Statistical Inference

The process of drawing inferences about larger group (Population) on the basis of sample information is called Statistical Inference. Statistical Inference is traditional divided into two parts.

Estimation of parameters Testing of hypothesis

In the above first we estimate population parameter by using sample data while in second part we test hypothesis about population on the basis of sample information.

Estimation:
The numerical quantity of unknown parameter is called estimation.

Estimator:
The formula which is used to calculate the value of unknown parameter is called estimator.

Estimation:
The process of calculating the value of unknown parameter by using certain rules or procedure is known as estimation.

Point Estimation:
When a single value is calculated from sample data to find unknown parameter is called point estimate. The process is called point estimation. For example =30. is estimator of Interval Estimation: .

Interval estimation is the process by which the value of unknown parameter is calculated is calculated from sample in an interval in a range i.e . The true value parameter lie in this range. For example. 3<X<5 An interval estimate is generally denoted by (L , U) where L is the lower limit of the interval U is the upper limit of the interval. Confidence Interval . It is an interval which is constructed from sample values and how much we are confident that the value of unknown Parameter lying in this interval confidence Interval contains two values, the lower L & upper U I.e. (L,U). 95% Confidence Interval for Population mean. = 95% means that we are 95% confident that the value of unknown population means lying in the interval. Why Confidence Interval is usually preferred to Point Estimation. The point estimate gives a single value of the parameter (pop mean) while the C.I is a range constructed the sample values in which we say that the true lying in this range so there is more chance the true value will value lie in this range as compared to a single mean. Example: If we are interested in the height of BBA 1st students and if a sample of size n is taken and height of 10 students recorded the mean obtained 63 inches Now it better to say that the true mean height of BBA 1st range from 60 to 65 inches rather than lying that it is 63 inches.

Un biasedness. An estimator say is said to be unbiased if its expected value is equal to its true value say . i.e E( ) = Then is unbiased estimator of If E( ) If E( ) > If E( ) < then is biased estimator of then positively based. is negatively based.

Confidence Limits: The limits of confidence interval are generally called confidence limits. An interval estimation is generally denoted by (L,U) where L is the lower confidence limit and U is the upper confidence limit of the interval.