POINT AND INTERVAL
ESTIMATION
LESSON 4.1
OBJECTIVES:
1. illustrate point and interval estimations;
2. distinguish between point and interval
estimation
3. identify point estimator for the population
mean;
OBJECTIVES:
4. compute for the point estimator for the population
mean;
5. identify the appropriate form of the confidence interval
estimator for the population mean when the population
variance is known; and
6. compute for the confidence interval estimate based on
the appropriate form of the estimator for the population
mean
POINT ESTIMATION
- The process of finding a single value,
called point estimate, from a random
sample of the population, to
approximate a population parameter.
POINT ESTIMATION
- The sample mean is the point estimate
of the population mean and is the point
estimate of population variance
Example 1:
The sample mean is 45.12
and the population mean is 46.1.
Here, the point estimate is the
single value 45.12.
Example 2:
A teacher wanted to determine the average
height of Grade 9 students in their school.
What he did was to go to one of the eight
sections in Grade 9 and then took their
heights. He computed a mean height of the
students and got 165 cm.
It is better to approximate the population
parameter by determining a range of values
within which the population mean is most
likely to be located. This range of values is
called confidence interval.
In approximating the population mean by
determining a range of values within which
the population mean is most likely to be
located, confidence levels are used. The
confidence levels of 90%, 95%, and 99%
are usually chosen.
Confidence intervals use interval estimate
to define a range of values that includes
the parameter being estimated with a
specified level of confidence.
Confidence Level
- Confidence level refers to the probability that the
confidence interval contains the true population
parameter.
The confidence level =
where: probability that the confidence interval does not
contain the true population parameter.
- The value of alpha corresponds to the level of
significance. The value of alpha can be arbitrarily
chosen. Any number between 0 and 1 can be used for
alpha but 0.10m 0.05, and 0.01 are the ones that are
commonly used.
- A 95% confidence level implies that the probability of
the confidence interval containing the true population
parameter is 95%.
Critical Value
- is the value that indicates the point beyond
which lies the rejection region. This region
does not contain the true population
parameter.
Critical Value
- The value of can be found in the Areas
Under the Normal Curve table. In hypothesis
testing, if the absolute value of your test
statistic is greater than the critical value,
reject the null hypothesis.
Interval Estimate of Population
Mean with Known Variance
- Formula for interval estimate of population mean when
population variance is known and
where:
mean of a random sample size of
sample size
population standard deviation =
value at confidence level
The mean of a random sample of
size is usually different from the
population mean The difference which
is added to and subtracted from the
sample mean in the computation of
confidence interval is considered an
error. In the formula for confidence
interval its is equal to .
The confidence interval can be
written as:
where:
population mean
margin of error ()
the lower confidence limit
the upper confidence limit
The values at each end of the interval
are called confidence limits. The value at
the end left-end point of the interval is
the lower confidence limit and the value
at the right end-point of the interval is
the upper confidence limit. Between
these limits lies the true population
parameter.
Example 3:
The mean score of a random sample of 49
Grade 11 students who took the first periodic
test is calculated to be 78. The population
variance is known to be 0.16.
a. Find the 95% confidence interval for the
mean of the entire Grade 11 students.
b. Find the lower and upper confidence limits.
Steps:
1)Find the value of .
2)Find , then find the margin of error.
3)Substitute the values of and E in the
confidence interval
4)Interpret the answer/result.
Interpretation:
The researcher is 95% confident that
the sample mean differs from the
population mean by no more than 0.112 or
0.11. Also, the researcher is 95%
confident that the population mean 𝜇 is
between 77.89 and 78.11 when the mean
of the sample is 78.
Example 4:
Assuming normality, use the given confidence level
and sample data below to find the following.
a. margin of error
b. confidence interval for estimating the population
parameter
Given data:
99% confidence level
Common Confidence Levels with
Their Corresponding Reliability Factor
Confidence Level
99% 2.575
95% 1.96
90% 1.645
Sample Size for
Estimating Population Mean
The size of the sample is
important in estimating the
population mean . The
following formula can be used
to determine the appropriate
sample size.
Sample size for Estimating
where:
critical value based on the desired confidence
level
desired margin of error
population standard deviation
Example 5:
Find the minimum sample size required
to estimate an unknown population mean
using the following given data.
a. Confidence level = 95%
Margin of error = 75
250
Example 6:
Find the minimum sample size required
to estimate an unknown population mean
using the following given data.
b. Confidence level = 90%
Margin of error = 0.891
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