The second major topic in statistical theory is interval estimation. Intervals allow us to indicate our level of uncertainty in the population parameter. It goes a step beyond simple point estimation, providing a set of reasonable values for the parameter of interest.

How do we create these intervals? What allows us to create a general procedure for calculating the interval?

Objectives

By the end of this module, the student will

• understand pivotal quantities and why they are important
• create interval estimators in the Normal case
• estimate intervals using bootstrapping methods
• evaluate the intervals in terms of coverage and width

Readings

All readings are from our official textbook.

• Sections 5.4 to 5.7
• Guided Thought Questions

Example Scripts

The following R script provide some additional practice in statistical computing. Consider these to be required activities.

• Coverage
• Estimation Example

Statistical Computing Activity

• SCA 3: Coverage

Assignment

• Assignment 3