4.2 ESTIMATION AND HYPOTHESIS TESTING TWIN BRANCHES OF STATISTICAL INFERENCE 1. Estimation Estimation: the first step in statistical inference X: an estimator/statistic of the population parameter E(X), estimate: the particularnumerical value of the estimator sampling variation /sampling error: the variation in estimation from sample to sample. 2. Hypothesis testing In hypothesis testing we may have a prior judgment or expectation about what value a particularparameter may assume4.2 ESTIMATION AND HYPOTHESIS TESTING: TWIN BRANCHES OF STATISTICAL INFERENCE 1. Estimation Estimation: the first step in statistical inference. : an estimator/statistic of the population parameter E(X), estimate: the particular numerical value of the estimator sampling variation /sampling error: the variation in estimation from sample to sample. 2.Hypothesis testing In hypothesis testing we may have a prior judgment or expectation about what value a particular parameter may assume. X