01:960:285 Lecture Notes - Lecture 19: Binomial Distribution, Confidence Interval, Point Estimation

• School: Rutgers University
• Department: Statistics and Biostatistic
• Course: 01:960:285
• Professor: Shyam Moondra

Document Summary

All estimation done here is based on the fact that the normal can be used to approximate the binomial distribution when np and nq are both at least 5. Thus, the p that were talking about is the probability of success on a single trial from the binomial experiments. The best point estimate for p is p hat, the sample proportion: If the formula for z is divided by n in both the numerator and the denominator, then the formula for z becomes: Solving this for p to come up with a confidence interval, gives the maximum error of the estimate as: This is not, however, the formula that we will use. So we will replace the parameter by the statistic in the formula for the maximum error of the estimate. The maximum error of the estimate is given by the formula for e shown.