© All Rights Reserved

4 views

© All Rights Reserved

- Chapter 03
- 131-0404
- Encyclopedia of Statistics
- Global Autopoietic University PDF
- Learning Activity 5.19 Psy
- Role of Executing E-commerce for Small and medium enterprises in Danang city
- Econometrics Lectures
- Add math
- Probability Staistics
- Statistics Back to Basics
- AP Statistics SAMPLE 1
- In the Heart of the Limba Tree
- MB0040-Statistics for Management
- MB0040 – Statistics For Management - SET 1 - F
- E177
- Syllabus Upload
- math i stats curriculum guide
- Spatial Variability in Soils (Jamshidi)
- Data Analysis1
- Chapter 1

You are on page 1of 17

Quantitative Introduction to Risk and

Uncertainty in Business

4-1

Chapter Four

Numerical Descriptive Techniques

4-2

9/1/2015

Arithmetic Mean

Mean or Average

N

Population Mean:

i 1

N

n

Sample Mean:

x

i 1

4-3

Mean Time Spent on the Internet

0

12

33

14

22

4-4

9/1/2015

Median

The middle value

Must first sort the date into ascending order

0

12

14

22

33

4-6

Median Long-Distance Telephone Bill

Recall our Long-Distance Telephone Bill

Data from Data File Xm03-01.xls

Interpretation: half the telephone bills are

below 26.905 and half are above 26.905

4-7

9/1/2015

Mode

Observation that occurs most frequently

Best to sort the date into ascending order

0

12

14

22

33

4-8

Mode Long-Distance Telephone Bill

Recall our Long-Distance Telephone Bill

Data from Data File Xm03-01.xls

Two issues with the mode:

may not be central

may not be unique

4-9

9/1/2015

Measures of Variability

Range

Largest observation Smallest observation

Advantage: simple

Disadvantage: simple

4-11

Measures of Variability

Range

Set 1

4

50

39

50

Set 2

4

15

24

4-12

9/1/2015

Measures of Variability

Variance

N

Population Variance:

i 1

N

n

Sample Variance:

s2

x x

i 1

n 1

4-13

Measures of Variability

Calculating Sample Variance

8

xi

xi x

11

xi x 2

4-14

9/1/2015

Measures of Variability

Standard Deviation

Population St. Deviation:

s s2

Data from Data File Xm03-01.xls

4-17

Measures of Variability

Comparing Two Data Sets

Lets explore the interpretation of variance

using Excel and Data File Xm04-08.xls

4-18

9/1/2015

Empirical Rule

4-19

A histogram of returns on an investment is bellshaped and has a mean of 10% and a s = 8%.

How is the distribution of the returns?

4-20

9/1/2015

Chebysheffs Theorem

The proportion of observations

in any sample or population that lie

within k standard deviations of the mean

is at least

1

1

for k 1

k2

4-21

Chebysheffs Theorem

example

Salaries of a computer store are positively

skewed. Mean =$28,000, std.dev=$3,000.

What can you say about these salaries?

4-22

9/1/2015

Measures of Variability

Coefficient of Variation

ratio of standard deviation to mean

Population Coeff. Of Variation:

CV

cv

s

x

4-23

Percentile

the Pth percentile is the value for which

P% are less than that value and

(100-P)% are greater than that value

4-24

10

9/1/2015

Quartiles

Values that divide our data set into fourths

Q1 = 25th percentile

Q2 = 50th percentile

Q3 = 75th percentile

4-25

The location of a percentile

LP n 1

P

100

4-26

11

9/1/2015

Calculate the 25th, 50th and 75th Percentiles

for Time Spent on the Internet(Quartiles)

0

12

14

22

33

4-27

Interquartile Range

another measure of variability

IQR Q3 Q1

4-31

12

9/1/2015

Box Plot

Graph of five statistics

Minimum and maximum data values

1st, 2nd and 3rd Quartiles

Determine outliers using IQR

1.5 times IQR less than Q1

1.5 times IQR larger than Q3

4-33

Covariance

N

Population Covariance:

xy

x

i 1

x y i y

N

n

Sample Covariance:

sxy

x

i 1

x y i y

n 1

4-36

13

9/1/2015

Calculating Covariance

mean

24

27

18

23

xi x yi y xi x yi y

4-37

Coefficient of Correlation

Population Correlation:

xy

Sample Correlation:

rxy

1 1

xy

x y

sxy

sx sy

1 r 1

4-38

14

9/1/2015

Least Squares Method

Simple Linear Regression

(simple => two variables only)

Two variables

Independent Variable

Dependent Variable

4-40

Which variable is which?

Example:

Salary vs. Grocery Bill

4-41

15

9/1/2015

Lets explore the Least Squares Method

using Data File Xm04-17.xls

4-42

Regression Line

+e

-e

4-43

16

9/1/2015

Least Squares Method

y b0 b1x

y mx b

4-44

Least Squares Method

b1

sxy

sx2

b0 y b1x

4-45

17

- Chapter 03Uploaded byAdnan Akhtar
- 131-0404Uploaded byapi-27548664
- Encyclopedia of StatisticsUploaded bybedanta87
- Global Autopoietic University PDFUploaded byAnte Lauc
- Role of Executing E-commerce for Small and medium enterprises in Danang cityUploaded byTrinh Le Tan
- Learning Activity 5.19 PsyUploaded byyolanda Sitepu
- Econometrics LecturesUploaded byDevin-KonulRichmond
- Add mathUploaded byyin
- Probability StaisticsUploaded byBhavin Panchal
- Statistics Back to BasicsUploaded bymsulgadle
- AP Statistics SAMPLE 1Uploaded byPatrick Collins
- In the Heart of the Limba TreeUploaded bywoodculther
- MB0040-Statistics for ManagementUploaded byTusharr Ahuja
- MB0040 – Statistics For Management - SET 1 - FUploaded bynanna9944
- E177Uploaded byAngel Carranza
- Syllabus UploadUploaded byjoe_ochiltree
- math i stats curriculum guideUploaded byapi-234592105
- Spatial Variability in Soils (Jamshidi)Uploaded byKatty Tps
- Data Analysis1Uploaded byTripty Khanna Karwal
- Chapter 1Uploaded byblade
- Finance 2Uploaded byaiza
- Exercise Chapter 3Uploaded byflathogath
- Correllation ERMUploaded byYasirafsar
- Exercise_Solutions.pdfUploaded byArun Pattanayak
- tasmuUploaded byKichu Krishnan Unni
- Question BankUploaded bySamrat Pandey
- Chapter16 SlidesUploaded byParth Rajesh Sheth
- DataUploaded byAce Borres
- OutUploaded byaantarixx
- CorrelationsUploaded byWaqas Shaheen

- OPRE 6301-SYSM 6303 Chapter 11 Slides_students_updatedUploaded bySrinivas Reddy
- OPRE 6301-SYSM 6303 Chapter 09 Slides_studentsUploaded bySrinivas Reddy
- OPRE 6301-SYSM 6303 Chapter 12 Slides_students_S16Uploaded bySrinivas Reddy
- OPRE 6301-SYSM 6303 Chapter 13 Slides_studentsUploaded bySrinivas Reddy
- OPRE 6301-SYSM 6303 Chapter 10 Slides_studentsUploaded bySrinivas Reddy
- OPRE 6301-SYSM 6303 Chapter 08 -StudentsUploaded bySrinivas Reddy
- OPRE 6301-SYSM 6303 Chapter 07 Slides_studentsUploaded bySrinivas Reddy
- OPRE 6301-SYSM 6303 Chapter 02 -StudentsUploaded bySrinivas Reddy
- OPRE 6301-SYSM 6303 Chapter 03 - StudentsUploaded bySrinivas Reddy
- OPRE 6301-SYSM 6303 Chapter 05 - StudentsUploaded bySrinivas Reddy
- OPRE 6301-SYSM 6303 Chapter 06 -StudentsUploaded bySrinivas Reddy
- OPRE 6301-SYSM 6303 Chapter 01 - StudentsUploaded bySrinivas Reddy
- Normal Distribution Case - SolutionUploaded bySrinivas Reddy

- Chi SquareUploaded byshobana
- ch05Uploaded bySakib Sayed
- notes_co905_12Uploaded byGerasimos Politis
- BAHIRDAR ComputerSci&Eng FinalUploaded byTsegaye Andargie
- Lecture 26 - Sampling Distribution Proportion.pdfUploaded bysound05
- Elements of Information Theory.2nd Ex 2.4Uploaded byRicardo Fonseca
- Ensemble Average and Time AverageUploaded byilg1
- 20170516101123_STAT6111-PPT6-R1Uploaded byNajia Al Umri
- ch05ppt__2018_11_03_14_22_45.pptUploaded byBijal Danicha
- Normal DistributionUploaded bykarl24
- Etc 2410 NotesUploaded byMohammad Rashman
- Math350S10HW11SolUploaded byAkshaya Kumar Panda
- Ssc Cgl Syllabus 2018 PDFUploaded bypremendra mani
- Discrete Probability DistributionUploaded byMutia Zahara
- Algebra ProbsUploaded bySarthak Garg
- Pages From Lemh207Uploaded byAbhiman
- Mb0040 Statistics for Management Assignments Feb 11 ( Rs *00 )Uploaded byArvind K
- descriptivestatistics-130819083446-phpapp02.docUploaded byManish Gupta
- Assignment Sms IdaUploaded bynurzahidahraman
- normality skewness kurtosisUploaded byapi-285777244
- Elements of Statistics - Fergus Daly, Et AlUploaded bymach20_aardvark8064
- Rr210403 Probability Theory Stochastic Process 2005 SupplyUploaded byapi-3818050
- Terence McKenna - A Weekend With Terence Feb. 1992Uploaded bygalaxy5111
- Stochastic Calculus Cheatsheet stocalc.pdfUploaded byAbraham Sauvingnon
- Kedah Mahsuri MATHS T, SEM 3 2015Uploaded bylingboo
- Mid Exam Analisis AlgoritmaUploaded bySofy Fitriani
- 435 Syllabus.pdfUploaded byAnonymous 4i43iJ
- CheatSheet_Exam1Uploaded bySamantha Koy
- Rr210403 Probability Theory and Stochastic ProcessUploaded bySrinivasa Rao G
- Final Copy.docxUploaded byMohamed Elsaied