Enter the number of successes, the number of trials, and the confidence interval of the data set into this point estimate calculator to calculate the best point estimate. The calculator is found below the example.
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Point Estimate Formula
The following formula can be used to estimate the best point. This is considered the Wilson Estimation.
X = (S + z²/2) / (T + z²)
- Where S is the number of successes
- T is the number of trials
- z is the confidence interval
Point Estimate Definition
A point estimate is a term used to understand probability when a bias may be involved. For example, if there’s an event, say flipping a coin, the result over an infinite sample size should be even at 50/50. But what is that coin is weight to one side slightly. The result may turn to 40/60. A point estimate takes into account that bias in the form of a confidence interval and calculates the probability of getting one outcome.
How to calculate a point estimate
The following example is a step-by-step process of calculating a point estimate.
- First, we must determine which missing variables we need to calculate the point estimate. In this case, the variable would be S, the number of successes, T is the number of trials, z is the confidence interval.
- The next step is to find the values for all of those variables.
- Finally, enter all of the information into the formula or calculator above.
A point estimate is a term used to understand probability when a bias may be involved.