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Estimation
• is an area of Inferential Statistics concerned
with trying to determine the true value of the
Estimation population parameters.
• Estimator – any statistic whose value is used to
estimate an unknown parameter. The realized
value of an estimator is the estimate.

Point Estimation of the Mean, Standard

Estimation Deviation and Proportion
• Point estimate – is a single value used to represent the
• Statistics are used to estimate the parameters
parameter of interest.
Parameter Statistic
• Interval estimate – is a rule that tells us how to calculate two
numbers based on a sample date, forming an interval within ∑ 𝑥
𝑋=
which the parameter is expected to lie. (a, b) – interval Population Mean, 𝜇 𝑛
estimate or confidence interval.
𝑛∑ 𝑥 − ∑ 𝑥
• The degree of certainty attached to an interval estimate for the Population Standard 𝑠=
Deviation, 𝜎 𝑛(𝑛 − 1)
unknown parameter is 𝟏 − 𝜶, called the level of confidence
or confidence coefficient Population Proportion, p 𝑝̂ =
𝑋 𝑛𝑜. 𝑜𝑓 𝑑𝑒𝑠𝑖𝑟𝑒𝑑 𝑜𝑢𝑡𝑐𝑜𝑚𝑒𝑠
=
𝑛 𝑛𝑜. 𝑜𝑓 𝑠𝑎𝑚𝑝𝑙𝑒 𝑒𝑙𝑒𝑚𝑒𝑛𝑡𝑠
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Parameter or Statistic Example

Tell whether the given value is a statistic or a parameter (exer 3.2 p.138) • The number of incorrect answers on a true or false test for
1. The city of Manila is politically divided into 6 legislative a sample of 15 students were recorded as follows: 2, 1, 3, 0,
districts. 1, 3, 6, 0, 3, 3, 5, 2, 1, 4, 2. Find a good point estimate each
2. The Philippines consists of 7,107 islands. for the mean, standard deviation and variance.
3. Fifty students who were randomly selected will participate in
a study on the effects of using calculators in learning
mathematics.
4. In a study concerning the economic status of employees in a

Interval Estimation Confidence Interval

An interval estimate is defined by two numbers, A confidence interval gives an estimated range of values
between which a population parameter is said to lie. which is likely to include an unknown population parameter,
the estimated range being calculated from a given set of
a≤μ≤b
sample data.
x 1 ≤ σ2 ≤ x2
If independent samples are taken repeatedly from the same
population, and a confidence interval calculated for each
sample, then a certain percentage (confidence level) of the
intervals will include the unknown population parameter.
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Interval Estimation of the Mean of

Examples
a Single Population
• A survey of the delivery time of 100 orders worth P20,000
Confidence interval for 𝝁, 𝝈 is known from Green Cab yielded a mean of 55 minutes with a
• If 𝑥̅ is the mean of a random sample 𝑛 from a population with standard deviation of 12 minutes. Assuming that the
known variance, a 1 − 𝛼 100% level of confidence interval 𝜇 delivery time follows a normal distribution, construct
is given by a. 95% confidence interval for the true mean.
𝜎 𝜎
𝑥̅ − 𝑧 < 𝜇 < 𝑥̅ + 𝑧 b. 99% confidence interval for the true mean.
𝑛 𝑛
where 𝑛 ≥ 30

Interval Estimation of the Mean of

a Single Population
Confidence interval for 𝝁, 𝝈 is unknown
• If 𝑥̅ and 𝑠 are the mean and SD respectively, of a random sample
𝑛 < 30 from a population with unknown variance, a 1 − 𝛼 100%
level of confidence interval 𝜇 is given by
𝑠 𝑠
𝑥̅ − 𝑡 < 𝜇 < 𝑥̅ + 𝑡
𝑛 𝑛
where 𝑡 t-value with 𝑣 = 𝑛 − 1 degree of freedom.
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Error and Sample Size in Estimating the

Examples
Population Mean
• The contents of 7 similar containers of sulfuric acid are 9.8,
10.2, 10.4, 9.8, 10.0, 10.2 and 9.6 liters. Find a 95% Error is computed by
𝜎
confidence interval for the mean content of all such 𝑒=𝑧
containers, assuming an approximate normal distribution 𝑛
for containers contents.
while sample size is
𝜎
𝑛= 𝑧
𝑒

Examples
• A random sample of 100 PUJ shows that a jeepney is driven
on the average 24,500 km/year, with a standard deviation
of 3,900 kms. What can we assert with 99% confidence
about the possible size of our error if we estimate the
average number of km. driven by jeepney drivers to be
24,500 km/year?
Examples
• In a study of physical attractiveness and mental disorders
231 subjects were rated for attractiveness, a the resulting
mean and standard deviation are 3.94 and 0.75
respectively. Determine the sample size necessary to
estimate the sample mean, assuming you want a 95%
confidence interval and a
a. margin of error of 0.05.
b. margin of error of 0.50.
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Proportion Examples
Point estimator of the population proportion p is given by the 1. In a random sample of 120 books, 30 of them are novels.
statistic Estimate the proportion of novel books.
𝑥
𝑝̂ = 2. Out of the 180 randomly selected people in the airport, 72 of
𝑛
them were overseas Filipino workers. Estimate the proportion
𝑝̂ = 𝑠𝑎𝑚𝑝𝑙𝑒 𝑝𝑟𝑜𝑝𝑜𝑟𝑡𝑖𝑜𝑛 of the overseas Filipino workers
𝑥 = 𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑒𝑙𝑒𝑚𝑒𝑛𝑡𝑠 𝑖𝑛 𝑡ℎ𝑒 𝑠𝑎𝑚𝑝𝑙𝑒 ℎ𝑎𝑣𝑖𝑛𝑔 𝑡ℎ𝑒 𝑠𝑎𝑚𝑒 𝑐ℎ𝑎𝑟𝑎𝑐𝑡𝑒𝑟𝑖𝑠𝑡𝑖𝑐𝑠 3. In a certain class 5 out of 45 students are left-handed.
𝑛 = 𝑠𝑎𝑚𝑝𝑙𝑒 𝑠𝑖𝑧𝑒 Estimate the proportion of right-handed students.

Interval Estimation of the

Population Proportion
Examples
In a survey, 1000 Grade 7 students were asked if they read
• If 𝑝̂ and are the mean and SD respectively, a 1 − 𝛼 100%
storybooks. There were 318 who said yes.
level of confidence interval 𝑝 is given by a. What proportion of the students does not read
𝑝̂ 𝑞 𝑝̂ 𝑞 storybooks?
𝑝̂ − 𝑍 < 𝑝 < 𝑝̂ + 𝑍 b. Use 96% confidence interval to determine the proportion
𝑛 𝑛 of all Grade 7 students who does not read storybooks.
where: 𝑞 = 1 − 𝑝̂
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• An interval estimate, called a confidence interval, is a range of

values that is used to estimate a parameter. This estimate may or
may not contain the true parameter value.

• The confidence level of an interval estimate of a parameter is the

probability that the interval estimate contains the parameter. It
describes what percentage of intervals from many different
samples contain the unknown population parameter