BSB123 Lecture Notes - Lecture 12: Confidence Interval, Interval Estimation, Point Estimation
Document Summary
Recall: hypothesis testing is for determining the strength of evidence against the hypothesised value of a parameter. Estimation is the process of using sample data to determine the value of a population parameter, for which we have little or no idea of the true value. In bsb123, we will focus on the estimation of the population mean ( ). Point estimate uses a single number to estimate the true population parameter. An interval estimate allows a margin for error. Degree of certainty that we have of the interval containing the true population parameter. The degree of certainty is called the level of confidence. The interval estimate is therefore also called confidence interval. One of the major applications of statistics is estimating population parameters from sample statistics. For example, a poll may seek to estimate the proportion of adult residents of a city that support a proposition to build a new sports stadium.
