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Statpro Lesson 9th Week

This document defines key terms related to parameter estimation including estimates, estimation, point estimates, interval estimates, margin of error, and confidence levels. It provides examples of finding point estimates and confidence intervals for population means and proportions. Examples are given for known and unknown population standard deviations using normal and t-distributions. Interval estimates are identified for population means using sample means, standard deviations, sample sizes and confidence levels. Interval estimates are also identified for population proportions using sample sizes, number of responses and confidence levels.

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Karol Josef Fadallan
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76 views26 pages

Statpro Lesson 9th Week

This document defines key terms related to parameter estimation including estimates, estimation, point estimates, interval estimates, margin of error, and confidence levels. It provides examples of finding point estimates and confidence intervals for population means and proportions. Examples are given for known and unknown population standard deviations using normal and t-distributions. Interval estimates are identified for population means using sample means, standard deviations, sample sizes and confidence levels. Interval estimates are also identified for population proportions using sample sizes, number of responses and confidence levels.

Uploaded by

Karol Josef Fadallan
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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ESTIMATION

OF
PARAMETERS
Definition of Terms
ESTIMATE – a value or a range of values that
approximates the population values
ESTIMATION – is the process of determining parameter
values
POINT ESTIMATE – is a specific numerical value of a
population parameter. The sample mean, is the best
point estimate of a population mean
INTERVAL ESTIMATE – is a range of values that may
contain the parameter of a population. It is also
called Confidence Interval
MARGIN OF ERROR – it is the maximum
difference between the observed sample mean
and the true value of the population mean.
We denote margin of error as E where

E=
The three commonly used confidence levels are 90%, 95%, and 99%.
IDENTIFYING INTERVAL ESTIMATE

Example
1. A random sample of 100 students are asked how much
they spend for a meal during weekdays. The average expense
is found to be P75. Past experience has revealed that the
population standard deviation is P5. Find the point estimate
and the interval estimate of the population mean µ using 95%
confidence level.
 
n = 100
σ=5
= 1.96
= 75

75 – 1.96 < μ < 75 + 1.96


75 – 0.98 < μ < 75 + 0.98
74.02 < μ < 75.98
74.02 to 75.98
2. Given the information n = 50; σ = 0.5, and
= 18. Find the point estimate of the
population mean and the 95% confidence
interval of the population mean.
 
17.86 to 18.14
3. Forty graduating students have been given the following
grades in a Field Study. Assume that they come from a
population that has the shape of a normal distribution and σ
= 6. Estimate their true grades, using 99% confidence.
92 84 93 90 92 93 94 90 90 94
87 83 95 85 87 85 95 84 89 91
89 93 87 83 87 80 90 84 83 82
80 90 83 80 89 88 81 81 93 90
 
85.2 to 90.1
IDENTIFYING INTERVAL ESTIMATE WHEN σ IS
UNKNOWN
Suppose the population standard deviation is not
known, as if often the case. Then it must be estimated
by using s which is the standard deviation of the sample.
When s is used, and the sample size is small, we used a
different kind of distribution called the t distribution
Examples
1. Given: n = 20; = 82.5; s = 3. The parent
population is normally distributed. Use
the 95% confidence level to find the
interval estimate for µ.
n = 20
df = 19
s=3
= 2.093
= 82.5

81.1 to 83.9
2. Given: n = 12; = 120; s = 6. The parent population is
normally distributed. Use the 95% confidence level to find the
interval estimate for µ.
 
3. Michelle wants to know the mean of all entering trainees in
a boot camp. The mean age of a random sample of 25 trainees
is 18 years and the standard deviation is 1.3 years. The sample
comes from a normally distributed population. Use 99%
confidence level to find the point estimate, interval estimate of
the population mean.
17.27 to 18.73
IDENTIFYING INTERVAL ESTIMATE OF THE POPULATION
PROPORTION p
Researchers conduct surveys to elicit people’s
perceptions about people, events, or ideas. Surveys are
important as they provide information that may
enhance people’s awareness of particular issues. They
provide information to the public so that they may be
guided accordingly in their day-to-day decisions and
actions. Survey results are reliable when they come up
from the random samples of a target population.
Definition of Terms
PROPORTION – it is a fraction expression with the number of
favourable responses in the numerator and the number of
total respondents in the denominator.
 
VARIABLES TO IDENTIFY
n = sample size
x = no. of elements that possess the desired characteristics
= sample proportion (read as p hat)
=
=1-
Examples
1. Restaurants regularly ask customers to
accomplish questionnaires on the kind of service
that their staff render. Suppose 1,200 people are
randomly chosen from a target population and are
asked if they like services of a specific restaurant.
There are 908 respondents who like the service.
What is the estimate of the true proportion of all
customers who like the service of the restaurant?
n = 1,200
x = 908
=
=
= 0.757 or 76%
=1-
= 1 – 0.757
= 0.243 or 24% 76% of all the customers like the
services of the restaurant.
2. Nora conducted a survey for a fast food restaurant
owner who wanted to know the level of acceptability of
a new food combo among customers. A tally of the
frequencies yielded the ff. results. What percentage of
the respondents find the new combo very acceptable?
  Frequency
Very acceptable (VA) 182
Acceptable (A) 74
n = 256
x = 182
=
=
= 0.71 or 71%
=1-
= 1 – 0.71
= 0.29 or 29% 71% of all the customers find the
new combo very acceptable.
IDENTIFYING INTERVAL ESTIMATE OF THE
POPULATION PROPORTION p

Example
1. A survey of 1000 students shows that 780 trust the
College Dean. Compute a 95% confidence interval for
the proportion of all students who trust the College
Dean.
n = 1000
x = 780
=
=
= 0.78 or 78%
=1-
= 1 – 0.78 75% to 81%
= 0.22 or 22%
 
2. In a survey of 500 random households in a
particular village, mothers have been asked if they
use cellphones to communicate. There are 376
who have said YES. Use a 95% confidence to
estimate the proportion of all mothers who use
the cellphone to communicate.
 
71% to 79%
SEATWORK
1. A random sample of 200 students are asked how much they spend
for a meal during weekdays. The average expense is found to be P75.
Past experience has revealed that the population standard deviation is
P5. Find the point estimate and the interval estimate of the population
mean µ using 95% confidence level.
 
2. A random sample of 100 students are asked how much they spend
for a meal during weekdays. The average expense is found to be P80.
Past experience has revealed that the population standard deviation is
P5. Find the point estimate and the interval estimate of the population
mean µ using 95% confidence level.
 
3. Given: n = 10; = 82.5; s = 3. The parent population is normally
distributed. Use the 95% confidence level to find the interval estimate
for µ.
 
4. Given: n = 25; = 15; s = 5. The parent population is normally
distributed. Use the 95% confidence level to find the interval estimate
for µ.
 
5. In a survey of 300 random households in a particular village,
mothers have been asked if they use cellphones to communicate.
There are 76 who have said YES. Use a 95% confidence to estimate the
proportion of all mothers who use the cellphone to communicate.

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