Frequently Asked Questions on Parameters and Statistics
Why do we use Statistics ?
It is used to estimate the population parameters. For large size population, we use the statistical values to draw conclusion from the sample which gives an overview of the population.
Explain the law of large numbers
The Law of Large Numbers states that as the sample size increases the statistical mean becomes almost equal to population mean.
Give examples of statistics and parameters
The examples of Statistics are Sample Mean, Sample Variance, Sample Standard Deviation etc. The examples of Parameters include Population Mean, Population Variance, Population Standard Deviation.
How is hypothesis testing useful in estimating population parameters?
Hypothesis Testing is a powerful statistical inference technique that is used to estimate population parameters using statistical values and probabilistic curves to solve the scenarios.
What is sampling and mention some types of sampling.
Sampling is the process of selecting samples from a population. It is varying in nature. Some common Sampling Methods are:
- Simple random sampling.
- Systematic sampling.
- Stratified sampling.
- Cluster sampling
- Probabilistic Sampling
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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