Lecture 8 (estimation notes)

Question 1

explain Central Limit Theorem

Answer 1

If repeated random samples of size n are drawn from any population with mean and standard deviation, then as n increases, the sampling distribution of sample means will approach normally with mean and standard deviation

Question 2

Calculating the value or range of values of a pop. parameter based on sample information

Answer 2

Estimation

Question 3

the difference between an estimator’s expected value and the value of the parameter being expected

Answer 3

Bias

Question 4

The extent to which the sample outcomes are clustered around the mean of its sample size

• clustered values, have small SD means higher efficiency

Answer 4

Efficiency

Question 5

point estimation vs interval estimation

Answer 5

Point estimation - a single number is calculated from the sample and is used as the best estimate of some unknown pop. parameter

Interval estimation - selecting a two value
- The sample is used to identify a range or interval within which the pop. parameter is thought to lie, with a certain probability
- Information about the precision of a point estimate determines the width of an interval estimate
- Better to have a range because of uncertainty rather than a point estimate

Question 6

The probability that the interval contains the parameter

Answer 6

Confidence level

Question 7

the probability that the confidence interval will not contain the population value

Answer 7

Alpha Level