Overview
Inferential statistics use a random sample of data taken from a population to describe and make inferences about the population. It is used to test hypotheses and make predictions about what might happen in the future.
Key Concepts
- Hypothesis Testing: Determining if there is enough evidence in a sample of data to infer that a certain condition is true for the entire population.
- Confidence Intervals: A range of values that is likely to contain the population parameter.
- P-values: The probability of obtaining test results at least as extreme as the results actually observed, under the assumption that the null hypothesis is correct.
Use Cases
- Predicting election results based on polling data.
- Testing the effectiveness of a new drug in a clinical trial.