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.
Updated: February 18, 2021
Try to imagine the population of all investments in world, and this illustrates our challenge. Learn more below.

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

## Understanding Statistical Samples for Investments

Beginner

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.

### 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

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

True

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

True

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.

• For all Glossary terms, click Outline.
• To review another statistical term R-Squared, hit Back.
• You're not too much of a hipster to leave a tip sir, click Tip.
• Next to get a little more technical with Sample Statistic, click 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.