How to derive Population Parameter using Statistics?
Let us follow some steps to estimate the population parameter using Statistical values:
- Derive a sample from the Population. The sample should be random in nature.
- Calculate the values of sample statistics.
- Use the above results to estimate population parameters.
Now there are two techniques to estimate population parameters. They are as follows:
Point Estimate
A point estimate is a numerical quantity or a statistical value of a sample that is used to estimate population parameter. It is used to estimate the population parameter. Although it provides best estimates but the drawback is for large population size it can generate erroneous results.
Interval Estimate
As the name suggests, interval estimate focuses on the intervals. Using the statistical values we estimate the intervals in which most likely the population parameter will lie. The most commonly used technique is Confidence Interval. Confidence Interval is a probabilistic value that provides estimation that a population parameter might fall between the set of values that has been provided. It is to be noted that Interval Estimate works better for large population as compared to Point Estimate.
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
Contact Us