Lecture 2 highlights

More on Chapter 0

Population; sample; parameter; statistic; point estimate

Interval estimate: Example for normal data

 

Interpretation of an interval estimate

Hypothesis tests; null hypothesis; alternative hypothesis; test statistic;

Significance level = P(reject H0 when it is true); Power( ) = P(reject H0 when it is false)

Example for normal data

 

 

Parametric vs. nonparametric methods

 

 

Classes of methods: i) Binomial

ii) Permutation methods: Under H0, all permutations of the observations between groups are equally likely.  Generally used in along with ranks or scores.

iii) Bootstrap methods: Mimic sampling from the population by taking samples with replication from the data.

iv) Smoothing methods: Using local averaging, for example.

v) Non-least squares methods: L1 estimation, M estimation, etc.