Chapter 11.2, Problem 2E

To determine

Toexplain:

The difference between parameter and statistic along with their example.

Answer to Problem 2E

A parameter is any overview number that represents the entire population, like an average or percentage.

A numerical description of a characteristic sampleis calledstatistic.

Explanation of Solution

• Example to differentiate between parameter and statistic:

We are considering all the possible candidates for an election to get elected. Changing the state constitution would require a ballot initiative. We wish to assess the support level for this ballot initiative.

• Definition of parameter:

A parameter is an overview number that represents the entire population, like an average or percentage.

E.g. In the above case, one parameter is the proportion of the population of eligible voters who support the ballot initiative.

• Definition of statistic:

A numerical description of a characteristic sampleis calledstatistic.

E.g. The equivalent proportion of a sample of probable voters is a statistic, in the above case.