Calculating Variance: Sample vs Population

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SUMMARY

The discussion focuses on the calculation of variance for sample and population data, specifically addressing the variance of the sample mean, denoted as Var(X̄). The correct expression for Var(X̄) is established as σ²/n, where σ² represents the population variance. The confusion arises from the incorrect assumption that Var(X̄) could be expressed as 1/n² × Var(X). The sample variance, s², is defined as s² = 1/(n-1) Σ(xi - x̄)², which serves as an unbiased estimator of the population variance.

PREREQUISITES
  • Understanding of variance and standard deviation concepts
  • Familiarity with sampling distributions
  • Knowledge of statistical notation and formulas
  • Basic proficiency in statistical software for calculations
NEXT STEPS
  • Study the derivation of the variance of the sample mean, Var(X̄) = σ²/n
  • Learn about the differences between sample variance and population variance
  • Explore the concept of unbiased estimators in statistics
  • Investigate the implications of the Central Limit Theorem on sampling distributions
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Statisticians, data analysts, and students studying statistics who need a clear understanding of variance calculations in both sample and population contexts.

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I don't understand a question on finding an expression for the variance of something...


Attempt at solution: also I worked out c as (3/2) previously, which is correct
Var(U) = (3/2)^2 x Var(Xbar) = 9/4n^2 x a^2/18

I'll attach a photo of this too if it's easier to read, my problem is that I thought var(Xbar) = var(x/n) = 1/n^2 x var(x)

... But they have done var(Xbar) = 1/n x var(x) ...?
 

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Think about this:
<br /> Var\left(\bar X\right) = Var\left(\frac 1 n \sum_{i=1}^n X_i\right) = \frac 1 {N^2} \sum_{i=1}^n Var(X_i)<br />

What happens when you simplify the sum?
 
Ah I see so it's just sigma^2/n, is this the same for all cases as in, calculating the variance of a sample and estimating a population variance?.. In other words, kinda, will it ever (a level standard) be 1/n^2 x var(x)

Probably a stupid question, just checking
 
The only time you would have n^2 in the denominator is if you were (for some reason) considering mathematically a single observation X_1 and calculate
<br /> Var\left( \dfrac{X_1}{n}\right) = \dfrac{Var(X)}{n^2}<br />

"is this the same for all cases as in, calculating the variance of a sample and estimating a population variance?"
I'm not exactly sure what you mean by this, so if my response is off-target that's why.

If you've talked about sampling distributions for the sample mean, the expression \frac{\sigma^2}n is the population variance for that sampling distribution. It will never have denominator n^2, since, as long as the distribution being sampled has a variance, the steps shown above apply.

The (sample) variance of a sample is a different beast. Essentially
* if the population variance is \sigma^2, then the sample variance
<br /> s^2 = \dfrac 1 {n-1} \sum_{i=1}^n \, \left(x_i - \bar x\right)^2<br />
is an unbiased estimator of the population variance

* If you refer to the variance of the sampling distribution of \bar x - which is given above - then to estimate that you have two options
a) If you have a single sample, use the sample variance s^2 to estimate the sampling distribution's variance by calculating
<br /> \dfrac{s^2}{n}<br />

b) If you have a large number of samples, all the same sample size, from the same population, then calculate each sample mean and treat those sample means as a new sample. The sample variance of those (call it s_{\bar x}^2) is the estimate of \dfrac{\sigma^2}{n}

So there are several subtleties to wade through, but in none but the one unusual and unrealistic comment I made at the start will \frac{\sigma^2}{n^2} play a role.
 

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