normally distributed population.
STEP 2.b
The test statistic is t, and s = 1.2 .

STEP 2.c
For 99% confidence, α = 1.00 – .99 = 0.01 .

STEP 3.a
The sample information consists of 25 observations with
sample mean = 18 and sample standard deviation = 1.2 .

STEP 3.b
The point estimate for the population mean is 18.

STEP 4.a
From the t – table, for n = 25 , df = 24. The 99% (or 0.99)
confidence coefficient for this value from the table is t =
2.797 .
STEP 4. b

Step 4. c

STEP 4. d
Thus, we can say with 99% confidence that the interval
between 17.33 and 18.67 contains the true mean age
the population of entering mathematics majors based
on the sample of 25 entering mathematics major.
 For your Information

The t – distribution was formulated in 1908

by an irish brewing employee named W.S.
Gosset. Gosset was involved in researching
new methods of manufacturing ale. Because
brewing employees were not allowed to
publish results, Gosset published his finding
using the pseudonym student. Hence, the t-
distribution is also called Student’s
distribution.
LESSON TEST 3
A. Find the critical value.
1. n = 24, 99% confidence
2. n = 14, 95% confidence
3. n = 8, 99% confidence

B. Find the margin of error E.

1. n = 16 , s = 3.1 , 95% confidence
2. n = 21 , s = 5, 99% confidence

C. Solve the problem.

1. Edith has observed that the mean age of youth volunteers
in a barangay project is 17.5 years with a standard
deviation of 2 years. If the sample comes from
approximately normal distribution, what are the point and
the interval estimates of the population mean? Adopt 99%
confidence level.
 LESSON 4
Computing the Point Estimate of the
Population Proportion p.
NOTES:
1. A Proportion is a fraction expression where
favourable response is in the numerator and the
total number of respondents is in the denominator.

2. Sample Proportion: .

3. For a sample proportion:

4. The estimator of population proportion p is .

5. The mean of the sampling distribution of is p;

is the unbiased estimator of p.
6. The standard deviation of the sampling distribution
of is ; that is, .
Example
Nora conducted a survey for a fast food restaurant owner
wanted to know the level of acceptability of a new food
combo among customers. A tally of the frequency yielded
the following results.
FREQUENCY
Very Acceptable ( VA ) 182
Acceptable ( A ) 74

Questions
1. What is the sample size?
2. What percentage of the respondents find the new
food combo very acceptable?
3. What percentage of the respondents find the new
food combo acceptable?
4. What conclusion may be derived from the
frequencies?
Solution
1. The total number of respondents is 256.
2. There are 182 who find the new food combo very
acceptable.

3. There are 74 who find the new food combo

acceptable.

4. In conclusion, the acceptability of the new food

combo is relative to the owner’s view of the matter.
The frequencies might be disturbing. To increase the
revenue, the owner can decide on what actions to
undertake in order to enhance the acceptability of the
new food combo.
 LESSON 5
Exploring Interval Estimates of the Population
Proportion p.
NOTE
1. The margin of error ( E ) for the confidence interval of a
population proportion is:

2. The formula for computing a large sample confidence interval for

population proportion is:

3. These assumptions are made for finding a confidence interval for

a population proportion.
a. The sample is a random sample.
b. The conditions for a binomial experiment are satisfied.
Example
A survey of 1000 students shows that 780 trust the college dean.
Compute the 95% confidence interval for the proportion of all
students who trust the college dean.

SOLUTION
Find the Point Estimate
Step 1: The parameter of interest is the mean proportion p of all
students who trust the college dean.

Step 2: The sample size of 1000 is normally distributed by the CLT.

The test statistic is the p.

Step 3: The confidence level: 95% and α = 0.05 .

Confidence coefficient : 1.96
Step 4: X = 780 and n = 1000
Point Estimate of p
Step 5: First, find .

Next, substitute the value of n, and in the formula to find the

maximum error of estimate.

Then, compute the interval estimate.

For the lower limit

For the upper limit

Step 6: With 95% confidence, we state that the interval from 75%
to 81% contains the true percentage of all students who trust the
college dean.
 LESSON 6
Making inferences from a Population
Proportion.
PROPORTION
a fraction expression where the favourable
responses is in the numerator and the total number of
respondents is in the denominator. The basic operation
involves division. Thus, the result is a decimal value
that can be expressed as percent.

EXAMPLE
The registrar of a university has conducted a pre –
survey of selected courses in the university. Of 850
randomly selected students, 450 have said they like
science course. With 95% confidence, what
interpretation can we make regarding the probability
that all students in the university want to major in
science?
STEP 1:
The parameter of interest is the mean
proportion p of all students in the teacher
graduate college who wants to major in
science.

STEP 2:
By the CLT, the sample size of 850 is normally
distributed. The test statistic is p.

STEP 3:
Confidence level: 95% and α = 0.05
Confidence coefficient: ±1.96
STEP 4:
Collect sample evidence and find the point estimate.
Sample evidence: X = 450 and n = 850.
Point estimate of p.

To find the 95% confidence interval,

STEP 5:
First, find .

Second, find the maximum error.

Third, compute the interval estimates.
For the lower limit

For the upper limit

STEP 6:
Thus, wit 95% confidence, we can assert that the interval from
50% to 56% contains the true percentage of all graduate students
who want to major in science.

We interpret the result like this: With repeated construction of

confidence intervals, approximately 95% of all the samples would
produce confidence intervals that contain the true population
proportion p.
 LESSON TEST 4,5 and 6.
A. Find the proportions and .
1. X = 100 ; n = 378
2. X = 234 ; n = 512
3. X = 356 ; n = 624
B. Compute the population proportion interval
estimate.
1. n = 210 , = 0.60 , 95% confidence
2. n = 460 , = 0.53 , 99% confidence

C. Solve the problem.

1. Ryzel conducted a poll survey in which 520 of
1200 randomly selected voters indicated their
preference for a certain candidate. Using 95%
confidence interval, what is the true population
proportion p of voters who prefer the candidate?
 LESSON 7
Understanding Confidence Level and Sample
Size.
STEPS
1. Determine the confidence level.
2. Determine the confidence coefficient/critical value.
3. Determine the error.
4. Determine the and .
5. Substitute the values in the formula .
6. Round up the resulting value to the nearest whole
number.
Example
The mayor of a town wants to use the proportion of a
population to determine the sample size he needed to
interview regarding plans about a new market building.
He wants to be able to assert with a probability 0.95
that his error will be at most 0.05. A survey in the past
has shown 65% approval. How large a sample does the
mayor need?
Solution
Step 1: The confidence level is 95%
Step 2: With 95% confidence level, = 1.96 .
Step 3: E = 5% or 0.05 .
Step 4: The given proportion is 65%
That is, = 0.65
Thus, = 1 – 0.65 = 0.35

Step 5:

Step 6: The mayor needs a sample size of 350

respondent constituents.
LESSON TEST 7

A. Find the .
1. 90% confidence, E = 0.01
2. 95% confidence, E = 0.15
3. 99% confidence, E = 0.05

B. Find the sample size.

1. 90% confidence, E = 0.08, = 0.38
2. 95% confidence, E = 0.05, = 0.38

C. Solve the problem.

1. A bottle of fruit juice drink is claimed to be 500 ml with
a standard deviation of 20 ml. Joshua wants to investigate
the same fruit juice drink to estimate the true population
mean content correct to within 5 ml, adopting 95%
confidence. How many bottles of fruit juice drink of the
same brand does he need for a sample?
 THANK YOU
FOR YOUR
COOPERATION!!!!!!!