A local cable TV system using a sample of 500 subscribers finds that 40% of these subscribers watch a premium channel at least once per day. This is an example of statistical inference as opposed to descriptive statistics.Group of answer choicesTrueFalse
Question
A local cable TV system using a sample of 500 subscribers finds that 40% of these subscribers watch a premium channel at least once per day. This is an example of statistical inference as opposed to descriptive statistics.Group of answer choicesTrueFalse
Solution
False.
This is an example of descriptive statistics, not statistical inference. Descriptive statistics involves summarizing and organizing the data so it can be easily understood. In this case, the cable TV system is simply describing the behavior of its subscribers, specifically that 40% of them watch a premium channel at least once per day.
Statistical inference, on the other hand, would involve using this sample data to make predictions or draw conclusions about the larger population of all subscribers. For example, if the cable TV system used this sample to estimate that 40% of all their subscribers (not just the ones in the sample) watch a premium channel at least once per day, that would be an example of statistical inference.
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