Lecture notes Commercial maths (Scma)

INTRODUCTION
TO ESTIMATION
CHAPTER 1




By Setsweke Nkwane, Commercial Mathematics, Estimation

, Concepts of Estimation
Statistical inference is the process by which we acquire informatio
and draw conclusions about populations from samples.
There are two general procedures for making inferences abou
population:
Estimation and Hypothesis testing.
■ With Estimation procedures, we determine the approxima
values of population parameters on the basis of a samp
statistics, and while
■ With Hypothesis Testing procedures, we must accept or reje
assertions (claims) about populations and/or their parameters.
By Setsweke Nkwane, Commercial Mathematics, Estimation

, Continues…
The objective of estimation is to determine the approximate value of
population parameter on the basis of a sample statistic.
E.g., the sample mean (𝑥 ) is employed to estimate the population mean (𝜇).
There are two types of estimators:




■ Point Estimator


■ Interval Estimator




By Setsweke Nkwane, Commercial Mathematics, Estimation