Statistics Definitions > Point Estimate
What is a Point Estimate
- The sample standard deviation (s) is a point estimate of the population standard deviation (σ).
- The sample mean (̄x) is a point estimate of the population mean, μ
- The sample variance (s2 is a point estimate of the population variance (σ2).
In more formal terms, the estimate occurs as a result of point estimation applied to a set of sample data. Points are single values, in comparison to interval estimates, which are a range of values. For example, a confidence interval is one example of an interval estimate.
Finding the Estimates
Four of the most common ways to find an estimate:
- The Method of Moments: is based on the law of large numbers and uses relatively simple equations to find point estimates. Is often not too accurate and has a tendency to be biased. More info.
- Maximum Likelihood: uses a model (for example, the normal distribution) and uses the values in the model to maximize a likelihood function. This results in the most likely parameter for the inputs selected. More info.
- Bayes Estimators: minimize the average risk (an expectation of random variables). More info.
- Best Unbiased Estimators: several unbiased estimators can be used to approximate a parameter. Which one is “best” depends on what parameter you are trying to find. For example, with variance, the estimator with the smallest variance is “best”. More info.
Need help with a homework or test question? With Chegg Study, you can get step-by-step solutions to your questions from an expert in the field. Your first 30 minutes with a Chegg tutor is free!
Comments? Need to post a correction? Please post a comment on our Facebook page.