BUSS1020 Lecture Notes - Lecture 8: Central Limit Theorem, Confidence Interval, Interval Estimation

• School: University of Sydney
• Department: Business Studies
• Course: BUSS1020
• Professor: Erick Li

Document Summary

You estimate population parameters by using either point estimates or interval estimates. A point estimate is the value of a single sample statistic, such as a sample mean. A confidence interval estimate is a range of numbers, called an interval, constructed around the point estimate. The confidence interval is constructed such that the probability that the interval includes the population parameter is known. [the confidence interval considers variation in sample statistics; based on 1 sample; percentage less than 100%] Thus, it can be concluded that: a point estimate is a single number, a confidence interval provides additional information about the variability of the estimate. A confidence interval is a range of possible outcomes based on probability distributions (andrew) An interval estimate provides more information about a population parameter than does a point estimate. It tells us how much uncertainty is associated with a point estimate of a population parameter.