Statistical Methods

Unit 3 - Estimation

3.4.Point estimate & Utilities of standard Error
Point Estimate

• Sample mean is the point estimator of population mean.
• Sample proportion is the point estimator of population proportion.

Utilities of Standard Error
Standard Error (S. E) is a measure variability of the statistic. It is useful in estimation and testing of hypothesis.

• Standard Error is used to decide the efficiency and consistency of the statistic as an estimator.
• In interval estimation, Standard Error is to write down the confidence intervals.
• In testing of hypothesis, standard error of the test statistic is used to standardize the distribution of the test statistics.