Resolved: Confusion on the data scientist salary example: CLT, n and calculation fo the standard error- confus
Hello, in the standard error formula after applying the CLT, I m a bit confused with what is n? Is n the number of observations in each random samples or is it the number of samples we choose to create the sampling distribution.
2. In case n is the number of observations in each sample, does it mean that in CLT all the randomly chosen samples must have the same number of observations?
3. In the example for Data scientist salary, we have only 1 sample, why do we use its mean as the population mean?
Hi Emmanuel,
Good to hear from you!
n is the number of observations you have in the sample you're using to calculate a confidence interval.
I don't think you need to always have the same number of observations in your randomly chosen samples. As a rule of thumb, if you have more observations, you will have a narrower confidence interval.
Best,
Ned
Thank you Ned, very helpful