What Limit is
In statistics, the term “limit” is used to describe the upper and lower bounds of a data set. A limit is typically determined by the range of data points in the set, but can also be determined by other factors, such as the number of data points in the set.
The following are the steps for determining a limit:
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Calculate the range of the data set. This is done by subtracting the smallest data point from the largest.
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Determine the upper and lower limits. The upper limit is the largest data point plus half the range, and the lower limit is the smallest data point minus half the range.
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Check the limits against other factors. If the data set contains a large number of data points, the upper and lower limits can be adjusted to account for this.
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Adjust the limits as necessary. If the limits need to be adjusted, the process should be repeated with the new limits until the desired result is achieved.
Examples
- Setting a limit on the number of trials in a hypothesis test.
- Placing a limit on the size of a sample when collecting data.
- Establishing a maximum or minimum value for a statistic of interest.
- Applying a threshold or limit to a variable when performing statistical analysis.
- Establishing an upper or lower limit for a confidence interval.