Difference between Parameters and Statistics
Parameters describe a population, while statistics describe a sample drawn from that population. Parameters are usually unknown and need to be estimated, while statistics are calculated from observed sample data.
Characteristics | Parameters | Statistic |
---|---|---|
Definition | It refers to whole population | It refers to sample |
Value | It is a fixed value | It is a variable value |
Nature | It is generally unknown in nature | It is a known value derived from the sample |
Use | Gain insights about the whole population | Used to estimate the parameters |
Parameters and Statistics
Statistics and parameters are two fundamental concepts in statistical theory. Although they may sound equal, there is a sharp difference between the two. One is used to represent the population, and the other is used to represent the sample. Now we will focus on the sample and population:
Population: A population refers to the whole data. It is the dataset that the statisticians use to derive conclusions or gain insights about the data.
Sample: Sample refers to the small dataset. It is considered to be a subset of population. Since population can be huge and may be difficult to examine, Statisticians usually consider a subset or sample, perform Statistical analysis and derive conclusions about the Population.
It is to be noted that the sample to be selected should be random in nature. If the subgroup or sample is not randomly selected, it may produce biased results.
Table of Content
- Parameters
- Statistics
- Relationship Between Sample and Population
- How to derive Population Parameter using Statistics?
- Types of Parameters and Statistics
- Difference between Parameters and Statistics
- Solved Questions on Parameters and Statistics
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