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Inferential Statistics

This document discusses inferential statistics and sampling distributions. It can be divided into two main branches: estimation and hypothesis testing. Estimation includes point estimation and interval estimation. The concept of sampling distributions forms the basis for both estimation and hypothesis testing. A sampling distribution is the probability distribution of any statistic from a sample, such as the mean or proportion. There are two types of sampling: with replacement and without replacement. The shape and properties of a sampling distribution depend on factors like the sample size and population size.

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0% found this document useful (0 votes)
60 views3 pages

Inferential Statistics

This document discusses inferential statistics and sampling distributions. It can be divided into two main branches: estimation and hypothesis testing. Estimation includes point estimation and interval estimation. The concept of sampling distributions forms the basis for both estimation and hypothesis testing. A sampling distribution is the probability distribution of any statistic from a sample, such as the mean or proportion. There are two types of sampling: with replacement and without replacement. The shape and properties of a sampling distribution depend on factors like the sample size and population size.

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waqas azam
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INFERENTIAL STATISTICS

That branch of Statistics which enables us to draw conclusions or inferences about population on the
basis of real data collected on sample basis. In this regard, the first point to be noted is that statistical
inference can be divided into two main branches --- estimation, and hypothesis-testing. Estimation itself
can be further divided into two branches --- point estimation, and interval estimation

The second important point is that the concept of sampling distributions forms the basis for both
estimation and hypothesis-testing,

SAMPLING DISTRIBUTION

The probability distribution of any statistic (such as the mean, the standard deviation, the proportion of
successes in a sample, etc.) is known as its sampling distribution. In this regard, the first point to be
noted is that there are two ways of sampling --- sampling with replacement, and sampling without
replacement. In case of a finite population containing N elements, the total number of possible samples
of size n that can be drawn from this population with replacement is Nn.

In case of a finite population containing N elements, the total number of possible samples of size n that
can be drawn from this population without replacement.

We illustrate the concept of the sampling distribution of with the help of the following

example:

5Let us examine the case of an annual Ministry of Transport test to which all cars, irrespective of age,
have to be submitted. The test looks for faulty breaks, steering, lights and suspension, and it is
discovered after the first year that approximately the same numbers of cars have 0, 1, 2, 3, or 4 faults.

MEAN AND VARIANCE OF THE POPULATION DISTRIBUTION see graph

Sampling
Standard Error:The square root of the variance is the standard deviation, and the standard deviation of a sampling

distribution is termed as its.

Property No.1
In the case of sampling with replacement as well as in the case of sampling without replacement, we have:
In this example:

Property No.2:see copy


is known as the finite population correction (fpc). The point to be noted is that, if the sample size n is much smaller than the
population size N, then is approximately equal to 1, and, as such, the fpc is not required. Hence, in sampling from a finite
population, we apply the fpc only if the sample size is greater than 5% of the population size. Next, we consider the shape of
the sampling distribution of X. As indicated by the line chart, the above sampling distribution is absolutely symmetric and
triangular. But let us consider what will happen to the shape of the sampling distribution with if the sample size is increased. If
in the car tests instead of taking samples of 2 we had taken all possible samples of size 3, our sampling distribution would
contain 53 = 125 sample means

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