Discuss Inferential Statistics in detail?

Inferential statistics helps to develop a good understanding of the population data by analyzing the samples obtained from it. It helps in making generalizations about the population by using various analytical tests and tools. In order to pick out random samples that will represent the population accurately many sampling techniques are used. Some of the important methods are simple random sampling, stratified sampling, cluster sampling, and systematic sampling techniques.

Types of Inferential Statistics

Inferential statistics can be classified into hypothesis testing and regression analysis. Hypothesis testing also includes the use of confidence intervals to test the parameters of a population. Given below are the different types of inferential statistics.

  • Hypothesis Testing: It is a type of inferential statistics that is used to test assumptions and draw conclusions about the population from the available sample data. It involves setting up a null hypothesis and an alternative hypothesis followed by conducting a statistical test of significance. A conclusion is drawn based on the value of the test statistic, the critical value, and the confidence intervals.
  • Regression Analysis: Regression analysis is used to quantify how one variable will change with respect to another variable. There are many types of regressions available such as simple linear, multiple linear, nominal, logistic, and ordinal regression. The most commonly used regression in inferential statistics is linear regression.