In: Finance
For each statement, decide whether descriptive or inferential statistics is used.
a. The average life expectancy in New Zealand is 78.49 years (Source: World Factbook).
b. A diet high in fruits and vegetables will lower blood pressure.
c. The total amount of estimated losses for Hurricane Katrina was $125 billion (Source: The World Almanac and Book of Facts).
d. Researchers stated that the shape of a person’s ears is relative to the person’s aggression.
e. In 2050, it is estimated that there will be 18 million Americans who are age 85 and over.
a.
The given statement represents descriptive statistics.
Reason:
It is given that, in New Zealand the average life expectancy is 78.49 years. Here, the statisticians describe the average life expectancy.
b.
The given statement represents inferential statistics.
Reason:
It is given that the blood pressure can be lowered by the intake of more fruits and vegetables. Hence, it is clear that the generalized result to the population (all adults) is made from the sample of adults.
c.
The given statement represents descriptive statistics.
Reason:
The given study describes the loss due Hurricane Katrina. Here, the total loss amount was estimated to be $125 billion.
d.
The given statement represents inferential statistics.
Reason:
It is given that the person’s aggression depends upon the shape of a person’s ears. Hence, it is clear that the generalized result to the population (all adults) is made from the sample of adults.
e.
The given statement represents inferential statistics.
Reason:
From the given statement, it is clear that the prediction made about the U.S. Americans who are aged 85 and over (population) would be 18 million.
From the given statement, it is clear that the prediction made about the U.S. Americans who are aged 85 and over (population) would be 18 million.