STAT 2507 Lecture Notes - Lecture 8: Bias Of An Estimator, Interval Estimation, Point Estimation
12 Mar 2018
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Document Summary
In the previous chapters we have learned everything we need to understand statistical inference and how it can be applied in practical situations. In this chapter we will learn more about estimation and how to infer about population parameters using point estimators. Statistical inference statistical inference is the process employed to make decisions or predictions about parameters. Examples of population parameters: population mean, population standard deviation, population proportion, p. The prediction of short- and long-term interest rates. The forecasting of the behaviour of the stock market. A consumer wants to estimate the selling price of her house before putting it on the market . Deciding on the effectiveness of a new drug. Estimation: is the process of estimating or predicting the value of a parameter of interest. Hypothesis testing: is the process of making decision about the value of a parameter based on some preconceived idea about what its value might be.
