Describe, in your OWN words,the following terms and give an example of each. Poi
ID: 2915434 • Letter: D
Question
Describe, in your OWN words,the following terms and give an example of each.- Point estimate
- Confidence interval
- Unbiased estimator
- critical value
- Level of confidence
- Null hypothesis
- Type I error
- Hypothesis test
- Critical region
- Maximum error of estimate
- Point estimate
- Confidence interval
- Unbiased estimator
- critical value
- Level of confidence
- Null hypothesis
- Type I error
- Hypothesis test
- Critical region
- Maximum error of estimate
Explanation / Answer
If the average estimate of several Random Samples equals thepopulation parameter, the estimate is unbiased. For example, ifcredit card holders in a city were repetitively random sampled andquestioned what their account balances were as of a specific date,the average of the results across all samples would equal thepopulation parameter. If however, only credit card holders in oneneighborhood were sampled, the average of the sample estimateswould be a biased estimator of all account balances for the cityand would not equal the population parameter.
The term "Level Of Confidence" (LOC) is used todescribe the percentage of instances that a set of similarlyconstructed tests will capture the true mean (accuracy) ofthe system being tested within a specified range of values aroundthe measured accuracy value of each test.
The maximum error of estimate Eis the greatest possible distancebetween the point estimate and the value of the parameter it is,estimating for a given
level of confidence, c.