Estimation of Parameter

Estimating Population Mean (μ) When σ is Known or When

n ≥ 30
• Statistical inference is making conclusion or
generalization about the population based on the study of
samples.
• Point estimate is a single value that estimates the
population parameter, such as as estimate for μ, or s as
estimate for σ.
• Interval estimate sometimes called confidence interval,
is a range or interval (with lower and upper limits) used to
estimate the population parameter.
Estimating Population Mean (μ) When σ is Known or When
n ≥ 30
• Confidence level refers to the probability that the
confidence interval contains the true population
parameter. Its value is confidence level = (1 - α) 100%.
where α = probability that the confidence interval does
not contain the true population parameter.

• Critical value is the value that indicates the point beyond

which lies the rejection region. This region does not
contain the true population parameter.
Fomula for interval estimate of population mean (μ) when
the population variance is known and when n ≥ 30.

     
x  za / 2      x  za / 2  
 n  n
where x = mean of a random sample of size n
σ = population standard deviation
n = sample size
zα/2 = z value that leaves an area α/2.
The values of zα/2 are listed below with the usual
confidence level used in estimating population mean.
Confidence level or
90% 95% 97% 98% 99%
(1-α) 100%
zα/2 1.64 1.96 2.17 2.33 2.58
  
From the formula, za / 2  n  is called margin error.
 
• Margin of error refers to the maximum acceptable
difference (determined by α) between the observed
sample statistics (mean or proportion) and the true
population parameter (mean or proportion).

Alternative Formula for Determining the Margin of Error:

upperconfidencelimit - lower confidencelimit

E
2
Example:
1. Compute the margin of error of the 95% confidence interval
estimate of μ when σ = 10 and n = 25

2. Compute the 98% confidence interval estimate of μ given the

following: σ = 10, n = 25, x = 42

3. A car company wants to estimate the miles-per-gallon rate of their

new car model. It was known through experience that similar models
have standard deviation of 4.5 miles-per-gallon. A random sample of
100 units of the new model showed a mean of 32 miles-per-gallon.
Construct a 97% confidence interval for the population mean miles-
per-gallon rate of the new car model.
 Estimating the Difference Between Two Population
Means
2 2 2 2
x  x  z
1 2 a/2
1  2

n1 n2
 
 1   2  x1  x 2  za / 2
1  2

n1 n2
Example:
1. Two groups of student in Grade 9 were subjected to two
different teaching techniques. After a month, they were given
exactly the same test. A random sample of 60 students were
selected in the first group and another random sample of 50
students were selected in the second group. The sampled
students in the first group made an average of 84 with
standard deviation of 8, while the sampled students in the
second group made an average of 78, with a standard
deviation of 6.Find a 95% confidence interval for the
difference in the population means.
Example:
2. Independent random samples were selected from two
populations. The sample means, known population variance,
and sample sizes are given in the following table:
Population 1 Population 2
Sample mean 34 38
Population variance 5 7
sample size 40 46

Find a 90% confidence interval for estimating difference in

the population means.
 A formula for sample size determination can be used
whenever the population variance is known, at a desired
margin error.
2
 za / 2 
n  
 E 
Where E = margin of error
σ = Population standard deviation
Example:
1. Find the minimum sample size required to estimate an
unknown population mean using the following given data.
a. Confidence level = 95%
Margin of Error = 75
σ = 250
b. Confidence level = 90%
Margin of Error = 0.891
σ2 = 9
Example:

2. A researcher wants to estimate the daily expenses of

college students. He wants a 99% confidence level and a 40
margin of error. How many students must he randomly select
if in the previous survey, σ = 99.50?
The t-Distribution
The t-distribution, just like the standard normal curve, is
bell-shaped and unimodal. It is symmetric about t = 0.
However, its variance is greater than 1. The z-statistics is
used n ≥ 30 when while t-statistics is used when n < 30.
 x  where x = sample mean
t s = standard deviation of
s μ
sample mean
= population mean

n n = sample size
Example:
1. What is the t-value when n=22 at α = 0.01?
2. What is the area between t0.02 and -t0.01?
3. A student researcher wants to determine whether the
mean score in mathematics of the 25 students in Grade 8
Section Newton is significantly different from the average of
the school which is 89. The mean and the standard deviation
of the scores of the students in Section Newton are 5 and 15,
respectively. Assume a 95% confidence level.
If n < 30 and standard deviation is unknown, the confidence
interval for population mean is:

 s   s 
x  ta / 2      x  ta / 2  
 n  n
where x = mean of a random sample of size n
s = sample standard deviation
n = sample size
tα/2 = t value at (1 - α/2)100% confidence level
to find the margin of error, use the formula:

 s 
E t a / 2  
 n
Example:
1. Compute the margin of error of the 90% confidence
interval estimate of μ when s = 5 and n = 16

2. Compute the 95% confidence interval estimate of μ given

the following: s = 9, n = 12, x = 27

3. A printer manufacturer wants to estimate the pages-per-

cartridge print rate of their new printer model. A random
sample of 10 units of the new printer model showed a mean
of 1400 pages-per-cartridge with a standard deviation of 20.
Construct a 98% confidence interval to estimate the pages-
per-cartridge rate of new printer model.
Example:
4. Compute the margin of error of the 99% confidence level,
s = 21, n = 15

5. Compute the margin of error of the 98% confidence level,

s = 15, n = 21

6. Compute the 99% confidence interval estimate of μ given

the following: x = 28 s = 12, n = 11

7. Compute the 90% confidence interval estimate of μ given

the following: x = 45 s = 8, n = 16
Estimating the Difference Between Two Population
Means
2 2 2 2
x  x  t
1 2 a/2
s1 s2
n1 n2
 
  1   2  x1  x 2  ta / 2
s1 s2

n1 n2
Example:
1. Independent random samples were selected from
population 1 and 2 which passes the following data:
Population 1 Population 2
x1 = 6.95 x2 = 4.92
s1 = 2.5 s2 = 1.2
n1 = 20 n2 = 15
Find a 95% confidence interval for estimating the difference
of the true population means assuming that the population
variance are unknown and unequal.
Example:
2. Consider the following samples taken from two different
population which passes the following data:
Population 1 Population 2
x1 = 80.42 x2 = 80
s12 = 43.54 s22 = 17.5
n1 = 12 n2 = 9
Find a 95% confidence interval for estimating the difference
of the true population means.
Population Proportion
 A point estimator of the population proportion p is
given by the statistic.
x
pˆ 
n
Where p̂ = sample proportion
x = number of elementd in the sample having the
same characteristics
n = sample size
Example:
1. In a random sample of 120 teachers. 48 of them have
masters degree. Find the value of p̂

2. Out of the 150 randomly selected people in the mall, 45 of

them were students. Compute the sample proportion.
 The Central limit theorem for sample proportion led to
the following formula. This formula can be used to calculate
probabilities for the sample proportion. The formula can be
used only if np>5 and nq>5.
pˆ  p
z
Where p̂ = sample proportion pq
p = population proportion
n = sample size n
q =1-p
Example:
1. If 15% of the batteries produced a daily by a company is
defective, What is the probability of randomly selecting 70
batteries and finding 14 or more of them defective?
Estimating Population Proportion (p) for Large Sample size

ˆ qˆ
p ˆ qˆ
p
ˆ  za / 2
p ˆ  za / 2
 p p
n n
where p̂ = sample proportion
q̂ = 1 p̂
n = sample size
zα/2 = z value that leaves an area α/2.
Estimating Population Proportion (p) for Large Sample size
• Margin error:

ˆ qˆ
p
za / 2
n
Confidence level or
90% 95% 97% 98% 99%
(1-α) 100%
zα/2 1.64 1.96 2.17 2.33 2.58
Example:
1. Compute the margin of error of the 98% confidence
interval estimate of p when p̂ = 0.2 and n = 36.

2. Compute the 90% confidence interval estimate of p

given the following: p̂ = 0.65 and n = 50.

3. A biologist wants to estimate the proportion of male rats.

He collected 60 rats from the rice field and found that 38%
are males. Compute the 95% confidence interval estimate
of proportion of male rats.
Thank You