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Understanding Statistical Inference

Statistical inference involves drawing conclusions about a population based on a sample. It has two branches: estimation and hypothesis testing. Estimation estimates unknown population parameters using sample data, and can be point estimation or interval estimation. Hypothesis testing checks claims about the population by examining if sample data provides evidence against the claim. Confidence intervals estimate parameters with a probability statement about the interval containing the true parameter value.

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35 views17 pages

Understanding Statistical Inference

Statistical inference involves drawing conclusions about a population based on a sample. It has two branches: estimation and hypothesis testing. Estimation estimates unknown population parameters using sample data, and can be point estimation or interval estimation. Hypothesis testing checks claims about the population by examining if sample data provides evidence against the claim. Confidence intervals estimate parameters with a probability statement about the interval containing the true parameter value.

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depressed potato
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We take content rights seriously. If you suspect this is your content, claim it here.
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Statistical inference

Statistical inference
• A procedure of drawing conclusions about a
population based on the data obtained from a
sample chosen from it.
Statistical inference
Branches of Statistical inference

• Estimation
• Testing of hypothesis
Estimation

• It is the process of estimating the unknown


value of population parameter by using the
sample observations.
Testing of hypothesis

• In hypothesis testing, we begin with a claim


about the population (we will call the null
hypothesis), and we check whether or not the
data obtained from the sample provide
evidence AGAINST this claim.
Estimation
• ESTIMATE
A numerical value of unknown parameter obtained
by using a rule or formula
• ESTIMATOR
A rule or formula used to get an estimate
Estimation
• Point estimation
• Interval estimation
Point estimation

• In point estimation, we estimate an unknown


parameter using a single number that is
calculated from the sample data.
Interval estimation

• In interval estimation, we estimate an


unknown parameter using an interval of
values that is likely to contain the true value
of that parameter (and state how confident
we are that this interval indeed captures the
true value of the parameter).
Confidence interval
• A confidence interval estimate of unknown
parameter Ѳ is an interval computed from a
random sample of n values with a statement
of how confident we are that the interval
contains the unkhown parameter Ѳ.
P(L< Ѳ<U)=1- α
• 1- α is called level of confidence or confidence
coefficient
• L is lower confidence limit
• U is upper confidence limit
• 1- α is the probability that the interval (L,U)
contains the parameter.
Level of significnce
α is level of significance
Level of significance is the probability that the
parameter will lie outside the interval (L,U)
Confidence interval estimate for
population mean μ when σ is known.
s s
x - Za < m < x + Za
2 n 2 n

Where
x…… sample mean
n…… sample size
σ…… population standard deviation
Table of z distribution
• The mean weight of tablets of a certain dreug
is unknown with a standard deviation of
[Link] estimate the mean weight of whole
lot a sample of 100 tablets selected randomly
showed a mean weight of [Link]
99% confidence interval for population mean.
• n=100
x
– =50.15
σ=0.4
99% confidence interval for population mean μ= ?
1-α=0.99
α=1-0.99=0.01
α/2=0.01/2=0.005
zα/2=z0.005=2.575
s s
x - Za < m < x + Za
2 n 2 n

0.4 0.4
50.15 - 2.575 < m < 50.15 + 2.575
100 100

50.05<μ <50.25

This means that we are 99%confident that the population mean lies
between 50.05 and 50.25

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