Population

A population is collection of all items

Census- Where every member of the population is investigated

Sample- selection of individual items from a population

Finite population- where every individual member can be numbered

Infinite population- impossible to number each member

Sampling frame:
A list of all sampling units in a population
Sampling frame different to population since list may not be up to date

Sampling unit- an individual member of the population

Statistic- (A random variable) that is a function of the sample which contains no unknown
quantities/parameters

Sampling distribution of X
-The probability distribution of all possible values of X
-All possible samples are chosen from a population; the values of a statistic and the
associated probabilities is a sampling distribution

Population parameter- a characteristic of a population which can be measured

Simple random sample of size n- where every possible sample of size n has an equal chance
of chance of being selected
-consists of observations X1,X2..Xn from a population where the Xi are independent random
variables
-have the same distribution as the population

Census-
A- Every single member of the population used so accurate
-Unbiased
D- expensive
-time consuming to obtain the data and analyse it
-difficult to ensure the entire population has been surveyed

Sampling
A- Cheaper
-quick
-Useful is testing the item results in their destruction
-data more readily available
D- uncertainty since sample may be subject to natural variation
-could be biased
Hypothesis:
A statement concerning a population parameter

Hypothesis test: the examination of a value of a population parameter proposed by a null

hypothesis compared to the alternative hypothesis.

Null hypothesis:
Hypothesis we assume to be correct unless proved otherwise

Alternative hypothesis:
The value of the population parameter if our assumption is wrong

Test statistic-
Evidence from a sample which is summarised as a statistic for use in the hypothesis test

Critical region-
A critical region is the range of values that would lead to the rejection of H0

Level of significance
The probability of incorrectly rejecting H0 or Probability of rejecting
H0 when H0 is true

Actual significance level- the probability of rejecting H0

One tailed test- looks for either an increase or decrease in a parameter; has a single critical
value

Two tailed test- looks for both an increase of decrease in a parameter and has 2 critical
values

Binomial:
-fixed number of trials
-each trial is a success or failure
-trials are independent
-probability of success at each trial constant
- mean=np. Variance=npq

Poisson: Mean=Variance
-events occur singly in space or time
-events are independent of each other
-events occur at a constant, random rate

BinomialPoisson
-n large
-p is small
-(np< 10)
BinomialNormal
-n is large
-p is close to 0.5

PoisonNormal
-lambda is large

Rule of thumb: np<10 then use Poisson (since tables can be used)

Statistically Significant' The likelihood that a result or relationship is caused by something other than
mere random chance