BUSS1020 Lecture Notes - Lecture 8: Statistical Inference, Standard Deviation, Point Estimation

• School: University of Sydney
• Department: Business Studies
• Course: BUSS1020
• Professor: Parinaz Ezzati

Document Summary

Unlike clt which is deductive reasoning where a conclusion is based on taking something that is true in general and applying it to something specific, sometimes we have to used. Inductive reasoning by using inferential statistics which uses sample results to estimate unknown population parameters. These can be estimated via point estimates or interval. Point estimate is the value of a single sample statistic such as a sample mean. A confidence interval estimate is a range of numbers called an interval, constructed around the point estimate. It is constructed such that the probability that the interval includes the population parameter is known. It provides more info about population parameter than point estimate: when you construct a confidence interval estimate, you indicate the confidence of correctly estimating the value of the population parameter, . Confidence interval estimate for the mean given .