Your Ask Joey ™ Answer

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. 


Back To All Questions

You might also be interested in...

  • CECL Excel Workbook

    If you would like to use the Excel workbook that was used to create the Universal CPA lecture on CECL for debt securities, please click the link below to download the Excel workbook: CECL Calculation workbook (Universal CPA Review)

  • Journal Entry for Direct Materials Variance

    Journal Entry for Direct Materials Variance In the current year, Mission Burrito budgeted 6,000 pounds of production and actually used 4,000 pounds. Material cost was budgeted for $5 per pound and the actual cost was $8 per pound. What would the debit or credit to the direct material efficiency variance account be for the current...

  • Understanding Variance Analysis

    Variance Analysis Variance analysis is a method for companies to compare its actual performance vs its budgeted amount for that cost measurement (related to the flexible budget). The differences between the standard (budgeted) amount of cost and the actual amount that the organization incurs is referred to as a variance. By analyzing variances, the company...