OMIS 2010 Chapter Notes - Chapter 10&11: Probability Distribution, Interval Estimation, Consistent Estimator

• School: York University
• Department: Operations Management and Information System
• Course: OMIS 2010
• Professor: Alan Marshall

Document Summary

Can make inferences about populations through estimations and hypothesis testing. Estimation: determine approx. value of population parameter on basis of sample statistic. Estimating population mean when population and standard deviation is known. Confidence level is probability that the interval includes the actual value of mew; 1 a is set close to one (between 0. 90-0. 99) Population mean is a fixed but unknown quantity; cannot interpret confidence interval estimate of mew as probability stamen about mew. Width of confidence interval estimate is a function of the population standard deviation, the confidence level and sample size. Larger proportions of confidence interval estimates will be correct in long run. Larger sample size provides more potential info = narrower interval. Sample distribution of sample median is normally distributed provided that population is normal. You can control width of interval by determining sample size necessary to produce narrow intervals.