GIGAMIND

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115 CFA
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115.020.20.01 Reading 7 - 1. The Nature of Statistics

1. The Nature of Statistics

a. distinguish between descriptive statistics and inferential statistics, between a population and a sample, and among the types of measurement scales;

b. define a parameter, a sample statistic, and a frequency distribution;

What are the two different processes of statistics?
1. Descriptive - describe the important aspects of data sets that have been collected
2. Inferential - used to draw conclusions about a large group from a smaller group actually observed

Why are samples often used in place of whole populations in statistics?
Because entire populations are often too large and can't all be observed because of time or cost or accessibility.

What is a subset of a population called?
A sample

In statistics, does the word "population" refer to people?
No

What does the ideal sample of a population consist of?
The ideal sample should be representative of the population.

In regards to a population, what is a parameter?
A parameter is a numerical quantity of an aspect of a population. E.g. the mean, median, etc

In regards to a sample, what is statistics?
In this context, statistics are parameters taken from a sample of a larger population.

What is an easy way to remember that "population" and "parameter" go together, and "sample" and "statistic" go together?
- "Population" and "parameter" both start with "p"
- "Sample" and "statistic" both start with "s"


Source:
  • CFA