What is the bootstrapping technique in statistics?

What is the bootstrapping technique in statistics?

The bootstrapping technique is a resampling method used to estimate the distribution of a statistic by repeatedly sampling with replacement from the data.

How does bootstrapping help in estimating confidence intervals?

Bootstrapping allows us to create many simulated samples from the original data, which helps in calculating confidence intervals by analyzing the variability of the statistic across these samples.

Can you give me an example of how to apply bootstrapping?

Sure! If you have a sample of data, you can randomly select observations with replacement to create new samples. For instance, if your original sample has 10 data points, you can create a new sample of 10 points by randomly picking from those 10, allowing for repeats.

What are the limitations of the bootstrapping technique?

Some limitations include that it may not perform well with small sample sizes or when the data is not representative of the population.