Econ. 180.
Assignment 2.
1.
The primary theme of statistics is
Inferential Statistics
, i.e., we utilize
sample data
to make
estimates
,
decisions
,
predictions
and other
generalization
about a large set of
population data
.
To see how this is
accomplished more easily, we could try to understand the relationship between
population
and
sample
.
A relationship becomes clearer if we
reverse
the statistical procedure of making inferences from
sample
to
population
.
That is, assume that the
population
is known and calculate the
chances
(probability) of obtaining various samples from the population.
Thus, we should study probability
because
probability is the reverse of inferential statistics
, i.e., we use the population information to
infer the probability nature of the sample.
2.
Some important concepts related to the theory of probability are:
(a)
D(definition): An
experiment
is an act or process of observation that leads to
a single outcome
that can
not be predicted with
certainty
.
(b)
D: A
sample point
is the most basic outcome of an experiment.
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 '10
 Shieh,YeungNan
 Probability, Probability theory, AUB

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