CHAPTER 7 © Etgodicity Statistics, Estimation, and Simulation ‘Then sti = [xerox = 76) = 2 743 InteRVAL EstiMATorS In the previous section we considered point estimators, where a single value was com sidered a best estimate of a population or a random process parameter in some sense. terval estimators consider the error between the estimator and the true value of tie parameter being estimated. This error is expressed as an interval Definition 7.13. An interval estimator is (wo numbers between which the ran- ddom process parameter can be expected to fall witha certain level of confides The two numbers are called the confidence limits and are the end points of t confidence interval. A (1 — c)100 percent confidence interval is an interval thas hus a (I~ @)100 percent probability of containing the random process parar ter, The confidence level is the quantity (1 — and the level of significance ss the quantity «. Both the confidence level and the level of significance can be ex pressed in percent terms. The confidence level is sometimes called the cont- dence coefficient. ‘The standardized mean is expressed as iix- ifthe sample size Nis large, then most statisticians assume thatthe stands mean is normally distributed. This assumption of normality is made even ifthe Stand ‘deviation s unknown and the unbiased sample standard deviation s= Vx Ty (X(i) — fix)? va se subntted for oy: fs smal (ess than 30), the assumption s usually made thi issiple mean comes fom a normal population, In this case we have fig = px sIVN 4 where v=N=1 and Si given in[743:2]- The astbution of 7, is calle the Staten ntbuton, which a fancion ofthe parameter v=N—1 ued incalculating the santa devation. The parameter 5 clled the degrees of freedom and repress sate of independent samples. The Staden’s distibuton is symmetrical boas aa ono and is simiar tothe normal dstibution curve. The variance ofthe St Tainibuton depends on v, which s greater than one bot approaches one as N appa satuty The Surdentst isebution is tabulated in most books on sais, The purpose ofthe above discussion is to establish thatthe random variables x, have kaown probability density factions, namely, Zs normal with 220 meas we unit var type [a = Aco value off For =19