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Sample data

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Principles of Finance

Definition

Sample data is a subset of a larger population used to make inferences about that population. It is often employed in statistical analysis when it is impractical to study the entire population.

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5 Must Know Facts For Your Next Test

  1. Sample data must be representative of the population to ensure accurate conclusions.
  2. The size of the sample can significantly affect the reliability of the results.
  3. Random sampling helps eliminate bias and makes the sample more representative.
  4. Sample mean, median, and mode are measures of center that summarize sample data.
  5. Sampling error is the difference between a sample statistic and its corresponding population parameter.

Review Questions

  • Why is it important for sample data to be representative of the population?
  • How does random sampling improve the quality of sample data?
  • What are common measures of center used in analyzing sample data?
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