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Statistical estimation is the process of using sample data to estimate unknown population parameters. A point estimator provides a single estimate, while interval estimation provides a range that reflects uncertainty. Good estimators are often evaluated using properties such as bias, variance, consistency, and efficiency.
Bias represents systematic error, while variance represents sensitivity to different samples. In Machine Learning, high bias can lead to underfitting, while high variance can lead to overfitting.
import numpy as np
data = np.array([2400, 2600, 2500, 2700, 2300])
point_estimate = np.mean(data)
print("Point Estimate:", point_estimate)




As the number of observations increases, the sample average tends to get closer to the true population average, provided the observations satisfy appropriate conditions.
More data is NOT automatically better data.
import numpy as np
import matplotlib.pyplot as plt
np.random.seed(42)
tosses = np.random.choice([0, 1], size=10000)
running_average = np.cumsum(tosses) / np.arange(1, len(tosses) + 1)
plt.plot(running_average)
plt.axhline(0.5, linestyle="--")
plt.xlabel("Number of Tosses")
plt.ylabel("Proportion of Heads")
plt.title("Law of Large Numbers")
plt.show()
The Law of Large Numbers states that, under suitable conditions, as independent observations increase, the sample average converges toward the population expected value. It explains why larger representative samples give more stable estimates.



