Build a Better Process

Statistical Sample Definition and Quiz

We can't get our arms around the population, so we sample.
  1. Define - Define a Statistical Sample for investments.
  2. Context - Use Stastical Sample in a sentence.
  3. Quiz - Test yourself.
face pic by Paul Alan Davis, CFA
Updated: February 18, 2021
Try to imagine the population of all investments in world, and this illustrates our challenge. Learn more below.

Outline Back Tip Next

/ factorpad.com / fin / glossary / sample.html

An ad-free and cookie-free website.

Understanding Statistical Samples for Investments


Statistical Sample refers to a subset of a population to be studied. In Finance, and particularly investments, the population is rarely known, so sampling techniques are used to make a best guess estimate about a population.

Synonym: sample, replicate

For context, the size of the sample is an important aspect of any empirical study for the analyst to make inferences about a population.

There are several ways an investment analyst can select the appropriate sample size, including using a target variance for an estimate, the power of the statistical test and the confidence level desired. Also, making estimates about a proportion, mean, for hypothesis testing requires different procedures.

Sometimes as a rule of thumb, with investments, analysts will require a sample size of 30, or 60 observations.

In a Sentence

Guy:  Yeah...but none of my past three employers complained about my social skills.
Eve:  Now that's not a verg big statistical sample Guy. You should be the first to acknowledge that.


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.


Click box for answer.

Measuring a sample is common in social sciences like Economics because it is often difficult to define a population. | True or False?


Generally, the larger the sample size the greater the confidence. | True or False?


Questions or Comments?

For links to all glossary terms and videos click the Outline button below.

Related Terms

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

What's Next?

Learn with video too. Subscribe at YouTube today. Also for periodic updates check out our no-spam email list.

Outline Back Tip Next

/ factorpad.com / fin / glossary / sample.html

stock sample
stock statistic
return estimation
sample in finance
statistical sample in finance
investing sample
sample in statistics
stock return sample
what is a sample
statistical sample
investment modeling sample
population parameter in finance
financial modeling sample
sample size

A newly-updated free resource. Connect and refer a friend today.