Estimation Flashcards
Central limit theorem
If we were to take repeat samples and calculate the mean each time…
Those sample means will be Normally distributed around the true population mean
…even if the population itself is not Normally distributed
Distribution of sample means
Normal distribution
Standard error
Standard deviation of the sampling distribution
indicates how different a sample mean is likely to be from the population mean
It tells us the precision of estimation
Standard deviation is for
Describing
Standard error is used for
Estimating
Smaller standard error of the mean
More precise the estimate of our mean- closer it is likely to be to the true population mean
Standard error of the mean equation
Standard deviation/ square root of sample size
precision is affected by these two things
how variable our data are (the SD) and how large our sample is (n)
The other thing being held constant…
The bigger the SD -the bigger the standard error
The bigger the sample size -the smaller the standard error
Confidence interval
We wish to estimate a population mean…
We have our observed estimate: the sample mean
We have our estimate of its precision: the standard error of the mean
We can use these two things and properties of the Normal distribution to calculate a range of values we can be confident includes the true mean
95% confidence interval for the mean
Mean + 1.96 * standard error
95% of the time our confidence interval will encapsulate the true (unknown) population value we are trying to estimate
Range of values within which the true mean lies 95% of the time- statistically significant if it doesn’t include 0 or 1
Factors affecting that confidence interval width:
Variability in the sample (SD)
Sample size (n)
The desired level of confidence
- typically we use 95% but it could be 90%, 99%, etc.
Greater variability of SE
Wider interval
Greater sample size
Narrower interval
Greater confidence level
Wider interval
If 95% confidence interval includes null value
Result would not be significant and p-value is greater than 0.05