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Our collection of receipts is what statisticians call a comprehensive sample. This is one of the best types of sample to have, but, in practice, it is usually impossible to get. And, when we have it, it may be too costly to measure every individual in the sample. TIPS ON TERMS Population. All of the subjects of interest. The population can be a group of business transactions, companies, customers, anything we can measure and want to know about. The details of which subjects are and are not part of our population should be carefully speciﬁed.
Error In order to help make decisions, we need to know the true value of the information that statistics provides. Statistics not only provides information, but also speciﬁc measures of the degree of conﬁdence with which that information can be trusted. This ability to measure the quality of statistical information is based on the concept of error. TIPS ON TERMS Error. The degree to which a description does not match whatever is being described. All aspects of statistics are prone to error. No individual measurement is free from error.
They all land in the dirt short of the target, in a circle smaller than the bull’s eye of the target. He laughs, ‘‘You don’t need to pull any harder. A bow should always be pulled with just enough strength for the arrowhead to be just past the bow. If you want to hit the target, you have to shoot farther. ’’ I give it a try, and, with a little practice, I am hitting the target dead center every time. I’ve corrected my second error. I’m shooting accurately. When we are both precise and accurate, we hit the target.