Sample mean variance and division by (n-1)

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SUMMARY

The discussion clarifies the distinction between calculating sample variance and the variance of the sample mean. When estimating the population variance from a sample, one divides by (n-1) to account for the bias introduced by estimating the population mean. However, when calculating the variance of the sample mean, the correct approach is to divide by n, as the formula for the variance of the sample mean is Var(sample mean) = (Population variance)/n. This is applicable when the population mean is known, which justifies the use of n instead of (n-1).

PREREQUISITES
  • Understanding of basic statistical concepts, including variance and standard deviation
  • Familiarity with the difference between population and sample statistics
  • Knowledge of the Central Limit Theorem
  • Basic proficiency in statistical notation and formulas
NEXT STEPS
  • Study the derivation of the formula for the variance of the sample mean
  • Learn about the implications of using (n-1) versus n in variance calculations
  • Explore the Central Limit Theorem and its relevance to sample means
  • Investigate the concept of bias in statistical estimators
USEFUL FOR

Students in statistics courses, educators teaching statistical methods, and data analysts seeking to understand the nuances of variance calculations in sample statistics.

monsmatglad
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Hi. i wonder how come one doesn't divide with (n-1) when finding the sample mean variance.


Homework Equations



Shouldn't I divide with n -1 since it is samples i am dealing with?

The Attempt at a Solution



I don't really have any idea as to why the book uses n. I have googled but could not find anything. I can use the result i find when following the procedure in the book, but i don't understand why the sample mean variance is not treated as a regular sample from a population - which in previous chapters would mean division by n -1 when finding the "regular" variance.

Mons
 
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Is this a situation where n is large? The difference between dividing by n and dividing by n-1 would be small for large n.
 
monsmatglad said:
Hi. i wonder how come one doesn't divide with (n-1) when finding the sample mean variance.


Homework Equations



Shouldn't I divide with n -1 since it is samples i am dealing with?

The Attempt at a Solution



I don't really have any idea as to why the book uses n. I have googled but could not find anything. I can use the result i find when following the procedure in the book, but i don't understand why the sample mean variance is not treated as a regular sample from a population - which in previous chapters would mean division by n -1 when finding the "regular" variance.

Mons

You divide by (n-1) when estimating the population variance, when the population mean is also unknown and must be estimated, too. If you *know* the population mean exactly (so don't need to estimate it) you would divide by n when estimating variance. However, when estimating the variance of a *sample mean*, you divide the estimated population variance by n, because Var(sample mean) = (Population variance)/n, exactly. When you estimate Population variance, you still divide by n here (although you divided by n-1 when estimating population variance---in effect, you have divided by n*(n-1)).

RGV
 

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