Chapter 4

ESTIMATION OF PARAMETERS
 UNDERSTANDING THE POINT ESTIMATE
OF A POPULATION MEAN
 1. What do you call the set of all people, objects, events, or ideas
you want to investigate?
A. Sample B. population C. Data D. Statistics
 2. A sample refers to _________ of a population.
A. a subset B. a list C. a description D. another name
 3. What is the mean of 13,27,29, 17 and 14?
A. 29 B. 28 C. 20 D. 13
 4. What do you call a number that describes a population
characteristic?
A. sample statistic B. parameter C. variable D. decimal
 Which of the following symbols denotes the population mean?
A. X B. C. µ D. s
6. Which of the following symbols denotes population
standard deviation?
a. µ b. x c. d. s

7. In statistics, error refers to:

a. mistake resulting in wrong decisions
b. mistake resulting from computations
c. difference between two parameter values
d. difference between an observed value and a
parameter
Lesson 1: Understanding the Point Estimate
of a Population Mean
Point Estimate – is a specific numerical value
of a population parameter.
Interval Estimate – is a range of values that
may contain the parameter of a population.
Column Column Column Column Column Column Column Column Column Column
1 2 3 4 5 6 7 8 9 10
Group Group Group Group Group Group Group Group Group Group
A B C D E F G H I J
20 25 19 22 25 21 19 23 25 23
18 21 23 25 19 26 28 20 19 20
25 26 15 14 19 18 20 18 22 24
22 25 18 19 20 23 21 20 23 19
18 17 20 22 23 21 19 15 16 20
23 24 21 20 19 19 20 22 25 20
20 22 23 21 19 26 23 22 25 20
19 20 18 18 20 22 20 19 20 22
Step 1: Find the mean of each random
sample
Step 2: Compute the mean of the means
Step 3: Interpret the result
 More on coco juice
Sample Sample Sample Sample Sample Sample Sample Sample Sample Sample
1 2 3 4 5 6 7 8 9 10

500 498 497 503 499 497 497 497 497 495

500 500 495 494 498 500 500 500 500 497

497 497 502 496 497 497 497 497 497 495

501 495 500 497 497 500 500 495 497 497

502 497 497 499 496 497 497 499 500 500

496 497 496 495 497 497 500 500 496 497

499.33 497.33 497.83 497.33 497.33 498 498.5 498 497.83 496.83

Task:
1. Look at the 60 bottles of coconut juice as consisting of 10 columns and 6
rows
2. Compute the means of the column samples
3. What is the overall mean? This value is also an estimate of the population
 Mean of the means = 497.83

 Variance (s2) : s2 = ∑ (X - X)2

 n-1

=(499.33- 497.83)2 + (497.33- 497.83)2 + (497.83- 497.83)2 + (497.33 -497.83) 2 +

(497.33 -497.83)2+(498 -497.83)2+ (498.5-497.83)2 + (498 -497.83)2 + (497.83 -497.83)
2 + (496.83 -497.83) 2

= (1.5)2 + (-0.5)+ (0)+ (-0.5)+ (

)
Variance (s2) : s2 = ∑ (X - X)2
 n-1
Standard Deviation (s): s = √ ∑ (X - X)2
n-1
Where:
∑ = sum of
X = column mean
X = over all mean
N= number of cases
Lesson 2: Computing the Interval Estimates
for the Population Mean
Example 1.
A random sample of 100 students are asked how
much they spend for a meal during weekdays. The
average expense is found to be Php 75. Past
experiences has revealed that the population
standard deviation is Php 5. Find the point estimate
and the interval estimate of the population mean µ,
using the 95% confidence level.
Example 2.
Given the information: n = 50; σ = 0.5, and
X = 18.
Find:
a. The best point estimate of the population
mean
b. The 95% confidence interval of the
population mean.
Example 3. Forty graduating students have been
given the following grades in a Field Study. Assume
that they come from a population that has a shape
of a normal distribution and σ = 6. Estimate their
true grades using 99% confidence.
92 84 93 90 92 93 94 90 90 94
87 83 95 85 87 85 95 84 89 91
89 93 87 83 87 80 90 84 83 82
80 90 83 80 89 88 81 81 93 90
Example 4.
Mang Pedro uses the kaing to assess his harvest of
mangoes. After he has used a certain kind of fertilizer, the
mangoes yield the following per kaing.
100 92 110 112 90 98 97 106 100 100
90 98 120 108 96 92 95 98 92 102
88 102 98 88 89 90 102 100 100 97
102 100 100 86 87 100 105 97 93 96
89 98 96 96 92 100 98 98 92 100
Consider each kaing (a group) a random sample. From
past harvests, the population standard deviation was observed
to be 8 mangoes. Find the point and the interval estimates of
the population mean µ per kaing, using 95% confidence.
Lesson 3. Computing the Point Estimate
of the Population Proportion ρ
Proportion – is a fraction expression
with the number of favourable responses
in the numerator and the total number of
respondents in the denominator.
Example 1.
Jason noted that every weekend, a group of athletes
jog in a nearby park. On a particular day, he observed
that there were 20 runners and that 8 of them were
female. He observed the joggers for six weeks, noting
their number and their gender. His data consist of the
following.
Week 1st 2nd 3rd 4th 5th 6th
Male 12 15 12 10 8 9
Female 8 10 6 10 12 15
Total 20 25 18 20 20 24
A random selection of school children were asked whether they
Like (1), Do not like (0), or Cannot decide (2) whether they like
or not, a new kind of snack served by the school cafeteria. The
responses are shown as follows:
1 0 1 1 1 1 2 2 0 1
1 1 0 0 1 1 1 0 1 1
1 2 1 1 1 1 1 1 1 1
0 1 0 1 1 1 0 0 0 0
2 1 2 2 2 1 1 2 2 0
2 1 2 2 2 1 0 2 0 2
1. What is the proportion of respondents who like the new snack?
2. What is the proportion of respondents who do not like the new snack?
3. What is the proportion of respondents who cannot decide?
1. A survey of 1200 citizens showed that 715 trust the
president. Compute a 95% confidence interval for the
proportion of all citizens who trust the president.

2. In a survey of 458 random households, people take pride

in discussing their methods of environmental protection.
236 manage their trash by separating biodegradables.
Biodegradables are converted into fertilizers while non-
biodegradables are disposed of properly. Use a 95%
confidence to estimate the proportion of all households who
have good practices of trash management.
Let’s Practice! 2. Compute the population
1. Find the proportions proportion interval estimate
p and q for each of the ff. given n, p and the confidence
level.
a. X = 135, n = 378
a. n = 300, p = 0.40,
b. X = 234, n = 512 95% confidence
c. X = 256, n = 624 b. n = 500, p = 0.23,
d. X = 314, n = 850 95% confidence
e. X = 450, n = 1260 c. n = 710, p = 0.63,
99% confidence
Lesson 4: Understanding Confidence Level
and Sample Size
Example 1.
Anthony wants to estimate the mean weight µ, in
kilograms of all Grade 1 pupils in an elementary
school. He wants to be 99% confident that the
estimate of µ is accurate to within 0.05 kg. From a
previous study, the standard deviation of the
weights of the target population was 0.5 kg. What
sample size does he need?