View source for Parameter (statistics)

== Definition ==
In [[Statistics|statistics]], a parameter is a quantity that defines certain characteristics of a given [[Statistical population|population]] or a [[Statistical model|statistical model]]. It is a constant that describes a statistical population and can be considered as the theoretical value of a [[Random variable|random variable]].<ref>{{cite web|title=Parameter|url=https://www.britannica.com/science/parameter-statistics|access-date=2021-09-23}}</ref>

[[Image:Detail-31822.jpg|thumb|center|A close-up of a statistical report showing various parameters.]]

== Types of Parameters ==
There are several types of parameters that statisticians use to describe populations and statistical models. These include:

=== Scale Parameter ===
The scale parameter, also known as a dispersion parameter, is a kind of statistical parameter that indicates the spread or variability of a distribution.<ref>{{cite web|title=Scale Parameter|url=https://www.statisticshowto.com/scale-parameter/|access-date=2021-09-23}}</ref>

=== Location Parameter ===
The location parameter, also known as a central parameter, is a statistical parameter that indicates the center or location of a distribution.<ref>{{cite web|title=Location Parameter|url=https://www.statisticshowto.com/location-parameter/|access-date=2021-09-23}}</ref>

=== Shape Parameter ===
The shape parameter is a kind of statistical parameter that describes the shape of a distribution.<ref>{{cite web|title=Shape Parameter|url=https://www.statisticshowto.com/shape-parameter/|access-date=2021-09-23}}</ref>

[[Image:Detail-31824.jpg|thumb|center|A chalkboard with various types of statistical parameters written on it.]]

== Estimation of Parameters ==
Estimation of parameters is a fundamental aspect of statistics. It involves the process of using sample data to estimate the parameters of the population from which the sample was drawn.<ref>{{cite web|title=Parameter Estimation|url=https://www.statisticshowto.com/parameter-estimation/|access-date=2021-09-23}}</ref>

=== Point Estimation ===
Point estimation is a type of parameter estimation that provides a single, best guess of the parameter.<ref>{{cite web|title=Point Estimation|url=https://www.statisticshowto.com/point-estimation/|access-date=2021-09-23}}</ref>

=== Interval Estimation ===
Interval estimation is another type of parameter estimation that provides a range of values within which the parameter is likely to fall.<ref>{{cite web|title=Interval Estimation|url=https://www.statisticshowto.com/interval-estimation/|access-date=2021-09-23}}</ref>

[[Image:Detail-31826.jpg|thumb|center|A person calculating parameter estimations on a whiteboard.]]

== Importance of Parameters in Statistics ==
Parameters play a crucial role in statistics. They help in the formulation of a statistical model and provide a basis for statistical inference. Parameters also play a key role in hypothesis testing and estimation.<ref>{{cite web|title=The Role of Parameters in Statistics|url=https://www.statisticshowto.com/parameters-in-statistics/|access-date=2021-09-23}}</ref>

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== See Also ==
* [[Statistical Inference]]
* [[Hypothesis Testing]]
* [[Statistical Model]]
* [[Random Variable]]

== References ==
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[[Category:Statistics]]
[[Category:Mathematical Terminology]]
[[Category:Data Analysis]]