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‡ Statistical inference is the branch of statistics which
deals with uncertainty in decision making and
provides a basis for making scientific decisions.
Types of Estimates
°e can make two types of estimates about the
population: Point Estimate and Interval Estimate.
Point Estimate: A point estimate is the sample
statistic that is used to estimate the population
parameter.
For Example- A production manager¶s statement that
he would be able to produce 20000 units in the next
month is a point estimate.
Interval Estimate: It is the range of values within a
 researcher or an employee can say with some
confidence that the population parameter falls.
This range is called monfidenme interval.
For Example- If the production manager states that
he would be able to produce 19000 to 21000 units
, he is making an interval estimate.
And this range (19000, 21000) is called
confidence interval.
Parameter: The statistical constants of the population
i.e. mean, variance etc. are usually referred to as
parameters.
Statistim: The statistical measures computed from the
sample observations alone e.g. mean, variance of the
sample etc. are known as statistics.
Sampling Distribution of a Statistims: Let us draw a
sample of size n from a finite population of size N,
then the total number of possible samples is
N!
N
C = k (say)
n n!(N r n)!
For each of these samples drawn, compute some
statistics say t. Let t1, t2, t3, «. tn be the values of
statistic for each of these k samples. The set of the
statistic so obtained, one for each sample, is called
sampling distribution of the statistims.
Here the values t1, t2,t3,«,tn is sampling
distribution of the statistic t. °e can compute
statistical constants like mean, variance, etc. for the
sampling distribution of the statistic t. For example-
t 1 å t 2 å t 3 ,...., t n
Mean E(t) t
k
üariance is

t
2
i t
Var(t) 
k

t
2
Standard Deviation is i t
 Var(t) 
k

Standard Error: The standard deviation of the

sampling distribution of a statistics is known as
Standard Error.
. .  Var(t)
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‡ °hile estimating population mean, sample size n can be
determined from the z formula for sample mean. The z
formula for sample mean is
x ȝ
z , ( x  ȝ)  is called sampling error.
ı 
 
 n
Sample size for
estimating z 2 .° 2 z 2 .° 2
population mean therefor n   2
( x  ȝ) 2

‡ A population has a S.D. of 4.2 and sampling error of 2.4.

Determine the sample size to estimate the mean of the
population with 95% confidence level? (z= 1.96)
Sample size for estimating population proportion p
z 2 . pq
n
E2
A consumer electronic company wants to determine the job
satisfaction levels of its employees. For this, they ask a simple
question, are you satisfied with your job? It was estimated before the
study that no more than 30% of the employees would answer yes.
°hat should be the sample size for this company to estimate
population proportion to ensure 95% confidence in results, and to be
within 0.04 of the true population proportion. (z=1.96)

(1.96) 2 .(0.3).(0.7)
n 504.18
(0.04) 2