Statistics and

Probability
Prepared by: Mr. Wilmar L. Pogoy
Estimation of
Parameters
What is Estimate?
Statistics and Probability

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Estimate

◈ it is a value or range of values

that approximates to the
population value.

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 Point Estimate Interval Estimate
A Point Estimate is a single value A Interval Estimate also called a
estimate for a population confidence interval, is a range of
parameter. The best point values used to estimate a
estimate of the population mean parameter.
µ is the sample mean x̅

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 Point Estimate
A Point Estimate is a single value estimate for a population parameter.
The best point estimate of the population mean µ is the sample mean x̅
To find the value of Point Estimate we will use this formula of sample
mean

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 Point Estimate
Example 1
Angela wanted to know the average grade of the students in
statistics. She interviewed 40 students and the results are shown below
80 90 What
81 is the mean
79 of the grades of the
84 students
89 in Statistics?
92 80
95 81 95 83
92 93 95 93
𝟖𝟎+𝟗𝟎+𝟖𝟏+...𝟕𝟓+𝟖𝟓
77 84 90 89 𝟒𝟎
78 89 84 86 𝟑𝟒𝟏𝟔
89 90 81 76 𝒙=
𝟒𝟎
85 89 89 81
82
78
84
91
79
75
83
85
𝒙 =𝟖𝟓 . 𝟒
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 Point Estimate
Example 2
A certain company claims that its bottled juice contains 320 ml of
orange juice. In order to have a point estimate and to know that the
company claim is true, study 10 random samples of 5 bottles and
determine the capacity in ml for each bottle. The results shown as
follows.
Sample 1 Sample 2 Sample 3 Sample 4 Sample 5 Sample 6 Sample 7 Sample 8 Sample 9 Sample
10
320 319 317 323 319 317 318 319 318 318
320 320 315 319 319 320 320 321 320 319
318 318 322 318 317 318 317 318 319 317
321 317 320 318 322 320 320 317 318 319
322 318 318 320 319 318 320 320 320 320
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 To solve the point estimate, we must solve the following:
1. Solve for the mean of each sample
2. Solve for the mean of all the sample means
Sample Sample Sample Sample Sample Sample Sample Sample Sample Sample
1 2 3 4 5 6 7 8 9 10
320 319 317 323 319 317 318 319 318 318
320 320 315 319 319 320 320 321 320 319
318 318 322 318 317 318 317 318 319 317
321 317 320 318 322 320 320 317 318 319
322 318 318 320 319 318 320 320 320 320
Sum 1601 1592 1592 1598 1596 1593 1597 1596 1595 1593
(ml)
Mean 320.2 318.4 318.4 319.6 319.2 318.6 319.4 319.2 319 318.6

𝑥=
∑ 𝑥 320.2+318.4+318. 4+319.6+319.2+318.6+319.4+319.2+319+318.6 3190.6
= = =319.06
𝑁 10 10 10
 ACTIVITY: Finding a Point Estimate
Problem 1
Market researchers use the number of sentences per advertisement
as a measure of readability for magazine advertisements. The following
represents a random sample of the number of sentences found in the
number of advertisements. Find a point estimate of the population mean

9 20 18 9 16 16 9 11 13 22 16 5 18 6 6 5 12 16
17 23 7 10 9 10 10 5 11 18 18 9 9 17 13 11 7 25
14 6 11 12 11 15 6 12 14 11 4 9 18 12 12 17 11 20

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Point Estimate

1.
2.

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 Z – values

z=1.74 45.91
z=2.18 48.54
z=2.69 49.64
z=3.00 49.87
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Problem involving z scores and normal curve
a.
0.5-0.4996=0.0004*100 = 0.04%
b.
z=
0.4962+0.4901 = 0.9863 * 250 = 247

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Problem involving z scores and normal curve

c.
A= * 100
A=9.18%

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 Interval Estimate
It is also called a confidence interval, is a range of
values used to estimate a parameter.
The confidence level of an interval estimate is the
probability that the interval estimate will contain
the true population parameter .

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 Critical Values
Is also known as confidence coefficients, are the z
values that is use in describing the characteristics of
a target population. When 𝝈 is known, z-values are
used

Z = ±1.65 at 90% confidence level

Z = ±1.96 at 95% confidence level
Z = ±2.58 at 99% confidence level
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 Margin of Error
It is the maximum difference between the observe
sample mean and the true value of the population
mean. It is express as:
Critical Values Population SD
Sample Size

The interval estimate is expressed as:

X̅ - E < µ < X̅ + E
(X̅ - E) serves as lower limit
(X̅ + E) serves as upper limit
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Example

1. A sample of size 50 was taken to estimate the

population mean. If the sample mean is 15 and
the population of standard deviation is 3.5,
determine the point and interval estimate of the
population mean at 95% confidence level
Solution: Listing of variables and compute the margin of
error.
X̅ =15 𝝈 = 3.5
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 Solution: Listing of variables and compute the margin of error.
X̅ =15 𝝈 = 3.5
n = 50 C.L = 95%
1. The confidence coefficient
1 . 96
) for 95% is Interpretation

2. The Margin of Error E is So that, the actual

IE = X̅-E < µ < X̅+E
𝜎 population mean
𝐸=𝑧𝑎 ( )
2 √ 𝑛 IE = 15-0.9702<µ< 15+0.9702 lies between
3.5
𝐸 =1 . 96 ( ) 14.0298 and
√ 50 15.9702
IE = 14.0298 <µ< 15.9702

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Example
2. To determine the weight of oranges, 100
oranges were weighted. The mean weight of the
sample is 150g. Previous studies show a
standard deviation of 40g. Find the interval
estimate of population mean µ using 95%
confidence level.
Solution: Listing of variables and compute the margin of
error.
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 Solution: Listing of variables and compute the margin of error.
X̅ =150 𝝈 = 40
n = 100 C.L = 95%
1. The confidence coefficient
1 . 96
) for 95% is Interpretation

2. The Margin of Error E is IE = X̅-E < µ < X̅+E So that, the

𝜎 interval estimate
𝐸=𝑧𝑎 ( )
2 √ 𝑛 IE = 150 - 7.84 <µ< 150 + 7.84 of the actual
40
𝐸 =1 . 96 ( ) population mean
√ 10 0 lies between
IE = 142.16 <µ< 157.84 142.16g and
150.84g
𝐸 =7 . 84
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ACTIVITY

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Activity
Problem 1: In a random sample of 2000 households, the
average income is $65,000 with the standard deviation of
$12,000. Find the interval Estimate of population mean µ
using 95% confidence level.

Problem 2: The operator of a telephone exchange is aware

that the population of the telephone call duration is
normally distributed with a standard deviation of 4
minutes. A random sample of 100 calls yields a mean
duration of 9.1 minutes. Find the interval estimate of
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Assignment
Problem:
A researcher wants to estimate the number of
hours that Senior High School spend in internet. A
sample of 40 Students was observed to have a mean
internet time of 3.5 hours. The population is
normally distributed with a population standard
deviation of 0.5 hours, find the 95% confidence
interval of the population mean.
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THANK YOU!

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 “
Everything in life could always be better, don’t settle
for less cause’ then you miss out on more.

A wise man once told that having a bad plan is

better than no plan at all.

Hardest choice requires strongest will

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“

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