Statistical estimation is a method used to infer the characteristics of a population based on a sample. By analyzing data from a smaller group, statisticians can make educated guesses about the larger group, such as estimating the average height of all adults in a city using a sample of 100 individuals. There are two main types of statistical estimation: point estimation and interval estimation. Point estimation provides a single value as an estimate, while interval estimation gives a range of values, indicating the uncertainty around the estimate. Both methods are essential in fields like economics, healthcare, and social sciences.