University Of Dhaka

Course Title: Business Statistics

Course Code: FB – 508

Section: A

Submitted To:
Prof. Md. Main Uddin, PhD
Chairman

Department of Banking & Insurance

Faculty of Business Studies

University of Dhaka

Submitted By:
Halima Aktar Panshy

ID: 51943037

Submission Date:
31 December 2020
 Answers of Examination Question

1. Limitation of using group data: Using group data has some limitations like,

The use of group data can be expensive to implement.

It’s not useful when there are no homogeneous subgroups.

It may hide patterns if intervals are badly chosen.

This also needs selection of relevant stratification variables which is harder.

2. Reason of calling regression analysis as least squares regression: A form of mathematical

regression analysis used to determine the line of best fit for a set of data, providing a visual

demonstration of the relationship between the data points is known as the least squares

regression method. Each point of data represents the relationship between a known

independent variable and an unknown dependent variable. On the other hand, Regression is

also doing that same thing. So regression is called least squares regression.

3. Benefit of using regression over simple average for prediction: As we know simple average

influenced by outliers heavily so it doesn’t provide accurate results. But the regression

method of forecasting involves examining the relationship between the dependent and

independent variables. Thus it provides more accurate prediction by analysing data properly.

So that’s the benefit of using regression over simple average for prediction.

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4. The way significance level is used in statistics along with probability value: The significance

level is denoted by α which is the probability of rejecting null hypothesis when it is true. We

reject null hypothesis if p-value is very small, more precisely, when it’s smaller than the

significance level and we do not reject null hypothesis if p value is greater than significance

level.

5. Meaning of statistically significantly different: A statistically significant result is a result

that’s not attributed to chance. More technically it means that if the null hypothesis is true.

Statistical significantly different is a determination that a relationship between two or more

variables is caused by something other than chance.

6. Difference between false positive and false negative: False positive is a result that indicates

a given condition exists when it does not. A false positive error is a type I error. Where false

negative is a test result which wrongly indicates that a condition does not hold. A false

negative error is a type II error.

7. The use of relative and cumulative frequency: A relative frequency table is a table that

records counts of data in percentage form. It is used when we are trying to compare

categories within the table. Cumulative frequency is used to determine the number of

observations that lie above or below a particular value in a data set.

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 Assignment

8. Relationship between Margin of Error and Interval Estimate:

In statistics interval estimation is the use of sample data to calculate an interval of possible

values of an unknown population parameter. Which is in contrast to point estimation that gives

a single value. Where margin of error is an interval estimate which is a pair of percentages

surrounding a guess about some attribute of the full population based on a random sample

from that population. For example, if we want to find out mean educational expenditure of a

student, suppose the mean expenditure of all student of same class is $3500 per month and in

other way we may obtain an interval by subtracting a number from $3500 and adding the same

number to $3500. Then we’ll find two sum which will provide the mean value in between as

interval estimation. Here the point estimate of subtracting and adding is known as margin of

error.

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