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Parameter or statistic? Say whether each of the boldface numbers is a parameter

ID: 2958507 • Letter: P

Question

Parameter or statistic? Say whether each of the boldface numbers is a parameter or a statistic.

(a) Insured? A data set based on 168 hospital discharge summaries shows that 20% of patients were uninsured. (The review takes place in a large referral hospital).

(b) Percent African American. Data from a standard metropolitan area (SMA) indicate that 12% of the inhabitants are African American. A telephone survey that was based on a random-digit-dialing machine found that 8% of respondents were African American.

(c) Cost if antihypertensive medication. Data from online pharmacies reveal that the average cost of a month supply of particular medication is $31.20 with standard deviation $7.75. Data from 10 community pharmacies shows an average cost of $33.18 with standard deviation $7.88.

Explanation / Answer

a) This is a statistic, because it only covers the sample, not the entire population. b) The 12% is a parameter because it is understood that it is the actual figure for the entire population, and the 8% is a statistic because it is based on a sample. c) Both figures are statistics, because they are based on samples not their respective populations.