Introduction to Estimation

Prerequisites
Measures of Central Tendency, Variability

Learning Objectives

  1. Define statistic
  2. Define parameter
  3. Define point estimate
  4. Define interval estimate
  5. Define margin of error

One of the major applications of statistics is estimating population parameters from sample statistics . For example, a poll may seek to estimate the proportion of adult residents of a city that support a proposition to build a new sports stadium. This proportion is called a point estimate of the population proportion. It is called a point estimate because the estimate consists of a single value or point.

Point estimates are usually supplemented by interval estimates called confidence intervals . Confidence intervals are intervals constructed using a method that contains the population parameter a specified proportion of the time.