Statistics 2 Definition List

Population – an entire collection/set of individuals or items.

Finite Population – a population where each individual member can be given a number.

Infinite Population – a population where it is impossible to number each member.

Statistic – a random variable that is a function of known observations from a sample

involving no unknown parameters (eg. a calculated mean,variance, an observation).

Test statistic – evidence that has come from a sample.

Sample – a selection of items from the population that are used to represent the population.

Sampling Unit – an item/individual of the population.

Sampling Frame – a list of all the sampling units of the population.

Sampling Distribution – the set of all possible values of the statistic along with their
individual probabilities will form a probability distribution/sampling distribution – all
combinations of outcomes + their probabilities.

Census – a survey of the entire population.

Parameter – a numerical characteristic of a population that is believed to be true. Not

necessarily known. (characteristic such as mean, mode, median or a proportion of
population that have a characteristic).

Level of Significance – the probability of rejecting H0.

Actual Significance Level – the probability of X being less than or equal to lower critical
value + the probability of X being greater than or equal to upper critical value.

Hypothesis – a statement concerning a population parameter.

Hypothesis Test – a mathematical procedure to examine a value of a population parameter

proposed by the null hypothesis H0 compared to the alternative hypothesis H1.

Critical Region – the range of values of the test statistic that would lead you to reject H0.

Critical Value – the boundary value of a critical region.

One tailed test – looks for an increase/decrease in a parameter and has one single critical
value.

Two tailed test – looks for both an increase and a decrease in a parameter and has 2
critical values.

Negative skew – Mean < Median < Mode

Positive Skew – Mean > Median > Mode

No skew – Mean = Median = Mode

Conditions for Binomial:

 Fixed number of trials, n

 Each Trial should be a success or failure
 Trials are independent of each other
 Probability of success is fixed

In Poisson MEAN=VARIANCE

Poisson is a suitable model if events occur:

 Singly in space or time

 Independently of each other
 At a constant rate

F(x) = integral of f(t) dt between “-infinity” and “x”

Mode = highest p.d.f point

Median = F(Q2) = 0.5
LQ = F(Q1) = 0.25
UQ = F(Q3) = 0.75

Uniform distribution is mainly used as:

 A model for errors

When Uniform is not the best distribution to use:

 likely to have higher prob. dens. near median and

 some values more than 25 m away from the median

Pros of Census
Every member of the population is used
Unbiased
Accurate answer as it considers whole pop

Cons of Census
Costly
Time consuming
Hard to ensure the whole population is surveyed

A sample is used when - there is a large population where a census is impractical

Sample Survey - Investigation using surplus

Pros of Sampling
Cheaper than Census
Quicker than Census
Useful where the testing of items results in their destruction - smashing lightbulbs

Cons of Sampling
Can be accidentally Bias
Uncertainty of sample choice could create a set of results that is not representative of the
whole population