Statistics

And
Probability
DICTIONARY
By : Charlie N. Zamora

WHAT IS STATISTICS AND PROBABILITY?

Probability And Statistics are the two important concepts in Maths.

Probability is all about chance. Whereas statistics is more about how we
handle various data using different techniques. It helps to represent
complicated data in a very easy and understandable way.
Parameter Estimation – the process of making inferences about a population based

on the information/ value obtained from a sample describing a characteristic of the

population.

Point Estimate – the sample mean 𝒙𝒙

̅ of the population or mean 𝝁𝝁. It is the numerical

value which gives an estimate of a parameter.

Interval Estimator – is a formula that tells us how to use sample data to calculate

an interval that estimates a population parameter.

Point Estimator - 𝜇𝜇 = ∑𝑁𝑁𝑋𝑋 = 𝑥𝑥̅

Interval Estimation gives us a range of values which is likely to contain the

population parameter. It can be determined by two values.

Confidence level – expressed as percent, it sets a portion of the sample to be

included within a known range of the true population.

Confidence Interval – The width +/-2.9% stated as plus or minus 2.9. When the

interval and confidence level are put together, you get a spread of percentage