Business Statistics

8 Business Statistics

Using sample statistic

(x)

to

estimate population parameter (

µ

)

Population parameter

(µ)

Computing sample statistic

(x)

Selecting a random

sample from a

population

A descriptive measure computed from a sample is called a statistic. For example, a mean cal-

culated from this sample is called a statistic. In statistics, a sample is collected in such a way that it is

a true estimate of the population parameter. In other words, the sample statistic provides an estimate

about the population parameter. These are generally denoted by Roman letters like sample mean (

x

),

sample variance (s

2

), and sample standard deviation (s). ...