ABSTRACT
This chapter discusses sampling distribution and uncertainty/accuracy of estimators and unbiasedness, consistency and efficiency of estimators. It describes p-value and the extent of data evidence against a null hypothesis and Interpretation of hypothesis test results. An automobile manufacturer claims that a newly developed model gets at least 28 miles to the gallon. In this problem the population is the set of all automobiles produced by the company. The Environmental Protection Agency investigates whether the company is exaggerating the performance of its new model. The main purpose of using a hypothesis test is to present strong evidence against an argument. An estimator is defined to be an efficient estimator if it has the smallest variance among unbiased estimators.
