Population

AAA

DEFINITION of 'Population'

The entire pool from which a statistical sample is drawn. The information obtained from the sample allows statisticians to develop hypotheses about the larger population. Researchers gather information from a sample because of the difficulty of studying the entire population. In statistical equations, population is usually denoted with a capital 'N', while the sample is usually denoted with a lowercase 'n'.

INVESTOPEDIA EXPLAINS'Population'

For example, let's say a denim apparel manufacturer wants to check the quality of the stitching on its blue jeans before shipping them off to retail stores. It is not cost effective to examine every single pair of blue jeans the manufacturer produces (the population). Instead, the manufacturer looks at just 50 pairs (a sample) to draw a conclusion about whether all 500 pairs of jeans produced (the population) are likely to have been stitched correctly.



RELATED TERMS
  1. Uniform Distribution

    In statistics, a type of probability distribution in which all ...
  2. Symmetrical Distribution

    A situation in which the values of variables occur at regular ...
  3. Negative Correlation

    A relationship between two variables in which one variable increases ...
  4. Positive Correlation

    A relationship between two variables in which both variables ...
  5. Simple Random Sample

    A subset of a statistical population in which each member of ...
  6. Probability Distribution

    A statistical function that describes all the possible values ...
Related Articles
  1. Mutual Funds & ETFs

    5 Ways To Measure Mutual Fund Risk

    These statistical measurements highlight how to mitigate risk and increase rewards.
  2. Active Trading

    Introduction To Stationary And Non-Stationary Processes

    What to know about stationary and non-stationary processes before you try to model or forecast.
  3. Fundamental Analysis

    Scenario Analysis Provides Glimpse Of Portfolio Potential

    This statistical method estimates how far a stock might fall in a worst-case scenario.
  4. Economics

    The True Unemployment Rate: U6 Vs. U3

    Learn how to distinguish between the U-3 and U-6 unemployment rates, and explore which rate provides a truer picture of unemployment.
  5. Economics

    What's a Centrally Planned Economy?

    A centrally planned economy is one where the government controls the country’s supply and demand of goods and services.
  6. Economics

    What are Barriers to Entry?

    A barrier to entry is any obstacle that restricts or impedes a company’s efforts to enter an industry.
  7. Mutual Funds & ETFs

    ETF Analysis: SPDR S&P 500 Trust

    Find out more about the SPDR S&P 500 ETF Trust, the characteristics of the exchange traded fund and the suitability of investing in the fund.
  8. Mutual Funds & ETFs

    ETF Analysis: Energy Select Sector SPDR

    Find out more about the Energy Select Sector SPDR Fund, the top holdings of this exchange-traded fund and the characteristics of the fund.
  9. Investing News

    The Financial Singularity Will Destroy Your Return

    Given the current and future growth of financial technology, many believe algorithms will soon define what drives market outcomes. With a wealth of big data, algorithms would be able to create ...
  10. Economics

    Explaining the Liquidity Coverage Ratio

    The liquidity coverage ratio requires banks and other financial institutions to hold enough cash and liquid assets on hand to weather market stress.
RELATED FAQS
  1. What assumptions are made when conducting a t-test?

    The common assumptions made when doing a t-test include those regarding the scale of measurement, random sampling, normality ... Read Full Answer >>
  2. How might a company use demographics to assess the size of a potential market?

    Demographics can be used to help a company determine key characteristics of the potential population to which it company ... Read Full Answer >>
  3. What can demographics tell us about present and future consumption trends and economic ...

    Demographics gives insight into future population growth, which can reveal present and future consumption trends and economic ... Read Full Answer >>
  4. How does stratified random sampling influence government policy decisions?

    Governments use various analytical techniques to examine the potential costs and benefits of policy options. One of those ... Read Full Answer >>
  5. What are some of the uses of the coefficient of variation (COV)?

    In statistics, the coefficient of variation (COV) is a simple measure of relative event dispersion. It is equal to the ratio ... Read Full Answer >>
  6. What is the difference between systematic sampling and cluster sampling?

    Systematic sampling and cluster sampling differ in how they pull sample points from the population included in the sample. ... Read Full Answer >>
  7. How can I use systematic sampling in finance?

    Systematic sampling is useful in finance for situations where it is impractical to review the entire population for certain ... Read Full Answer >>
  8. What are the best selection methods for creating a simple random sample?

    The best selection methods for selecting a simple random sample are the lottery method, using a random number table or having ... Read Full Answer >>
  9. What are the disadvantages of using a simple random sample to approximate a larger ...

    Simple random sampling statistically measures a subset of individuals selected from a larger group or population to approximate ... Read Full Answer >>
  10. What is the difference between a simple random sample and a stratified random sample?

    Simple random samples and stratified random samples differ in how the sample is drawn from the overall population of data. ... Read Full Answer >>
  11. What are the advantages and disadvantages of using systematic sampling?

    As a statistical sampling method, systematic sampling is simpler and more straightforward than random sampling. It can also ... Read Full Answer >>
  12. What are the advantages and disadvantages of stratified random sampling?

    Researchers use stratified random sampling to obtain a sample population that best represents the entire population being ... Read Full Answer >>
  13. What are some examples of stratified random sampling?

    Simple random sampling is a sample of individuals that exist in a population; the individuals are randomly selected from ... Read Full Answer >>

You May Also Like

Hot Definitions
  1. Nanny Tax

    A federal tax that must be paid by people who hire household help (a babysitter, maid, gardener, etc.) and pay them a total ...
  2. Dog And Pony Show

    A colloquial term that generally refers to a presentation or seminar to market new products or services to potential buyers.
  3. Topless Meeting

    A meeting in which participants are not allowed to use laptops. A topless meeting organizer can also ban the use of smartphones, ...
  4. Hedging Transaction

    A type of transaction that limits investment risk with the use of derivatives, such as options and futures contracts. Hedging ...
  5. Bogey

    A buzzword that refers to a benchmark used to evaluate a fund's performance. The benchmark is an index that reflects the ...
  6. Xetra

    An all-electronic trading system based in Frankfurt, Germany. Launched in 1997 and operated by the Deutsche Börse, the Xetra ...
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!