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Summary

22 October, 2015 - 17:21

To describe a population you need to describe the picture or graph of its distribution. The two things that need to be described about the distribution are its location and its shape. Location is measured by an average, most often the arithmetic mean. The most important measure of shape is a measure of dispersion, roughly width, most often the variance or its square root the standard deviation.

Samples need to be described, too. If all we wanted to do with sample descriptions was describe the sample, we could use exactly the same measures for sample location and dispersion that are used for populations. We want to use the sample describers for dual purposes, however: (a) to describe the sample, and (b) to make inferences about the description of the population that sample came from. Because we want to use them to make inferences, we want our sample descriptions to be "unbiased estimators". Our desire to measure sample dispersion with an unbiased estimator of population dispersion means that the formula we use for computing sample variance is a little different than that used for computing population variance.