Let’s clear up some terms…. you will need these when you are working on the Spreadsheet Assignment for Module 5
- Population – the ideal group you want to study… usually it is too big to get all the data from this group
- Sample – the smaller group that you do actually collect data from (the members of your sample come from your population…. they are some smaller portion of the population)
- Parameter – the number or quantity that you are interested in about the population
- Statistic – the number or quantity that you are interested but which just uses the data from your sample
Now for problems that involve the percentage of your population that feel a certain way, the parameter is called the population proportion (
) and the statistic is called the sample proportion (
)
Let’s do an example similar to the one you need to do for the spreadsheet assignment.
Example: Suppose I want to know what percent of all people prefer Coke over Pepsi. I sample some people and get 163 say they prefer Coke and 87 say they prefer Pepsi.
a) What is the population proportion
b) What is the sample proportion?
c) What is the population?
d ) What is the parameter?
e) What is the sample?
f) What is the sample size?
g) What is the statistic?
If you can answer these questions… then you understand the terms… Here are the answers:
Solution:
a) What is the population proportion?
The proportion (or percentage) of all people that prefer coke. This is called 
(Note: we don’t know this value exactly…)
b) What is the sample proportion?
The proportion of people in the sample that prefer coke.
This is called 
To compute this we divide the number in the sample that prefer coke by the entire sample size:

So the sample proportion is 65.2%.
c) What is the population?
all people
d) What is the parameter?
Here it is the population proportion (or percentage) of all people that prefer coke. (this is the same as in part a) above)
e) What is the sample?
“some people”. It looks there are 250 people in the sample.
f) What is the sample size?

g) What is the statistic?
Here it is the sample proportion of people(or percentage) of people in the sample that prefer coke. This is the same as in part b) above