7.4 Statistical Inference An interval estimator of the mean would use the available data to calculate 1wo points that are intended to enclose the true mean, An estimator © is a random variable and as such has a probability density function, which we illustrate in Figure 7.8, Here 6 represents the true value ofthe parameter. For example, @ might be the sample mean Mx, with the particular estimate being fix given in [7.1.1] and 6 would be the true value of the mean jax. Note in Figure 78 that the largest probability for 6 corresponds tothe peak in the probability density function. So swe would like the probability density function to be “peaky” near the true value of 6 This implies that the standard deviation should be small as well. This leads us to con- sider more carefully some features of estimators One desirable feature of an estimator i that it be unbiased Definition 7.7. If E[O] = 0, then the estimator is said (o be unbiased, Otherwise, itis said to be biased Definition 7.8. The bias of an estimator © is aa. An unbiased estimator would appear as shown in Figure 7.8, while a biased esti- mator would appear as shown in Figure 7.9, Te sample menn jx is unbiased fora sequence of independent, identically distributed random crabs each with tre mean i that is ae Flix] 5 Zxo]- 73 01 No Px= bx (7.4.1.2) pati) ‘An example of a probability density function for an estimator