# Chapter 8

# Estimation of Population Parameters

**The focus of this chapter is the development of methods for finding point and interval estimates of population parameters. The topics covered are**:

- Point estimators for the population mean and variance
- Interval estimators for the mean of a normal population
- Interval estimators for the difference of means of two normal populations
- Interval estimators for the variance of a normal population
- Interval estimators for the ratio of variances of two normal populations
- Other estimation methods: method of moments and the method of maximum likelihood
- Point and interval estimators for the binomial parameter
- Prediction: estimation of a future observation

**Learning Outcomes**

After studying this chapter, the reader will be able to

- Understand the role of estimation in applied statistics.
- Determine the point and interval estimates for parameters of various discrete and continuous distributions.
- Understand the concept of a confidence coefficient and interpret confidence intervals.
- Understand the distinction between statistical and practical significance.
- Apply statistical packages MINITAB, Microsoft Excel and JMP to determine confidence intervals of parameters of various distributions.

## 8.1 Introduction

We often encounter statistical problems of the following type: we have a large lot or population of objects such that, if a measurement were made on each object, we would have a distribution of these measurements. Since these measurements have not been ...

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