Difference between parameter and statistic

The difference between parameter and statistic is simple as you shall see in this lesson.

The mean, median, mode, range, variance, or standard deviation, or any other numerical measure is called a parameter when the data set represent the entire population.

The mean, median, mode, range, variance, or standard deviation, or any other numerical measure is called a statistic when the data set is a sample of the population.

For example, after 5000 students took a state test, the raw data is given to you to find the mean and standard deviation.

If you use a sample of 100 students to find the mean and the standard deviation, the mean or standard deviation is called a sample statistic or simply a statistic.

If you use the entire population of 5000 students to find the mean and the standard deviation, the mean or the standard deviation is called a population parameter or simply a parameter.

Take a look at the following formulas that we derived in the lesson about standard deviation.

$$ σ = \sqrt {\frac{Σ(x - µ)^{2}} {N} } $$
$$ s = \sqrt {\frac{Σ(x - \bar x)^{2}} {n - 1} } $$
µ  and σ are called population parameters

s and x are called sample statistics

Recent Articles

  1. Pressure in a Liquid - How to Derive Formula

    Jul 02, 22 07:53 AM

    This lesson will show clearly how to derive the formula to find the pressure in a liquid.

    Read More

Enjoy this page? Please pay it forward. Here's how...

Would you prefer to share this page with others by linking to it?

  1. Click on the HTML link code below.
  2. Copy and paste it, adding a note of your own, into your blog, a Web page, forums, a blog comment, your Facebook account, or anywhere that someone would find this page valuable.