Parameter vs. Statistic

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What is a parameter?

Back

A parameter is a numerical value that summarizes a characteristic of a population. It is a fixed value that does not change.

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What is a statistic?

Back

A statistic is a numerical value that summarizes a characteristic of a sample. It can vary depending on the sample selected.

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Example of a parameter: 44% of US governors are Republicans. What does this represent?

Back

This represents a parameter because it describes a characteristic of the entire population of governors.

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Example of a statistic: In a survey, 43% of high school students said their mother taught them about managing money. What does this represent?

Back

This represents a statistic because it is based on a sample of high school students.

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What is the difference between a population and a sample?

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A population includes all members of a specified group, while a sample is a subset of the population used to represent the whole.

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Why is it important to distinguish between parameters and statistics?

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Distinguishing between parameters and statistics is crucial for understanding the reliability and applicability of data in research.

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If 62 of 97 passengers survived an event, is this a parameter or statistic?

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This is a parameter because it describes the survival rate of all passengers involved in that specific event.

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What does it mean if a statistic is biased?

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A biased statistic is one that systematically overestimates or underestimates the true population parameter due to flawed sampling methods.

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How can you determine if a value is a parameter or statistic in a study?

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Check if the value refers to the entire population (parameter) or just a sample (statistic).

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What is an example of a parameter in a business context?

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The average salary of all employees in a company is a parameter.