Economics

Point Estimation definition/determination/importance/example

Point Estimation

The Point Estimate is a population measure where a single value is used to evaluate this quantification, that is, a fixed point of the sample is used to estimate the desired value. An estimate is called a specific value of the estimator. An estimator is a statistic with equal dimension to the vector of the parameters, its realizations are used to estimate. Point Estimation definition

Estimation is called the observed and calculated value of the estimator in the selected sample. The space for the parameter is the set of all possible values.

How to determine the specific stagnation?

In some cases, the value of an unexplored population measure cannot be determined, considering that population values ​​are a process to follow where a lot of time and money have to be invested to study each unit.

The verification of the estimate will be achieved using statistical deduction , supporting the information included in a provisional sample that is not composed and is unique. Point Estimation definition

The estimate is in the value of the measure through a single value, derived from a certain formula. That is, if you try to estimate the mean height of an established group of people, you can obtain a sample and give the mean height of the individuals as a point estimate.

Importance of the point estimator

The importance of the estimator is that it is unalterable, calm and efficient in sampling. The estimation lies in trying to establish the population parameter that is unknown and starting a casual sample of simple size.

The objective of the estimation is to approximate the value of the unknown measure, this consists of the time of the execution of an algorithm, that is why it uses the information of the sample through an estimator, this is in charge of evaluating and evaluating. Point Estimation definition

The usual established estimators are:

  • The sample mean : evaluates the theoretical measure of a variable.
  • The sample proportion : it is used to calculate the simple casual proportion of the variable.
  • Sample variance: it is used to consider the theoretical variance of a population, the variance of a sample can also be used.

Examples of Point Estimation

  1. The purpose of estimating measures is to characterize the populations from the information of the samples, a statistic is a function of the sample information.
  2. The estimate is the consequence of the value of the mean or the quantity that represents the population average to fraction or divide the sample data. Point Estimation definition
  3. The point estimate is the evaluation of the estimator on the fixed sample.

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