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Beginner
Population is a statistical term referring to the whole set of data to be studied. In Finance, the population is rarely known so sampling techniques are used to make a best guess about a population.
Synonym: universe
For context, and as an example, Excel's standard deviation function is one
in which sample and population calculations differ. The function
=STDEV.S() is for samples and
=STDEV.P() is for populations.
The general rule for when to select samples or populations is whether you can measure all values. A census is an example of a survey that attempts to collect all items in a population.
Eve: The distribution of P/E ratios for this
population is skewed, thanks to Amazon's lack of earnings.
Pam: Yeah, everything is a value at
Amazon, except its stock.
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Click box for answer.
True
False. Dividing by n - 1 has less impact when n is large.
Still unclear on the term Population for investments. Check out the Quant 101 Series of free financial modeling tutorials.
Our trained humans found other terms in the category statistical distributions you may find helpful.
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