1.1 Definitions of statistics, probability, and key terms  (Page 2/26)

Key terms

In statistics, we generally want to study a population . You can think of a population as a collection of persons, things, or objects under study. To study the population, we select a sample . The idea of sampling is to select a portion (or subset) of the larger population and study that portion (the sample) to gain information about the population. Data are the result of sampling from a population.

Because it takes a lot of time and money to examine an entire population, sampling is a very practical technique. If you wished to compute the overall grade point average at your school, it would make sense to select a sample of students who attend the school. The data collected from the sample would be the students' grade point averages. In presidential elections, opinion poll samples of 1,000–2,000 people are taken. The opinion poll is supposed to represent the views of the people in the entire country. Manufacturers of canned carbonated drinks take samples to determine if a 16 ounce can contains 16 ounces of carbonated drink.

From the sample data, we can calculate a statistic. A statistic is a number that represents a property of the sample. For example, if we consider one math class to be a sample of the population of all math classes, then the average number of points earned by students in that one math class at the end of the term is an example of a statistic. The statistic is an estimate of a population parameter. A parameter is a number that is a property of the population. Since we considered all math classes to be the population, then the average number of points earned per student over all the math classes is an example of a parameter.

One of the main concerns in the field of statistics is how accurately a statistic estimates a parameter. The accuracy really depends on how well the sample represents the population. The sample must contain the characteristics of the population in order to be a representative sample . We are interested in both the sample statistic and the population parameter in inferential statistics. In a later chapter, we will use the sample statistic to test the validity of the established population parameter.

A variable , notated by capital letters such as X and Y , is a characteristic of interest for each person or thing in a population. Variables may be numerical or categorical . Numerical variables take on values with equal units such as weight in pounds and time in hours. Categorical variables place the person or thing into a category. If we let X equal the number of points earned by one math student at the end of a term, then X is a numerical variable. If we let Y be a person's party affiliation, then some examples of Y include Republican, Democrat, and Independent. Y is a categorical variable. We could do some math with values of X (calculate the average number of points earned, for example), but it makes no sense to do math with values of Y (calculating an average party affiliation makes no sense).

Data    are the actual values of the variable. They may be numbers or they may be words. Datum is a single value.