Question

What is the role of sampling distributions in statistics? Give your own real life example of this using a distribution histogram, table, pictures etc.

Answer 1

Sampling distributions are important for inferential statistics. In practice, one will collect sample data and, from these data, estimate parameters of the population distribution. Thus, knowledge of the sampling distribution can be very useful in making inferences about the overall population.

For example- when you record your expenses for many days then you can use distribution histogram or table to evaluate how much you spend on a particular category and decide whether you are managing your money wisely or not