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Basic Concepts of
Inferential Statistics
Statisticsconsultation.co
WHAT IS INFERENTIAL STATISTICS?
 Inferential statistics is a technique used to draw
conclusions about a population by testing the data
taken from the sample of that population.
 It is the process of how generalization from sample to
population can be made. It is assumed that the
characteristics of a sample is similar to the population’s
characteristics.
 It includes testing hypothesis and deriving estimates.
 It focuses on making statements about the population.
Statisticsconsultation.co
THE PROCESS OF INFERENTIAL ANALYSIS
Raw Data
• It comprises of all the data collected from the sample.
• Depending on the sample size, this data can be large or small
set of measurements.
Sample
Statistics
• It summarizes the raw data gathered from the sample of
population
• These are the descriptive statistics (e.g. measures of central
tendency)
Inferential
Statistics
• These statistics then generate conclusions about the
population based on the sample statistics.
Statisticsconsultation.co
SAMPLING METHODS
 Random sampling is the best type of sampling method
to use with inferential statistics. It is also referred to as
probability sampling.
 In this method, each participant has an equal
probability of being selected in the sample.
 In case the population is small enough then everyone
can be used as a participant.
 Another sampling technique is Snowball sampling
which is a non-probability sampling.
 Snowball sampling involves selecting participants on
the basis of information provided by previously studied
cases. This technique is not applied for inferential
statistics.
Statisticsconsultation.co
IMPORTANT DEFINITIONS
 Probability is the mathematical possibility that a
certain event will take place. They can range from 0 to
1.00
 Parameters describe the characteristics of a sample of
population. (Variables such as age, gender, income,
etc.).
 Statistics describe the characteristics of a sample on
the same types of variables.
 Sampling Distribution is used to make inferences
based on the assumption of random sampling.
Statisticsconsultation.co
SAMPLING ERROR CONCEPTS
 Sampling Error: Inferential statistics takes sampling
error (random error) into account. It is the degree to
which a sample differs on a key variable from the
population.
 Confidence Level:
The number of times out of 100 that the true value will
fall within the confidence interval.
 Confidence Interval:
A calculated range for the true value, based on the
relative sizes of the sample and the population.
 Sampling error describes the difference between
sample statistics and population parameters.
Statisticsconsultation.co
SAMPLING DISTRIBUTION CONCEPTS
The variables of a
sample taken
from the
population
should be the
same for the
population also.
Due to sampling
error, the sample
mean can be
varied.
The amount of
this variation in
the sample mean
is referred to as
standard error.
Standard error
decreases as the
sample size
increases.
Statisticsconsultation.co
TYPES OF HYPOTHESES
 Alternative hypothesis: It specifies expected
relationship between two or more variables. It may be
symbolized by H1 or Ha.
 Null hypothesis: It is the statement that says there is
no real relationship between the variables described in
the alternative hypothesis.
 In inferential statistics, the hypothesis that is actually
tested is the null hypothesis. Therefore, it is essential to
prove that the null hypothesis is not valid and
alternative hypothesis is true and should be accepted.
Statisticsconsultation.co
HYPOTHESIS TESTING PROCESS
State the research
hypothesis
State the null
hypothesis
Choose a level of
statistical
significance
Select and
compute the test
statistic
Make a decision
regarding whether
to accept or reject
the null hypothesis.
Statisticsconsultation.co
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Basic Concepts of Inferential statistics

  • 1. Basic Concepts of Inferential Statistics Statisticsconsultation.co
  • 2. WHAT IS INFERENTIAL STATISTICS?  Inferential statistics is a technique used to draw conclusions about a population by testing the data taken from the sample of that population.  It is the process of how generalization from sample to population can be made. It is assumed that the characteristics of a sample is similar to the population’s characteristics.  It includes testing hypothesis and deriving estimates.  It focuses on making statements about the population. Statisticsconsultation.co
  • 3. THE PROCESS OF INFERENTIAL ANALYSIS Raw Data • It comprises of all the data collected from the sample. • Depending on the sample size, this data can be large or small set of measurements. Sample Statistics • It summarizes the raw data gathered from the sample of population • These are the descriptive statistics (e.g. measures of central tendency) Inferential Statistics • These statistics then generate conclusions about the population based on the sample statistics. Statisticsconsultation.co
  • 4. SAMPLING METHODS  Random sampling is the best type of sampling method to use with inferential statistics. It is also referred to as probability sampling.  In this method, each participant has an equal probability of being selected in the sample.  In case the population is small enough then everyone can be used as a participant.  Another sampling technique is Snowball sampling which is a non-probability sampling.  Snowball sampling involves selecting participants on the basis of information provided by previously studied cases. This technique is not applied for inferential statistics. Statisticsconsultation.co
  • 5. IMPORTANT DEFINITIONS  Probability is the mathematical possibility that a certain event will take place. They can range from 0 to 1.00  Parameters describe the characteristics of a sample of population. (Variables such as age, gender, income, etc.).  Statistics describe the characteristics of a sample on the same types of variables.  Sampling Distribution is used to make inferences based on the assumption of random sampling. Statisticsconsultation.co
  • 6. SAMPLING ERROR CONCEPTS  Sampling Error: Inferential statistics takes sampling error (random error) into account. It is the degree to which a sample differs on a key variable from the population.  Confidence Level: The number of times out of 100 that the true value will fall within the confidence interval.  Confidence Interval: A calculated range for the true value, based on the relative sizes of the sample and the population.  Sampling error describes the difference between sample statistics and population parameters. Statisticsconsultation.co
  • 7. SAMPLING DISTRIBUTION CONCEPTS The variables of a sample taken from the population should be the same for the population also. Due to sampling error, the sample mean can be varied. The amount of this variation in the sample mean is referred to as standard error. Standard error decreases as the sample size increases. Statisticsconsultation.co
  • 8. TYPES OF HYPOTHESES  Alternative hypothesis: It specifies expected relationship between two or more variables. It may be symbolized by H1 or Ha.  Null hypothesis: It is the statement that says there is no real relationship between the variables described in the alternative hypothesis.  In inferential statistics, the hypothesis that is actually tested is the null hypothesis. Therefore, it is essential to prove that the null hypothesis is not valid and alternative hypothesis is true and should be accepted. Statisticsconsultation.co
  • 9. HYPOTHESIS TESTING PROCESS State the research hypothesis State the null hypothesis Choose a level of statistical significance Select and compute the test statistic Make a decision regarding whether to accept or reject the null hypothesis. Statisticsconsultation.co