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Measures of variability with inferential statistics

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Explain why measures of variability are essential to inferential statistics.

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Solution Summary

This posting begins by defining what inferential statistics are, and then explains what 2 of the most popular inferential statistics are.

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When looking at inferential stats, we are trying to see if we can make inferences (conclusions or analysis) on a set of data. We can't just eye ball the data, we need to actually sit down and compute statistics to make a statistically sound conclusion on the data. This is what distinguishes inferential stats from descriptive stats that just looks at the data from a superficial point of view.

What type of tests do we do for inferential stats? The two main are estimation and hypothesis testing.

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