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