Ask Joey ™ a Question

What’s the main difference between population size and population variability?

Population size refers to volume while population variability refers to composition. For example, if we think about the population of citizens that live in New York City, population size would simply refer to the number of citizens that live in NY. 


However, if we think about population variability in NYC, we would look at the different characteristics of the citizens in NYC to see just how different everyone is. We might look at race/ethnicity, we might look at job sector, we might look at house household income. 


The idea is that if population variability is high, that means that the population is quite different. So for sampling purposes, it’s harder to sample a population with high population variability because the sample we test may not be representative of the overall population. 


You might also be interested in...

  • What are deferred inflows and outflows in encumbrance accounting?

    For deferred outflows of resources, its the consumption of resources that relates to future periods. This is similar to prepaid expense as we’re consuming net assets now and deferring the expense to a future period. For deferred inflows of resources, it’s the acquisition of net assets that is applicable to a future period. So for deferred […]

  • When does a company perform a goodwill impairment test?

    Under U.S. GAAP, a public company must test goodwill for impairment at least once annually. The company must use discretion to determine when the test is performed (i.e., what month?). The important thing to remember is that U.S. GAAP does indicate that the goodwill impairment test should be performed at the same time each year. […]

  • What is a transaction processing system?

    A transaction processing system is a type of information technology system that processes or executes transactions that occur in the normal course of business. Examples include receiving orders from customers, processing shipments to customers, paying employees, etc. Transaction processing systems are not typically uses to make strategic decisions.