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# Population Definition and Quiz

It's infeasible or expensive to fully understand the population, so we sample.
1. Define - Define the term Population for Finance.
2. Context - Use Population in a sentence.
3. Quiz - Test yourself.
Updated: February 18, 2021
Spreadsheets offer statistical calculations for samples and populations, learn when to each them below.

/ factorpad.com / fin / glossary / population.html

## Understanding Populations in Financial Studies

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.

### In a Sentence

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.

### Video

Many terms have 4-5 minute videos showing a derivation and explanation. If this term had one, it would appear here.

Videos can also be accessed from our YouTube Channel.

### Video Script

If this term had a video, the script would be here.

### Quiz

A sample is to a population as a class is to a school. | True or False?

True

When the sample size is large, the difference between a sample and a population is larger. | True or False?

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.

### Related Terms

Our trained humans found other terms in the category statistical distributions you may find helpful.

## What's Next?

• For all Glossary terms, click Outline.
• To review the term Pooled Investment, hit Back.
• Learning is about focus and ads don't help, which is why we're user-supported, click Tip.
• Next, we stick with the theme and discuss Population Parameter, click Next.

/ factorpad.com / fin / glossary / population.html

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