Question

2. Determine whether the numerical value is a parameter or a statistic (and explain):Part A: A recent survey by the alumni of a major university indicated that the averagesalary of 10,000 of its 300,000 graduates was 125,000.Part B: The average salary of all assembly-line employees at a certain car manufacturer is$33,000.Part C: The average late fee for 360 credit card holders was found to be $56.75.

Answer 1

A parameter is a number describing a whole population, , while a statistic is a number describing a sample.

A) Statistic. 10,000 out of 300,000 graduates are analysed

B) Parameter. All employees are analysed.

C) Statistic. There are more than 360 credit card holders.