Question

In a study of homeowners, 500 were randomly chosen. It was found that 23% of the people did not have a mortgage and owned their homes outright. Determine whether 23% is a statistic or a parameter.

A.
It is a parameter because the value describes a characteristic of a population.

B.
It is a statistic because the value describes a characteristic of a sample.

C.
It is a parameter because the value describes a characteristic of a sample.

D.
It is a statistic because the value describes a characteristic of a population.

Answer 1

B.

It is a statistic because the value describes a characteristic of a sample.

Answer 2

A statistic describes the characteristics of a sample while a parameter describes the characteristics of a population.

Here, the population is home owners while the selected 500 home owners is a sample.

It was observed that 23% of the selected 500 home owners (SAMPLE) .....

Hence, 23% is a statistic because it describes a caharacteristic of a sample.

Answer: B