Stats Definitions-1

Stats definitions
Define Sampling.
Sampling is defined as the process of selecting certain members or a subset of the population to make
statistical inferences from them and to estimate characteristics of the whole population.
Define Sampling With and without Replacement.
Sampling is said to be with replacement when from a finite population a sample is drawn, observed
and then return to the population before another unit is drawn.
Sampling is said to be without replacement when from a finite population a sample is drawn,
observed and not replaced to the population after it has been observed.
Explain Probability and Non Probability sampling.
Probability Sampling is a sampling technique in which sample from a larger population are chosen
using a method based on the theory of probability (Random process). For a participant to be
considered as a probability sample, he/she must be selected using a random selection. It is also called
random sampling. The major types of probability sampling are
• Simple Random sampling
• Stratified Random sampling
• Systematic Random sampling
• Cluster sampling
A non-probability sampling is also called non random sampling. It is a process in which the personal
judgment determines which units of the population are selected for a sample. The disadvantage of the
technique is the reliability of the sample units result cannot be determine in terms of probability. Non
probability sampling techniques are
• Purposive sampling
• Quota sampling
• Consecutive sampling
• Snow ball sampling
Define Simple random Sampling.

A sample is defined to be a simple random sample if it is selected in such a manner that (i) each unit
in the population has an equal probability of being included in the sample (ii) each possible sample of
the sample of the same size has an equal probability of being the sample selected. For example bowl
procedure, using a random number table.
Define Systematic Random Sampling
Systematic sampling is a type of probability sampling method in which sample members from a
larger population are selected according to a random starting point but with a fixed, periodic interval.
This interval, called the sampling interval, is calculated by dividing the population size by the desired
sample size.
Define Stratified Random Sampling
A sample of size n is defined to be a SRS if it is selected from a population which has been divided
into a number of sub populations called strata such that part of the sample is drawn at random from
each stratum. For example to the administrative grouping such as provinces and district, to the
geographic area such as urban and rural, to the natural characteristic such as age group, sex, family
size occupation, education, tastes of the customer etc.
Example:
In order to find the average height of the students in a school of class 1 to class 12, the height varies a
lot as the students in class 1 are of age around 6 years and students in class 10 are of age around 16
years. So one can divide all the students into different subpopulations or strata such as
Students of class 1, 2 and 3: Stratum 1
Now draw the samples by SRS from each of the strata 1, 2, 3 and 4. All the drawn samples combined
together will constitute the final stratified sample for further analysis
Define Cluster Sampling.
Cluster sampling refers to a type of sampling method. With cluster sampling, the researcher divides
the population into separate groups, called clusters. Then, a simple random sample of clusters is
selected from the population. The researcher conducts his analysis on data from the sampled clusters.
Examples:
• In a city, the list of all the individual persons staying in the houses may be difficult to obtain or
even may be not available but a list of all the houses in the city may be available. So every individual
person will be treated as sampling unit and every house will be a cluster.
• The list of all the agricultural farms in a village or a district may not be easily available but the list
of village or districts are generally available. In this case, every farm in sampling unit and every
village or district is the cluster.
Define Purposive sampling
Purposive sampling, also known as judgmental, selective, or subjective sampling, is a form of non-
probability sampling in which researchers rely on their own judgment when choosing members of the
population to participate in their study.
Define Quota Sampling
Quota Sampling is a non-probability sampling method in which researchers can form a sample
involving individuals that represent a population and are chosen according to traits or qualities.
For example, if a researcher wishes to understand his/her target market for an upcoming Bluetooth
headphones variant, the most precise place that can be targeted will be according to age groups.
Consecutive sampling
He researcher picks a single person or a group of a sample, conducts research over a period, analyzes
the results, and then moves on to another subject or group if needed. Consecutive sampling technique
gives the researcher a chance to work with many topics and fine-tune his/her research by collecting
results that have vital insights.
Snow ball Sampling
Researchers use this technique when the sample size is small and not easily available.
Define Standard Error
The standard deviation of the sampling distribution for a statistic is called Standard error
Define sampling and Non-sampling Error
A sampling error is the difference between population parameter and sample statistic. The smaller
the variance greater the reliability of the sample results.
A Non-sampling error includes all kinds of human errors such as faulty sampling frame, non-
responsive questionnaire, errors in editing and coding etc.
Statistical Inference
Statistical Inference makes use of information from a sample to draw to conclusions (inferences)
about the population from which the sample was taken. It has two branches; .Estimation and Testing
of Hypothesis.
Estimation
Estimation is the process by which sample data are used to indicate the value of an unknown quantity
in a population.
Estimator
An estimator is any quantity calculated from the sample data, which is used to give information about
an unknown quantity in the population.
Estimate
An estimate is a specific value or range of values used for indication of the value of an unknown
quantity based on observed data.
Properties of a Good Point Estimator
1. Unbiasedness:
An estimator 𝜃̂ is said to be unbiased estimator of parameter 𝜃̂ if the mean of sampling distribution of
the values of 𝜃̂ is equal to 𝜃̂ i.e.
E(𝜃̂̂)= 𝜃̂
2. Efficiency
An estimator 𝜃̂1 is said to be efficient estimator than 𝜃̂2 if 𝑉𝑎𝑟(𝜃̂1)<𝑉𝑎𝑟(𝜃̂2).
3. Consistency
An estimator is said to be consistent estimator of a population parameter if as the sample size
increases, it becomes almost certain that the value of the statistic comes very close to the value of
population parameter.
4. Sufficiency
An estimator is called sufficient estimator if it makes so much use of the sample information that no
other estimator could extract form the sample additional information about the population parameter
being estimated.
Hypothesis
It is a supposition or assumption, which acts as a foundation or as a starting point in an investigation,
irrespective of its probable truth or falsity. For example, average body temperature of adults is
98.6°F, procedure A of cultivation is better than that of B, etc.
Statistical Hypothesis
A statistical hypothesis is a statement about parameter(s) of population(s). For example, average
body temperature of adults is 98.6°F, more than 10% voters are in favour of a particular party, etc. ·
Testing of Hypothesis
Hypothesis testing begins· with an assumption, called a hypothesis that we make about a population
parameter. Then we collect sample data, produce sample statistic, and use this as information to
decide how likely it is that our hypothesized population parameter is correct. The purpose of this type
of inference to determine whether enough statistical evidence exists to enable us to conclude that a
belief or hypothesis about a parameter is supported by the data.
Null Hypothesis
A hypothesis to be tested for possible rejection under the assumption that it is true, is called mill
hypothesis and is denoted by H0• For example, in a clinical trial of a new drug, the null hypothesis
might be that the new drug is no better, on average, than the current drug.
Alternative Hypothesis
The alternative hypothesis, denoted by H., is to be considered as an alternate to the null hypothesis. It
is also known as Research Hypothesis.
Simple Hypothesis
A simple hypothesis is a hypothesis in which specifies the population distribution completely.
For example,
1. Ho: p = 0.5, i.e., p is specified
2. Ho: X - N(S, 20), i.e., μ and 𝜎2are specified
Composite Hypothesis
A composite hypothesis is a hypothesis, which does not specify the population distribution
completely.
For example,
H 1: p > 0.5, i.e., p is not completely specified
Type-I Error
In a hypothesis test, a type-1 error occurs when the null hypothesis is rejected when it is in fact true;
that is, Ho is wrongly rejected. The probability of committing type-I error is denoted by a. A type-I
error is often considered to be more serious, and therefore more important to avoid, than a type II
error. The hypothesis test procedure is therefore adjusted so that there is a guaranteed 'low'
probability of rejecting the null hypothesis wrongly; this probability is never zero.
Type-II Error
In a hypothesis test, .a type-II error occurs when the null hypothesis H0, is not rejected when it is in
fact false, Ho is wrongly accepted. The probability of committing type-II error is denoted by β. A
type-II error would occur if it was concluded that the two drugs produced the same effect, i.e. there
is no difference between the, two drugs on average, when in fact they produced different ones. A
type-II error is frequently due to sample sizes being too small.

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Stats definitions

Define Simple random Sampling.

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