Question

Write the definition of inferential statistics. Give an example.

Answer 1

Inferential means making inference or predictions. Inferential statistics is making prediction based on a sample dataset of a given population. Hypothesis testing is an example of inferential statistics where we make conclusions about population parameters based on sample statistics.

It is very useful because we cannot quantify the whole population but for reasearch purposes we can use a sample from that population and based on the sample results we make conclusion about the whole population.

Suppose a new medicine is going to be launched in the market. So hypothesis testing may be done on a sample to find the effects of it whether it's effective or not.