ESTIMATION

OF
PARAMETERS
Chapter 4
 LESSON 1:
ESTIMATION
 Basic Concepts of Estimation
Point Estimation is the use of a suitable statistic and
computes its value from a given sample data, that is used
to estimate a parameter. The statistic use is called the
point estimator, and the value of the statistic is called the
point estimate.
- the point estimator of the - the estimator of the population
population parameter mean parameter proportion p.

where x is the no. of successes

n is the sample size.
Examples
1. Below are weights in kilograms of 20 randomly selected
grade 3 students in Dasmarinas Elementary School.
22.5 21.8 28.4 21.8
24.7 25.2 27.3 22.6
20.9 30.1 25.4 24.7
25.6 27.3 22.8 23.8
28.1 26.6 21.6 23.0
Estimate the mean weight of all the grade 3 students.
Examples
2. The number of customers of a certain fast-food X was
recorded daily. The 10 – day observations are as follows:

195, 225, 208, 215, 231, 198, 202, 210, 228, and 214

Estimate the average daily number of customers of fast-

food X.
Examples
3. A survey was conducted in DLSU-D to determine the
proportion of students that own laptop computers. From
a sample of 200 students, 78 own laptop computers.
From the given information, find an estimate of the
proportion of students DLSU-D who own laptop
computers.

4. Out of the 350 randomly selected households in Cavite,

164 are with internet connections at home. Estimate the
proportion of households in Cavite with internet
connection at home.
 LESSON 2:
INTERVAL ESTIMATION
FOR POPULATION MEAN
Basic Terms
A confidence interval is a specific interval estimate of a
parameter determined by using data obtained from a sample
and the specific confidence level of the estimate.
The confidence level of an interval estimate of a parameter is
the probability that the interval estimate will contain the
parameter.

The maximum error of estimate is the maximum difference

between the point estimate of a parameter and the actual value
of the parameter.   
E  z 2  
 n
 STEPS
1. Identify the given information such
as the sample mean, the sample
size and the variance/standard
deviation.
2. Determine the confidence level
and the level of error.
3. Determine the value of the using
the z – table.
4. Compute for the confidence
interval using the formula.
5. Interpret the results.
Examples
1. Given the following:

Construct a 95% confidence interval for the population

mean µ.

2. The average income of 100 randomly selected jeepney

drivers in CALABARZON is 635.75 pesos per day. If it is
known that the standard deviation of the daily income of
all the drivers in CALABARZON is 110.50 pesos per day,
find a 98% CI on the average daily income of all the
drivers in CALABARZON area.
CENTRAL LIMIT THEOREM AND
CONFIDENCE INTERVAL FOR THE MEAN
The CLT states that as the sample size n
increases or becomes large, the sampling
distribution of the mean approaches a normal
distribution. We can assume that s2 =2 holds true
when the sample size is large enough (n> 30)

Because of this assumption, when the variance

2
is unknown but the sample size is large, the sample
variance s2 can be used to replace 2 in calculating
confidence interval for the mean µ.
Examples
1. Given the following:

Construct a 95% confidence interval for the population

mean µ.

2. The mean contents of 75 randomly selected bottles of

perfume X is 98.5 ml with a standard deviation of 2.2 ml.
Find the 98% CI on the mean contents of all bottles of
Perfume X.
END