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STATPROB Point and Interval Estimation

Point estimation provides a single value from a sample to estimate an unknown population parameter. Interval estimation provides a range of values that is likely to contain the true population parameter based on a confidence level. The document provides examples of using point estimates from a sample to approximate the population mean height and blood pressure. It then defines key terms related to interval estimation such as confidence level, confidence interval, and critical value. The final example shows how to calculate a 95% confidence interval for a population mean when the population variance is known using the sample mean, size, variance, and z-score.

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Rhica Jhane Mabida
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174 views3 pages

STATPROB Point and Interval Estimation

Point estimation provides a single value from a sample to estimate an unknown population parameter. Interval estimation provides a range of values that is likely to contain the true population parameter based on a confidence level. The document provides examples of using point estimates from a sample to approximate the population mean height and blood pressure. It then defines key terms related to interval estimation such as confidence level, confidence interval, and critical value. The final example shows how to calculate a 95% confidence interval for a population mean when the population variance is known using the sample mean, size, variance, and z-score.

Uploaded by

Rhica Jhane Mabida
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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POINT AND INTERVAL ESTIMATION

Point Estimation is the process of finding a single value, called point estimate, from a random sample of
the population, to approximate a population parameter.

Example 1│ 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 for
the mean height of the students and got 165cm.

Here, 165 cm is not a good point estimate of the population mean. The teacher should have randomly
selected the members of his sample from the entire population using either a simple random sampling
or systematic random sampling.

Example 2│ The following are the systolic blood pressures of all teachers in a private high school.

120 110 120 130 120


130 112 125 120 130
120 120 130 110 120
140 115 125 130 115
145 120 123 140 130
110 140 140 120 120
160 120 135 130 125
130 130 140 120 110
125 150 125 110 125
115 120 130 120 130

Compute the population mean.

∑𝑥 6,280
𝜇= = = 125.6
𝑁 50

Assume that the following systolic blood pressures were randomly selected from the 50 observations.
Total:
x x x x x
120 112 120 130 120
140 115 130 110 130
145 140 123 140 115
110 150 140 120 130
130 120 130 120 130
Total: 645 637 643 620 625

∑𝑥 645 + 637 + 643 + 620 + 625


𝑥𝑏𝑎𝑟 = = = 126.8
𝑛 25

The sample mean 126.8 is still different from the population mean μ=125.6
Interval Estimation

Confidence level refers to the probability that the confidence interval contains the true population
parameter.

Confidence level = (1 − 𝛼)100%


where α = probability that the confidence interval does not contain the true population
parameter.

Confidence interval –a range of values within which the population mean is most likely to be located
Critical value –is the value that indicates the point beyond which lies the rejection region. This region
does not contain the true population parameter.

Interval Estimate of Population mean with known variance

Formula for interval estimate of population mean when population variance is known and n≥30.

𝜎 𝜎
𝑥𝑏𝑎𝑟 − 𝑧𝛼 < 𝜇 < 𝑥𝑏𝑎𝑟 + 𝑧𝛼
2 √𝑛 2 √𝑛

where,
xbar =mean of a random sample of size n
n = sample size
σ =population standard deviation
𝛼
𝑧𝛼 = z value at (1 − 2 )
2

𝜎
𝐸 = 𝑧𝛼 (margin of error)
2 √𝑛
𝑥𝑏𝑎𝑟 − 𝐸 = the lower confidence limit
𝑥𝑏𝑎𝑟 + 𝐸 = the upper confidence limit

𝑥𝑏𝑎𝑟 − 𝐸 < 𝜇 < 𝑥𝑏𝑎𝑟 + 𝐸

If 𝑛 < 30, the original population should be normally distributed and the sample is drawn at
random.
The values at each end of the interval are called confidence limits. The value at the left endpoint
of the interval is the lower confidence limit and the value at the right endpoint of the interval is the
upper confidence limit. Between these limits lies the true population parameter.
Example 1 │ The mean score of a random sample of 49 G11 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 Grade 11 students.
b. Find the lower and upper confidence limits.

Solution

Step 1. Find the value of 𝑧𝛼 .


2
Given 𝑥𝑏𝑎𝑟 = 78, 𝜎 2 = 0.16, 𝑛 = 49.
Confidence level is 95%
(1 − 𝛼)100% = 95%
(1 − 𝛼)1 = .95
(1 − 𝛼) = .95
𝛼 = 0.05
𝛼
2
= 0.025

Subtract 0.025 from 0.5


0.5 − 0.025 = 0.475 𝑜𝑟 0.4750

Step 2. Find σ, then find the margin of error.

𝜎 = √𝜎 2
= √0.16
= 0.4
𝜎
𝐸 = 𝑧𝛼
2 √𝑛
0.4
= 1.96 ( )
√49
= 0.112

Step 3. Substitute the values of xbar and E in the confidence interval

𝑥𝑏𝑎𝑟 − 𝐸 < 𝜇 < 𝑥𝑏𝑎𝑟 + 𝐸


78 − 0.112 < 𝜇 < 78 + 0.112
78.888 < 𝜇 < 79.112
78.89 < 𝜇 < 79.112

Lower confidence limit = 77.89


Upper confidence limit = 78.11

Interpretation:
The researcher is 95% confident that the sample mean 78 differs from the population mean μ 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.

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