Explain a parameter estimation problem with example
You take a taxi by the train station to the conference place. The taxi number is 20,922. How many taxis are there in the city?
Expert
This is a parameter estimation problem. Getting in exact taxi is a probabilistic event. Estimating the no. of taxis in the city from that place is a question of assumptions and statistical methodology. We will look at the probability of finding in taxi number 20,922 while there are N taxis in the city. It couldn’t be simpler; the probability of getting in any specific taxi is 1/N.
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