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Sigma notation, often referred to as summation notation, can be used in many common situations. For example, it can be used to calculate the sum of deposits for a bank account. Banks add together all deposits and withdrawals to determine the current balance.
The standard error decreases as the sample size increases and approaches the size of the population. Sigma (Ï) denotes the standard error; a subscript indicates the statistic. For example, the standard error of the mean is represented by Ï M. To find the standard error of the mean, divide the standard deviation by the square root of the sample size: , where Ï is the standard deviation of the original sampling distribution and N is the sample size.