STAT 2507 Chapter Notes - Chapter 8: Statistical Inference, Variance, Sample Size Determination
17 Jan 2015
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Statistical inference is concerned with making decision or predictions about parameters- the numerical descriptive measures that characterize a population. (cid:7) type of inference: estimation: Estimating or predicting the value of the parameter. What is the most likely values of or p : hypothesis testing: Deciding about the value of a parameter based on some preconceived ideas. It does not systematically overestimate or underestimate the target parameter: of all the unbiased estimators, we prefer the estimator whose sampling distribution has the smallest spread or variability. (cid:7) measuring the goodness of an estimator. The distance between an estimate and the true of the parameter is the error of estimation. For a large sample, our unbiased estimators will have normal distribution. (cid:7) the margin of error. For unbiased estimators with normal sampling distribution, 95% of all point estimates will lie within 1. 96 standard deviations of the parameter of interest. Margin of error: the maximum error of estimation, calculated as.
