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I need examples that I can understand for these terms: point estimate, confidence interval, unbiased estimate, critical
value, level of confidence, null hypothesis, type 1 error, hypothesis test, central region, and maximum error of error.
Examples used in daily life. I am in the medical field. I think I could understand the terms better by examples and
how it relates in health care.
Term
Point estimate
Definition
Example
It is a single value that is used to estimate
The sample mean bold sugar
the population parameter.
level x-bar is a point estimate of
the population mean blood
sugar level μ.
Confidence Interval
It is an interval which is used to express
Suppose for a sample of 120
the degree of uncertainty associated with
flies, the survival time has the
a sample statistic.
following data:
It gives an estimated range of values
n = 120,  = 18.3 and  = 5.2
which is likely to include an unknown
The 95% C. I. for the mean
population parameter, the estimated
survival time is 17.369 days 
range being calculated from a given set of
19.231 days.
sample data.
Unbiased estimator
Critical value(s)
If the mean of the sampling distribution of
The mean of the sample means
a statistic is equal to a population
is usually taken as an unbiased
parameter, that statistic is said to be an
estimate of the population
unbiased estimator of the parameter.
mean, since the two are equal
The critical value(s) for a hypothesis test is
The critical values for a two-
a threshold to which the value of the test
sided z- test for a population
statistic in a sample is compared to
mean heart rate, at 5% level of
determine whether or not the null
significance are -1.96 and +1.96
hypothesis is rejected.
The critical value for any hypothesis test
depends on the significance level at which
the test is carried out, and whether the
test is one-sided or two-sided.
Level of confidence
The confidence level is the probability
Suppose an opinion poll
value (1 – ) associated with a confidence
predicted that, if elections were
interval. It is often expressed as a
held today, the party in power
percentage.
would win 70% of the vote. If
the pollster attaches a 95%
confidence level to the estimate,
then it means that there is a
95% chance of the actual
percentage falling between 68%
and 72%
Null hypothesis
The claim made by the researcher with
For example, if a quality control
respect to a problem or issue in question
inspector believes that the mean
forms the Alternate hypothesis (Ha). The
diameter of a population of
opposite of this claim forms the Null
syringes produced by a process
hypothesis (H0). Thus, The null hypothesis
is 12.00 mm, then Ha:  = 12.00,
is chosen to be the opposite of the claim,
while H0 =  ≠ 12.00.
that is, opposite of what the researcher
hopes or believes is true.
Type I error
Type I error (The False Positive) is the
A student accused of copying in
error of rejecting a true null hypothesis
a medical examination when she
really did not
It is the process (usually in 5 steps) to
Suppose 60 tosses of a coin gave
determine whether to accept or reject a
38 Heads. We can formulate a
null hypothesis, based on sample data.
hypothesis as follows and do the
testing to make out if the coin is
Hypothesis test
biased:
H0: The coin is not biased, that is
p = 0.5
Ha: The coin is biased, that is
p ≠ 0.5
Critical region
The critical region or the rejection region
If the z- score for a sample is 2.1
is a set of values of the test statistic for
then the null hypothesis that the
which the null hypothesis is rejected in a
mean of the population is less
hypothesis test.
than a stated value will be
rejected at 95% level of
significance because the critical
z- score at this level is 1.96
Maximum error of
estimate
It is the greatest possible distance
If standard deviation s = 6 and
between the point estimate and the value
the sample size, n = 25, at 95%
of the parameter being estimated, at a
confidence level, the maximum
given confidence level
error of estimate is
E = z * s/n = 1.96 * 6/25
= 2.352.