Statist Literacy In your own words, carefully explain the
To explain: The meanings of terms: point estimate, critical value, maximal margin of error, confidence level, and confidence interval.
Explanation of Solution
Point estimate:
When a parameter is being estimated, the estimate can be either a single number or it can be a range of scores. Point estimate is a single number used to estimate a population parameter.
Critical value:
In hypothesis testing, we compare the value of the some test statistic with a critical value; we accept or reject the null hypothesis depending on which of the values is more extreme. The critical value of the test is the borderline between accepting and rejecting the null hypothesis. The critical value depends on the significance level and type of test (one-sided or two- sided).
Maximal margin of error:
The margin of error using
Confidence level:
The confidence level is the percentage of all possible samples that can be expected to include the true population parameter. For a confidence level c, the critical value
Confidence interval:
The sample mean x is the best point estimate of the true value of
For example confidence interval for
Where,
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Chapter 8 Solutions
Understanding Basic Statistics