Advanced Statistics Demystified

Inferential statistics, also called statistical inference, is the process of generalizing from s tatistics calculated on samples to parameters calculated on populations. In this chapter, we will be concerned with using two sample means to make inferences about two population means, using two sample proportions to make inferences about two population proportions, and using two sample standard deviations to make inferences about two population standard deviations. In particular, we will calculate the following statistics on samples taken from two populations: X 1, X 2, S 1, S 2,
, and
. These are the symbols used to represent the mean of the sample from the first population, the mean of the sample from the second population, the standard deviation of the sample from the first population, the standard deviation of the sample from the second population, the proportion in the sample from the first population having a particular characteristic, and the proportion in the sample from the second population having a particular characteristic, respectively. The corresponding measures made on the populations are called parameters. They are represented by the symbols ? 1, ? 2, ? 1, ? 2, P 1, and P 2, respectively.
Estimation and testing hypothesis are the two types of statistical inference that occur in real-world problems. For example, we may use X 1 - X 2 to estimate ? 1 - ? 2 or...