A survey of nonprofit organizations showed that online fundraising has increased in the past year. You want to estimate the popu
lation mean one-time gift donation. Based on a random sample of 55 nonprofits, the mean of one-time gift donation is $125. The value $125 is:________. a. an interval estimate
b. a statistic
c. a parameter
d. a confidence interval
e. a point estimate
When an estimate for the unknown population parameter is expressed by a single value it is called a point estimate.
Example : If we wish to find the height of a very large group of students on the basis of a sample and we find it to be 64 inches. 64 inches is the point estimate.
<em>Similarly the value given is the point estimate.</em>
Point estimate of the population parameter provides as an estimate a single value calculated from the sample that is likely to be close in value to the unknown parameter. It is to be noted that a point estimate will not in general be equal to the population parameter as the random sample used is one of the many possible samples which could be chosen from the population.
