Stat – 702

Things to remember!

• Types of Statistics: 2 types – Descriptive and Inferential.

• Descriptive is based on numerical and graphical procedures.
• Inferential draw conclusion based on sample.
• Population is totality of units.
• Results calculated from Population are called Parameters.
• Parameters are denoted by Greek Letters { β, α, σ, μ…}
• Population Mean is denoted by: μ
• Parameters are Fixed Quantity.
• Sample is representative part of Population.
• Sample results are denoted by English Letters.
• Sample mean is denoted by: X̅
• Sample results are called Statistic.
• Statistic is a Variable Quantity.
• Statistical Inference is a procedure used to draw conclusion about
Population Parameter on the basis of Sample Statistic.
• Quantitative (Measurable, Numerical)
• Qualitative (non-numerical)
• Qualitative is measured in – Nominal Scale (used for identification
purpose), Ordinal Scale (used for ranking purpose).
• Quantitative is measured in Interval Scale (show state), Ratio Scale(Height,
weight).
• Types of Data – Primary, Secondary.
• Primary data is firsthand information.
• Secondary data is organized form of data on which some stats is applied.
• Comparative Analysis – measuring which is better among population.
• Associative Analysis – finding relationship between two objects.
• Predictive Analysis – Predicting future behavior on the basis of current
behavior.
• Measures of Central Tendency – Arithmetic Mean, Geometric Mean. Etc.
• Measures of Dispersion (MOD) – Variation, Standard deviation, CV. Etc.
• Types of MOD – Absolute (Range, Mean, SD, Variance etc.) Relative (CV,
CR, CQ, Cm.)
• Standard Deviation is square root of Variance.
• Less Variance = More Reliable
• High Average = More Reliable
• Estimation Types – Point Estimation, Interval Estimation.
• If probability is added in interval estimation it is called Confidence Interval.
• Point estimate – single/fixed value.
• Interval estimation – Define boundary value.
• Interval estimation is more Secure than point estimation.
• Six Sigma approach e.g., -6 +6 from SD.
• Null Hypothesis always have sign of equality.
• T-Test is used to test an assumption applicable to population.
• Critical Region always depend on H1.
• Alternate Hypothesis is also called Research Hypothesis.
• While comparing two or more than two mean, T-pool or T-Prime test are
used if samples are Independent.
• If population variance is given & equal use t-pool. If not given, test variance
is equal or not.
• If population variance is unequal t-prime are applied.
• If samples are Dependent use t-pair / Paired T test.
• If S increase then tcal decrease.
• If S decrease then Pvalue increase.
• If n(sample size) decrease then tcal decrease.
• If n increase then tcal increase. (they have direct relation)
• Sample Size and Pvalue have Inverse Relation.
• Types of Diagrams – Bar, Multiple Bar, Component, Pie.
• Types of Graphs – Histogram, Historigram, Frequency Polygon, Frequency
Curve, Ogive (cumulative frequency polygon)
• Symmetrical Distribution – mean = median = mode.
• In Minitab Ttab value = Pval
• If Pvalue < α then Reject Ho.
• If Pvalue > α then don’t Reject Ho.
• Median divides dataset into 2 equal parts.
• Quartile divides dataset into 4 equal parts.
• Decile divides dataset into 10 equal parts.
• Percentile divides dataset into 100 equal parts.
• Median = Q2
• Median = D5
Median = P50 (contact for further details )