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2.3 Summary

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    A statistical model assumes that data are realisations of random variables. For a parametric model, a set of assumptions are then made about the probability distributions of these random variables.

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    The simplest assumptions are that the random variables are

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      Independent and

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      Identically distributed, according to a probability distribution with unknown parameter values.

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    Statistical inference involves the estimation of the unknown parameters in the probability distribution.

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    An estimator of a parameter is a random variable. An estimate of a parameter is a number.

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    A good estimator should be unbiased and consistent.

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    The sampling distribution of an estimator displays the distribution of the estimator across repeated samples of a given size.