MGMT 1050 Chapter Notes - Chapter 10: Household Income, Statistical Parameter, Interval Estimation
Document Summary
Objective: to determine the approximate value of a population parameter on the basis of a sample statistic: ex. the sample mean is supposed to be a good estimate of the population mean. Point estimator: draws inferences about a population by estimating the value of an unknown parameter using a single value or point: drawbacks: 1. Virtually certain that the estimate will be wrong (especially in continuous data) 2. need to know how close the estimator is to the parameter. 3. doesn"t have the capacity to reflect the effects of larger sample sizes: usually large sample sizes will produce more accurate results because it contains more information, cannot be used to infer with point estimator. Interval estimator: draws inferences about a population by estimating the value of an unknown parameter using an interval: affected by sample size. E: a statistics professor wants to estimate the mean summer income of his second year business student.
