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Estimation and Confidence Intervals

Estimation and Confidence IntervalsFall 2001 Professor Paul GlassermanB6014: Managerial Statistics403 Uris HallProperties of Point Estimates1. We have already encountered twopoint estimators:thesamplemeanXis an estimatorof the population mean , and the sample proportion pis an estimator of the populationproportionp. These are called point estimates in contrast tointerval estimate is a single number (suc hasXor p) whereas an interval estimate gives arangelikely to contain the true value of the unknown What makes one estimator better than another? Is there some sense in whichXand pare the best possible estimates of andp, given the available data?

InExcel,thisformulaisevaluatedbythefunctionSTDEV. 3. Asthesamplesizen increases,s approachesthetruevalueσ.So,foralargesamplesize (n ≥ 30,say),X −µ s/ √ n ...

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