STAT 1100 Chapter Notes - Chapter 7: Thai Baht, Asteroid Family, Standard Deviation
Document Summary
In business you will need to make decisions based on lim- ited information. The most common practice is to inspect a few products and extend your conclusions to the entire production from there. The sampling error is the difference between an statistic s and its corresponding parameter p . Remember that the population mean - denoted by - is a parameter while the sample mean - denoted by x - is a statistic de ned to quantify the center of a population. The sampling error for the sample mean x is: If the population size is n and the sample size is n, we have then that: n(cid:88) i=1. We discussed in chapter 3 several techniques for sampling a population. Most of them introduced randomness in the process to eliminate bias in the sampling. Since all statistics are functions of the samples, like in the case of the sample mean, that implies that an statistic is a random variable.
