Which of the following is an example of parameter? A;Population variance B:Sample standard deviation C: Sample mean A parameter is any descriptive measure of a population characteristic. The population variance describes a population while the sample standard deviatiion and sample mean are each descriptive measures of samples. not quite sure why the answer is A
Luckily you caught me as i’m taking a break from CFA level 2 quant right now. You’re close. You’re right in regards to everything. However, it’s too vague when you say, “the sample standard deviation and sample mean are each descriptive measures of samples.” Like yeah they’re descriptive measures of the samples. But why did we take the samples to begin with? Answer: We took the samples to “estimate the true population parameter” Try this tip with the multiple choice answers and see if you can get it right: 1) when referring to population, automatically think: THE TRUE POPULATION PARAMETER 2) when referring to a sample, automatically think: AN ESTIMATE OF THE TRUE POPULATION PARAMETER