Difference between Parameter and Statistic

Parameter and statistic are terms used to determine sample sizes. Statistics are
numbers showing the properties of samples, while parameters describe the
characteristics of an entire population. Discover the differences, types and how to
estimate parameter vs statistic.

Parameter vs Statistic – In a Nutshell

● Parameter vs statistic values depend on the size of the sample used in research.
A statistic is a feature present in a small section of the population, while a
parameter is a fixed measure representing the entire population.
● A parameter represents a fixed and unknown numerical value, while a statistic
is a variable and known number based on the sample used for the research.
● You can use statistical notations to differentiate parameters vs statistic.

Definition: Parameter vs statistic

When differentiating a parameter vs statistic, use the size of the groups. If you
randomly survey a group of people that use a specific brand, the value you get is
a statistic since you only asked a small percentage of the entire population.
In research, the terms parameter and samples are used to denote the extent of
the research. In quantitative research, the researcher wants to understand the
characteristics of a population by determining the parameters. Since it is
unfeasible to collect data from an entire population, data is gathered from
samples.
In inferential statistics, the conclusions from sample statistics are used to infer
and hypothesize about the population parameters.

Parameter vs statistic: Population vs sample

Estimating parameter vs statistic relies on the population and samples collected
for the research. A population represents the entire group you are surveying. You
can research a group of people, organisms, countries, organizations, and objects
based on your research.
A sample is a small group that is a portion of a larger population. You will collect
data from the samples to make educated guesses about the entire population.
Parameter vs statistic: Number types
When defining parameter vs. statistic, you summarize any measurable features of
the population or sample.

Example:
The average height of adult women in the UK is a parameter with an unknown
value. That means population parameters will be based on the standard deviation
and mean of the population.
In research, you get sample statistics when you use the sample collected to
calculate the mean and standard deviation. The most common types of numbers
in parameter vs statistic include:
●Categorical variables: The parameter or statistic used is a proportion.
●Numerical variables: The parameter vs statistic numerical variables are reported
using mean, median and standard deviation.

Statistical notation
Diverse symbols are used for parameter vs statistic to indicate whether you are
referring to a population or a sample. Latin and lowercase letters denote samples
in most cases, while Greek and capital letters show populations.
Some of the statistical notations of parameter vs statistic include:
Distinguish a parameter from a statistic
In research reports and news, it can be challenging to determine whether a
number is a parameter or a statistic. When differentiating parameter vs statistic,
use the following questions as a guide:
●Does the value represent the entire population where every member
participated in data collection?
●Can you collect data on a particular characteristic from every member in a
reasonable time frame?
When you are distinguishing parameter vs statistic, the size of the population or
sample makes a difference. If the answer to the questions above is yes, the
number is a parameter. If the answer is no, then the value represents a statistic.

Parameter vs statistic: How to estimate

In parameter vs statistic estimations, researchers use a sample to collect data
from a large population and generalize the statistic to a broader population.
Inferential statistics allow you to estimate population parameters from sample
statistics. The two types of estimates about a population include:
Point estimate: It provides a single numerical value of the population parameter
based on the sample statistic. For example, a sample mean can be a point
estimate of the population mean.
Interval estimate: It provides a range of values where the parameter lies. A
common interval estimate is the confidence interval.