Difference Between Parameter and Statistic

Difference Between Parameter and Statistic

No matter what discipline you go for, you’re sure to come across the words parameters and another common word called statistics. However, you may always wonder how parameter and statistic differ. It seems rather confusing because most of the times they are used together in a certain context.

Mainly these words are used when we are trying to infer information about something that is available in large numbers. For the explanation purpose, let’s say, people who prefer blue-colored clothes to red-colored ones in the entire world. That is very hard to calculate. Not only is it mystifying, but it is impossible. Although, we can use the data collected in each country, but it would take ages and a lot of resources to get the exact numbers. What can we do instead? We can only take a part, or in other words, a fragment of the entire mass in the world.

A part of the population or those from the example above, is a representative of the clan. Every individual will contribute to a specimen. It can be a more or less large subdivision. Ideally, for the study to succeed, there should be at least 30 of them. Now that the basics of our topic are crystal clear, let us move on to the difference between parameter and statistic. Let’s look at the two factors first and get back to the difference.

Definition of Parameter

A parameter is simply a unit that must be calculated to perceive masses and it’s a statistic.

It can get hard to comprehend the difference between parameter and statistics, but seeing the definition of each would help a person get to work.

When considering a sample, the means have to be enumerated, or even find a segment of the median, or even a population mode. These are criteria for any given mass. So based on the number after having calculated them, based on requirements, one can understand the real facet of the masses that is being observed.

Criteria are so difficult to find when the given population is huge. For illustration purpose, the entire humanoids on Earth! But on the flip side, variable can be easily found out for a tiny number of groups, such as the inhabitants of a city or a building.

Before you try to figure out what is the difference between parameter and statistic, let us see what these particularities of the population in question mean. For that, we have to go to the next section of this article.

Definition of Statistic

Statistics is the oddity of the sample in question. Based on the assessed specs of the given specimen, you can easily deduce the meaning of the whole population. If you think a variable is necessary to interpret stats, then the statistical analysis is the estimator of the former!

To better perceive the difference between a statistic and parameter, let us follow the concept with an elaborate instance. Consider the world’s female population that can sew clothes. But in this population, how many of them know how to weave sweaters? How do you add it all up?

Obviously, to figure that out, a person needs to contact each country’s government to make a study on this. Then collect them and make a report. This looks like a time-consuming and hideous job to do. Instead, what can we do? They can take a small number or a specimen. Maybe in their own country or city. Then gauge various constants for this sample.

This will give them statistics of the fraction of women who sew and can weave and the proportion of women who can only sew. This example will certainly teach them the difference between a statistic and a parameter.

Doing the exercise on the sample will not only save time and money, but will also allow them to focus on calculating other criteria and getting other stats to better understand the population in question.

Parameter vs Statistic Comparison Table

Nothing can explain a concept as well as a comparison table. Why don’t you stop thinking too much and look directly at this table to finally know the difference between a parameter and a statistic?

Basis of Comparison Parameter Statistics
What is it? This estimate the entire population and describes any given populace based on the measureThis takes the first into consideration, and based on that, describes what a portion of the population means
Numerical estimation This always has a fixed value but it can never be known Values always tend to vary in this case, but you will always know
Measure Impossible to measure. Very difficult It is so possible to measure this. Very easy
Variance indication It uses the symbol σ2 to tell what it isThis uses s2 to indicate the variance
Total population When you see an ‘N’, it indicates the entire population’s parametersBut in this case, you will see an ‘n’ that indicates the stats of a given population
Describes This factor when quantified indicates an entire populace considered But when statistics is determined, one will only get the characteristics of a sample of that collection
Example 30% of the school kids prefer chocolate ice cream over vanilla flavor. School kids are countable, so we know this valueOnly 10% of second graders prefer chocolate ice cream over vanilla flavor. Here, you can see that we have evaluated only one portion of the school

Conclusion of Main Difference Between Parameter vs Statistic

Both concepts explained above go hand in hand, but at times, one may get confused by the gravity of the similarities between them. If anyone ever gets stuck with the question – what is the difference between a statistic and a parameter – just go through this article to get all the answers. It is very simple.

If you remember that statistics only explain part of the whole population, whereas variables have the power and ability to explain the entire population, you are good to go. So the next time you think about the difference between statistic and parameter, remember the above!