Statistics
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Why we divide by n-1 for the unbiased sample
- Since we usually don't know the real \(\mu\), the population mean.
- So, we resort to use the sample mean to calculate the sample variance.
- The problem is:
- Since the sample size is smaller than the population size
- it is more likely that the values are more close to each other.
- Therefore, \(\sum(x - \bar{x})^2\) is usually smaller.
- To compensate this, divide by \(n-1\), which results in the larger value.