Lesson 2 of 23 · All lessons in this module
- The central limit theorem
- The standard error of the sample meanVideo lesson
- Confidence intervals for the mean
- Value at risk: a one-sided confidence interval
- Populations, samples and sampling error
- Stratified and cluster sampling
- Good estimators, and the CLT across sampling designs
- Convenience and judgmental sampling, and choosing a method
- The four steps and stating the hypotheses
- Type I and Type II errors, significance and powerVideo lesson
- Critical values, p-values and the decision ruleVideo lesson
- p-values and p-hacking
- Testing a single mean
- Two means: independent vs paired samplesVideo lesson
- Testing variances: chi-square and FVideo lesson
- The t-test for a Pearson correlation
- Sample size, p-values and many correlations at once
- Parametric vs nonparametric tests
- The Spearman rank correlation testVideo lesson
- Contingency tables and the chi-square test of independenceVideo lesson
- Interpreting the result: standardized residuals and mosaics
- Choosing the test: four steps and a map of every test
- Integrated cases: testing whether a new strategy beats the old one
This lesson is part of the 2027 curriculum. You are following the 2026 curriculum, where it is not taught in this form. Switch if you are sitting the exam under the 2027 curriculum.
Lesson 2 of 23 · 13 min
The standard error of the sample mean
The standard error measures how precisely a sample mean estimates the population mean: , or when is unknown.
In short
- The standard error of a statistic is the standard deviation of its sampling distribution. For the sample mean: .
- When is unknown, which is almost always, use , with the sample variance computed using .
- Standard deviation describes how spread out the data are; standard error describes how precise an estimate is. The terms are not interchangeable.
- The standard error falls with : quadrupling the sample halves it. Required sample size: .
- If a question gives a variance, take its square root before dividing by .
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