Applications of standard error, Applied Statistics

Assignment Help:

Applications of Standard Error

 

  1. Standard Error is used to test whether the difference between the sample statistic and the population parameter is significant or is due to sampling fluctuations.

  2. Standard Error is used to find the precision of the sample estimate of a population parameter. If a statistic θ is used to estimate the parameter, then precision of θ = 56_applications of standard error.png

  3.   It is used to find the interval estimate of a population parameter

 

 

Example 

 

A population consists of four numbers 3, 4, 2, 5. Consider all possible distinct samples of size two and verify that the population mean is equal to the mean of the sample means.

The population mean (μ) = (3 + 4 + 2 + 5) / 4 = 3.5

All possible distinct samples of size two and the corresponding sample means are shown in the following table.

Samples of Size Two and their Sample Means

Sample No.

Samples

Total of the sample values

Sample mean
 [Col. 3] ÷ 2


(1)

(2)

(3)

(4)

1

3,4

7

3.5

2

3,2

5

2.5

3

3,5

8

4.0

4

4,2

6

3.0

5

4,5

9

4.5

6

2,5

7

3.5

Total

...

...

21.0

[Sampling used in the above table is random sampling without replacement and the no. of samples = 4C2 = 6].

Mean of sample means = 21.0/6 = 3.5

Hence, the population mean = 3.5 = the mean of the sample means.


Related Discussions:- Applications of standard error

Probability, .1 Modern hotels and certain establishments make use of an ele...

.1 Modern hotels and certain establishments make use of an electronic door lock system. To open a door an electronic card is inserted into a slot. A green light indicates that the

Steps in anova, Steps in ANOVA The three steps which constitute the ana...

Steps in ANOVA The three steps which constitute the analysis of variance are as follows: To determine an estimate of the population variance from the variance that exi

Risk of portfolios, Risk of Portfolios So far, we have seen the applic...

Risk of Portfolios So far, we have seen the application of standard deviation in the context of risk in single investment. But usually most investors hold portfolios of securi

Index number of price for paasche’s method, Construct index numbers of pri...

Construct index numbers of price for the following data by applying: i)      Laspeyre’s method ii)     Paasche’s method iii)    Fisher’s Ideal Index number

Weighted arithmetic mean, Weighted Arithmetic Mean Another aspect...

Weighted Arithmetic Mean Another aspect to be considered is the importance we assign to each observation. The arithmetic mean as we calculated it so far gives equal

Plot diagnostic quantities, The data in the data frame compensation are fro...

The data in the data frame compensation are from Myers (1990), Classical andModern Regression with Applications (Second Edition)," Duxbury. The response y here is executive compens

Types of business forecasting , Types  of business forecasting  are genera...

Types  of business forecasting  are generally as follows: 1.      Sales  and Demand  forecasts 2.      Porduction  forecasts. 3.       Cost  Forecasts 4.       Financi

Determine the matrix of the transformation, Consider the linear transformat...

Consider the linear transformation (a) Find the image of (3 , -2 , 2) under T. (b) Does the vector (5, 3) belong to the range of T? (c) Determine the matrix of the transf

Classification of universe, Classification of Universe The universe may...

Classification of Universe The universe may be classified either on the basis of number of units and on the basis   of existence of units as is clear from the following chart :

Regression analysis, Of the 6,325 kindergarten students who participated in...

Of the 6,325 kindergarten students who participated in the study, almost half or 3,052 were eligible for a free lunch program. The categorical variable sesk (1 == free lunch, 2 = n

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd