Chapter 9

Estimation
Recall: Inferential Statistics
Recall: Inferential Statistics

Parameters – numerical
Population characteristics of the
-Parameters: , 2,  population

Sample Statistics – numerical values

-statistics: computed from a sample
x , s2, p
 Statistical Inference
 Two ways to make inference
– Estimation of parameters (if unknown)
* Point Estimation (X or p)
* Interval Estimation
– Hypothesis Testing (if known)
 Parameters and Statistics I

 A parameter(population parameter)

– A number that describes the population

– Usually unknown

 For example, the population mean is a parameter.

 Parameters and Statistics II
 A statistic (sample statistic)
– A number that describes a sample
– Known after we take a sample
– Changes from sample to sample
– Used to estimate an unknown parameter

 For example, the mean of the data from a sample is

used to give information about the overall mean in
the population from which that sample was drawn.
 Example 1
 A survey conducted by a research in art
education found that, 17% of those surveyed,
had taken one course in dance in their life.

 Q: Is the number 83% (= 100%-17%) a

statistic or a parameter?

 Q: Is the unknown true percentage of

Filipinos that have taken at least one course in
dance in their life a parameter or a statistic?
 Example 2
 A survey conducted by LTFRB among 400
commuters in Metro Manila found that, 80%
of commuters take an uber/grab taxi in going
home late from work/activity (8 PM- 1AM).

 Q: Is the number 80% a statistic or a

parameter?

 Q: Is the unknown true percentage of

commuters in Metro Manila a statistic or
parameter?
 Estimation of One Population
Parameter
 Point Estimation
1. x is an unbiased point estimator of the
population mean .
2. The sample proportion p is an unbiased
point estimator of the population
proportion .
3. The sample variance s2 is an unbiased
point estimator of the population variance
2.
 Recall: Example 2
 A survey conducted by LTFRB among 400
commuters in Metro Manila found that, 80%
of commuters take an uber/grab taxi in going
home late from work/activity (8 PM- 1AM).

 An unbiased point estimate for the true

percentage of commuters in Metro Manila
that take uber/grab taxi in going home late
from work/activity is 80%.
 Estimation of One Population
Parameter
 Interval Estimation
1. Comes up with a range of values to
estimate the unknown population
parameter.
2. Has an associated confidence level,
denoted by (1 - )100%
 A (1- )100% C.I. about 
 Case 1.  is known or n  30.

x Z .
2 n
 A (1- )100% C.I. about 
 Case 1.  is known or n  30.

x Z .
2 n
 Example 3
 A survey conducted by SWS consisting of a
sample of 100 call center agents reveals that
the mean starting salary of call center agents
is P28,000 per month with a standard
deviation of P1000.
 Find a
 a) 90% confidence interval estimate about the
starting salary of call center agents in the
entire country.
 b) 95% confidence interval estimate about the
starting salary of call center agents in the
entire country.
 Example 3
 Solution:
 a) A 90% confidence interval estimate about
the true mean starting salary of call center
agents in the entire country is given by:

 Z0.10/2 
1000
x Z
` = 28,000
 .
2 n 100
= 28,000  Z0.05  100
= 28,000  1.645  100
= 28,000  164.50

= [27,835.50, 28,164.50]
Interpretation: We are 90% confident that the true starting salary of

call center agents in the entire country is between Php27,835.50 and

 Example 3
 Solution:
 b) A 95% confidence interval estimate about
the true mean starting salary of call center
agents in the entire country is given by:

 Z0.05/2 
1000
x Z
` = 28,000
 .
2 n 100
= 28,000  Z0.025  100
= 28,000  1.96  100
= 28,000  196

= [27,804,28,196]
Interpretation: We are 95% confident that the true starting salary of

call center agents in the entire country is between Php27,804 and

 Example 3
 Solution:
a) A 90% confidence interval estimate about the
starting true mean salary of call center agents in
the entire country is given by:

[27, 835.50, 28,164.50]

Interpretation: We are 90% confident that the true starting salary of call

center agents in the entire country is between Php27,835.50 and

b) A 95% confidence interval estimate about the true
mean starting salary of call center agents in the entire
Php28,1654.50.
country is given by:
Interpretation: We are 95% confident that the true starting salary of call

center agents in the entire country is between Php27,804 and Php28,196.

 A (1- )100% C.I. about 
 Case 2.  is unknown and n < 30.
s
x  t  (n  1).
2 n
 Example 4
 A random sample of 12 female college
students residing in a certain dormitory
showed that on the average, they spend
P250/day for their daily snacks, with a
standard deviation of P25. Construct a
99% confidence interval about the true
mean daily expenses of female college
students for their snacks.
 Example 4
 Solution:
A 99% confidence interval about the true
mean daily expenses of female college
students for their snacks is given by:
s 25
 ( nt1
 t250
x= ). (11) 
0.01/2
2 n 12
25
= 250  3.1058 
12
= 250  22.41
= [227.59, 272.41]
 A (1- )100% C.I. about 
 (n is large), np  5 and npq  5

pq
p Z
2 n
 Example 5
 A random sample of 144 college students
in UE reveal that 72 have laptops that they
can use for online learning. Find a
a) 95% confidence interval of the true
proportion of all UE students who own a
laptop
b) a 99% confidence interval of the true
proportion of all UE students who own a
laptop