Chandigarh University Department of Commerce

CHANDIGARH UNIVERSITY
DEPARTMENT OF COMMERCE
Bachelor of Commerce
COMMERCE APTITUDE (CMT-658)
BY Dr. A. Shanker Prakash[E10381]
STANDARD ERROR DISCOVER . LEARN . EMPOWER

• Space for visual (size 24)
COMMERCE
APTITUDE
Course Objectives & Outcome Will be covered in this
CO Number Title Level lecture
CO1 What is DATA COLLECTION? Remember

CO2 How can be collected through various methods? Understand

CO3 Some real-life examples of data collection Understand
2
STANDARD
ERROR
Standard error is a
mathematical tool used in
statistics to measure
variability. It enables one to
arrive at an estimation of
what the standard deviation
of a given sample is. It is
commonly known by its
abbreviated form – SE.
3
WHAT IS THE STANDARD ERROR?
Standard error is a mathematical tool used in statistics to measure
variability. It enables one to arrive at an estimation of what the
standard deviation of a given sample is. It is commonly known by its
abbreviated form – SE. SE is used to estimate the efficiency, accuracy,
and consistency of a sample.
In other words, it measures how precisely a sampling distribution
represents a population. It can be applied in statistics and economics. It
is especially useful in the field of econometrics, where researchers use
it in performing regression analyses and hypothesis testing.
4
WHAT IS THE STANDARD ERROR?
It is also used in inferential statistics, where it forms the basis for the
construction of the confidence intervals. Some commonly used
measures in the field of statistics include:
• Standard error of the mean (SEM)
• Standard error of the variance
• Standard error of the median
• Standard error of a regression coefficient
5
Calculating Standard Error of the Mean
(SEM)
6
Importance of Standard Error
• When a sample of observations is extracted from a population and
the sample mean is calculated, it serves as an estimate of the
population mean.
• Almost certainly, the sample mean will vary from the actual
population mean. It will aid the statistician’s research to identify the
extent of the variation.
• It is where the standard error of the mean comes into play. When
several random samples are extracted from a population, the
standard error of the mean is essentially the standard deviation of
different sample means from the population mean.
7
Importance of Standard Error
• However, multiple samples may not always be available to the
statistician.
• Fortunately, the standard error of the mean can be calculated from a
single sample itself.
• It is calculated by dividing the standard deviation of the observations
in the sample by the square root of the sample size.
8
Relationship between SEM and the Sample
Size
Intuitively, as the sample size increases, the sample becomes more
representative of the population.
For example, consider the marks of 50 students in a class in a
mathematics test. Two samples A and B of 10 and 40 observations
respectively are extracted from the population. It is logical to assert that
the average marks in sample B will be closer to the average marks of the
whole class than the average marks in sample A.
9
Relationship between SEM and the Sample
Size
Thus, the standard error of the mean in sample B will be smaller than
that in sample A. The standard error of the mean will approach zero
with the increasing number of observations in the sample, as the sample
becomes more and more representative of the population, and the
sample mean approaches the actual population mean.
It is evident from the mathematical formula of the standard error of the
mean that it is inversely proportional to the sample size. It can be
verified using the SEM formula that if the sample size increases from 10
to 40 (becomes four times), the standard error will be half as big
(reduces by a factor of 2).
10
Standard Deviation vs. Standard Error of
the Mean
• Standard deviation and standard error of the mean are both statistical
measures of variability.
• While the standard deviation of a sample depicts the spread of
observations within the given sample regardless of the population
mean, the standard error of the mean measures the degree of
dispersion of sample means around the population mean.
11
SUMMARY
12
Assessment Pattern
13
APPLICATIONS
After going through this presentation,
• Students will get an insight into meaning of SE.
• They will also come to comprehend the Calculation of standard error.
• Students will be mindful of importance of SE.
• Students can understand the difference between standard deviation and
standard error.
14
REFERENCES
WEBSITES
• https://www.jotform.com/data-collection-methods/
• https://www.formpl.us/blog/data-collection-method.
• https://www.questionpro.com/blog/data-collection/
• https://en.wikipedia.org/wiki/Data_collection
• https://ori.hhs.gov/education/products/n_illinois_u/datamanagement/dctopic.html
BOOKS
• UGC NET TRUE MAN
• UGC NET ARIHANT
VIDEO LINKS
https://www.youtube.com/watch?v=XEdXKrljNRU
https://www.youtube.com/watch?v=csh2g8Cx1Hs
15
THANK YOU
For queries
Email: [email protected]

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CHANDIGARH UNIVERSITY

STANDARD ERROR DISCOVER . LEARN . EMPOWER

CO1 What is DATA COLLECTION? Remember

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