QMS 202 Chapter Notes - Chapter 10: Confidence Interval, Interval Estimation, Point Estimation
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We estimate population parameter using either point estimates or interval estimates. A point estimate is the value of a single sample statistic. 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 population parameter is located somewhere within the interval is known. Sample mean x, is a point estimate of the population mean . However the sample mean varies from sample to sample because it depends on the items selected in the sample. 10. 1 confidence interval estimation for the mean ( known) However if you take all possible samples of n and compute their different % confidence intervals, the % of the intervals will include the population mean, and only the rest % of them will not be included. In general, the level of confidence is symbolized by ( 1- ) x100%