ABSTRACT
We will divide the discussion into the estimation of a single number such as a mean or standard deviation, or the estimation of a range such as a confidence interval. At the most basic level, the definition of an estimator involves the distinction between a sample and a population. In general, we assume that we have a random variable (X) with some distribution function. Next, we assume that we want to estimate something about that population, for example, we may be interested in estimating the mean of the population or probability that the outcome will lie between two numbers. In a farm-planning model, we may be interested in estimating the expected return for a particular crop. In a regression context, we may be interested in estimating the average effect of price or income on the quantity of goods consumed. This estimation is
for
on a sample of drawn from the population instead of the population itself.
