Statistical inference deals with decision making and prediction based on sample data. In this Unit we will explore the basic concepts dealing with estimating population parameters and testing of hypotheses. The basic one and two sample methods discussed here will be used throughout the remainder of this course. A good understanding of the basic statistical approaches to estimation and hypothesis testing will allow you to extend your statistical toolbox with new methods.

Note that all of the statistical methods discussed here are aimed at analysis of continuous random variables. Discrete and categorical random variables will be discussed at the end of the next Unit.

1. To understand what is meant by parameter estimation.
2. To define the relationship between the size of the sample and the precision assigned to a parameter estimate.
3. To learn how to make statistical inferences about a population mean.
4. To understand the statistical impact of the different types of errors one can make in statistical inference.
5. To learn how to statistically test whether two populations could have the same means.
6. To learn how to statistically test whether two populations could have the same variances.