OMIS 2010 Study Guide - Statistical Parameter, Statistic, Point Estimation

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

Document Summary

The objective is to determine the approximate value of a population partameter on the basis of a sample statistic. Eg the sample mean is used to estimate the population mean. Therefoe, the sample mean is the estimator of the population mean. The value of the sample mean is the estimate. Disadvantages to point estimator: estimate will be wrong (eg probability that a continuous random variable will be equal to a number is 0. In general, we want to use statistics with the most desirable qualities: unbiased estimator- of a population parameter, the expected value is equal to the parameter. We use variance to guage closeness (eg v(xbar)= o^2/n, v(phat)=p(1-p)/n: relative efficiency- if there are two unbiased estimators of a parameter, the one whose variance is smaller is said to be relatively more efficient. Estimating the population mean when the population standard deviation is known.