Estimating Data Parameters

Making inferences about a population based upon a random sample is a major task in statistical analysis. Statistical inference comprehends two inter-related problems: parameter estimation and test of hypotheses. In this chapter, we describe the estimation of several distribution parameters, using sample estimates that were presented as descriptive statistics in the preceding chapter. Because these descriptive statistics are single values, determined by appropriate formulas, they are called point estimates. Appendix C contains an introductory survey on how such point estimators are derived and which desirable properties they should have. In this chapter, we also introduce the notion and methodology of interval estimation. In this and later chapters, we always assume that we are dealing with random samples.

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