---
title: "Point/interval estimation; CI for accident proportion"
subject: "Probability and Statistics"
chapter: 7
key: "semester_5/probability_and_statistics:point-interval-estimation-accidents-ci"
source: https://www.bctengineer.com/q/semester_5/probability_and_statistics/point-interval-estimation-accidents-ci
site: BCT Engineering
---

# Point/interval estimation; CI for accident proportion

Probability and Statistics · Chapter 7: Inference concerning proportion

- Asked in: 2074 Asoj, 5 marks
- Video: [Confidence Intervals for Sample Proportions](https://www.youtube.com/watch?v=W_M1mH5Tqys) — searching4math
- Answer checked by Claude Sonnet 5.5 on 2026-10-14
- Page: https://www.bctengineer.com/q/semester_5/probability_and_statistics/point-interval-estimation-accidents-ci
- Whole chapter: https://www.bctengineer.com/md/semester_5/probability_and_statistics/chapter-7

## Question

Explain the concept of (i) point estimation and (ii) Interval estimation of population properties. In a random sample of 400 industrial accidents, it was found that 231 were due to at least partially to unsafe working condition. 95% confidence intervals for the corresponding true proportion.

## Short answer

Point estimation uses a single sample statistic (e.g., p̂ = 0.5775) to estimate the parameter. Interval estimation provides a range: p̂ ± z·SE. For n=400, 95% CI is (0.529, 0.626) for the true proportion of accidents partly due to unsafe conditions.

## Answer

#### (i) Point estimation

A single value computed from the sample is used as the estimate of the unknown population parameter. The sample mean x̄ estimates μ, the sample proportion p̂ estimates P, and s² estimates σ². A good point estimator is unbiased, consistent, efficient and sufficient. It gives no idea of the error involved.

#### (ii) Interval estimation

An interval (L, U) is computed so that it contains the parameter with a stated probability, the confidence level (1 − α). It is based on the point estimate and its standard error: estimate ± (critical value) × (standard error). For a proportion, the interval is p̂ ± z·√(p̂q̂/n).

#### 95% confidence interval for the true proportion

```text
n = 400, x = 231
p̂ = 231/400 = 0.5775,  q̂ = 0.4225
SE = √(p̂q̂/n) = √(0.5775×0.4225/400) = 0.0247
margin = 1.960 × 0.0247 = 0.0484
limits = 0.5775 ± 0.0484 = (0.5291, 0.6259)
```

**Answer: the 95% confidence interval for the true proportion of accidents partly due to unsafe working conditions is (0.529, 0.626), i.e. about 52.9% to 62.6%.**

## Check yourself

The answer's key points as multiple-choice questions, with the correct option and why.

1. What is point estimation?
   A. Giving a range that contains the parameter with stated probability
   B. Using a single sample value as the estimate of an unknown parameter
   C. Testing a claim about a parameter
   D. Finding the exact value of the parameter
   Answer: B. A point estimate is one number computed from the sample, such as x-bar for mu, and it does not show the size of the error. (Key point: Point estimation)

2. What general form does a confidence interval take?
   A. estimate / standard error
   B. estimate x critical value
   C. estimate +/- (critical value) x (standard error)
   D. estimate +/- sample size
   Answer: C. Intervals are built as point estimate plus and minus critical value times standard error. (Key point: Interval estimation)

3. For 231 of 400 accidents, what is the standard error of the sample proportion?
   A. sqrt(0.5775 x 0.4225 / 400) = 0.0247
   B. sqrt(0.5775 x 0.4225) = 0.494
   C. 0.5775 / 400 = 0.0014
   D. sqrt(0.5775 / 400) = 0.038
   Answer: A. SE = sqrt(p-hat q-hat / n), with p-hat = 231/400 = 0.5775. (Key point: Sample proportion and SE)

4. Which is the 95% confidence interval for the true proportion?
   A. (0.553, 0.602)
   B. (0.529, 0.626)
   C. (0.481, 0.674)
   D. (0.5775, 0.626)
   Answer: B. Margin = 1.96 x 0.0247 = 0.0484, so 0.5775 +/- 0.0484 = (0.529, 0.626). (Key point: 95% confidence interval result)

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