this is process of drawing conclusions about an underlying population based on a sample or subset of the data
statistical inference
what are the two major areas of statistical inference
estimation and hypothesis testing
this refers to estimating unknown population characteristics like the mean or proportion
estimation
this refers to accepting or rejecting a statement regarding a population characteristics
hypothesis testing
what is the difference of hypothesis testing and estimation
with estimation, no value of the parameter is assumed before the sample is collected while in hypothesis testing, a parameter value is designated or hypothesized before the collection of the sample data
what are the two types of estimates
point estimate and interval estimate
this is a type of estimate which refers to a numerical value computed from the data contained in a sample
point estimate
this is a procedure or a rule that tells how an estimate is computed based on the measurements contained in a sample; usually expressed as a mathematical formula
estimator
this is a type of estimate that we are willing to say with some degree of certainty, contains the parameter being estimated.
interval estimate
this refers to the degree of certainty in interval estimate
level of confidence or confidence coefficient
the level of confidence or confidence coefficient is denoted by
1-α
this consists of a single value of a statistic used as the best conjecture as to what the corresponding population value or parameter may be
point estimate
this refers to the bounds of confidence intervals
confidence limits
two-sided confidence interval
point estimate ± (critical value) × (standard error)
θ ± d
the margin of error can be reduced if:
-the sample standard deviation is
-the sample size is
-the confidence level is