Unlocking Terms

A point estimate is a specific numerical value estimate of a parameter.  The best point estimate of the population mean is the sample mean.

An interval estimate of a parameter is an interval or a range of values used to estimate the parameter. This estimate may or may not contain the value of the parameter being estimated.

The  confidence level of an interval estimate of a parameter is the probability that the interval estimate will contain the parameter, assuming that a large number of samples are selected and that the estimation process on the same parameter is repeated.

A confidence interval is a specific interval estimate of a parameter determined by using data obtained from a sample and by using the specific confidence level of the estimate.


by: Marie Louissie Ynez U. Lavega