What is defined as a subset of observations in a population?

A subset of observations in a population is best defined as a sample. In statistics, a population refers to the entire group of individuals or items that are of interest for research or analysis. A sample, on the other hand, represents a smaller portion of that population, selected for the purpose of making inferences or generalizations about the population as a whole.

Using a sample is particularly important in research because studying an entire population may be impractical or impossible due to time, cost, or resource limitations. By analyzing a sample, researchers can still obtain valuable insights and information without needing to assess every member of the population. This concept is foundational in both statistical analysis and hypothesis testing, making the understanding of samples crucial in business analytics and research studies.