In this chapter, we take the simulation procedures that we have been working on and put them in a more formal (traditional) statistics framework. After completing this chapter, you should be able to:
This material, particularly the vocabulary and definitions, is most relevant for the research community. Data scientists, however, will encounter confidence intervals in their work and will benefit from a solid understanding, via resampling, of how they work.
The procedures we have discussed all involve establishing the possible error that occurs when we measure some parameter in a population by taking a sample from that population. The technical term for this procedure of establishing the possible error is a confidence interval. It is one way to measure the accuracy of a measurement. The statistic or the measurement itself is often called a point estimate.
A point estimate is a statistic, such as a mean, median, and percentile ...