Statistics is a branch of science focused on collecting, analyzing, and interpreting data to make informed decisions about groups, such as people or organizations. The term "data" refers to the information collected, which can be numerical measurements or responses from surveys. For instance, measuring the heights of ten college students or gathering their favorite ice cream flavors are both examples of data collection.
In statistics, it is often impractical to collect data from an entire group of interest, known as a population. Instead, researchers typically work with a smaller subset called a sample. For example, if one were to measure the heights of every college student in the United States, that would be a population. However, measuring the heights of just 100 students would represent a sample, which can provide insights about the larger population.
Understanding the distinction between population and sample is crucial. A population encompasses all members of a defined group, while a sample consists of a portion of that group. This concept is illustrated by considering the salaries of employees at a marketing firm. If we have the salaries of every employee, that data represents the population. Conversely, if we only have the salaries of 12 out of 100 employees, that data is a sample.
Another important distinction in statistics is between parameters and statistics. A parameter is a numerical value that describes a characteristic of a population, such as the average height of all college students. In contrast, a statistic is a numerical value that describes a characteristic of a sample, like the average height of a sample group of 10 students. A helpful mnemonic to remember this is that "P" in parameter stands for "population," while "S" in statistic stands for "sample."
For example, if the average salary of all employees at a marketing firm is $41,000, that figure is a parameter. If the average salary of a sample of 12 employees is $58,000, that figure is a statistic. It is common for parameters and statistics to differ, highlighting the inherent variability and challenges in statistical analysis.
In summary, statistics involves the systematic collection and analysis of data to draw conclusions about populations based on samples. Understanding the concepts of population, sample, parameter, and statistic is fundamental to effectively interpreting and utilizing statistical information.