MAKE EASY [isd Delhi University B.A. ECO (Hons) SEMESTER lll ECONOMICS NJ INTERMEDIATE MICRO ECONOMICS-F iG 31) INTERMEDIATE MACRO ECONOMICS 1 (HC 82) STATISTICAL METHODS FOR ECONOMICS (HC 33) Rs.150 MAKE EASY & BROTHER'SSYLLABUS As Per Revised Syllabus (vith effect from B.A. (Hons) Economics Year HC31: Intermediate Microeconomies.1 (He 31) HC 32: Intermediate Macrocconomice] HC 433: Statistical Methods for Economies M831; Skill Enhancement Elective Courses (SEC) Data Anal Ttermed Sede ew he tlsan bees the consume snore ierocconomies (HC | vnisar “Sjiand' geet coniion: Tchcoyy, nese | gun ca extern en and ion rat Laing Nihon G00 Fandom mean Cengage 22 MEH 20, meme miro A maden ipa on aan H. 018) We audents thomas sageenes 2 “E Dorusch R, Fiche. S. Stare 2018) Macroeconamic, 10h ed Me "Fons goa Mticocenic th WM None Syllabus. ‘Methods for Economies (HC 53) (Sansui oem one ches students the basic SERRE fetches ae pane Sea Epi ie eo iar menace Silence tong poppeisiens tom tose Rlescak meon agin unt nang pores id overview ? The distinction Between ‘populations cau pies mar pemiew,: The diuntion between populionsSeon snsans Elementary probability theory : Sample: aniciye ant ropes, courting ena cemstonal foosseny seat versie easel iinbuude eepeced Values and useises ‘oy monty use ieee and fy: Rabon sing ad joy dud random varibles: Dery ag Eetemety i" Beste 20 Pecks and Sane fr engi ‘SPMilter 1. Aiiller MC (2047) 1. Freund's mathematical statistics wi Syllabus Skill Enhancement Elective Courses SEQ) L _Data Analysis (HS 31) create «_ fatee SR ore oa epee ee eee soley dit eeoune hve amore aes at See SNS tea word probleme ately een Wa nteteneey ing 9, Span Br ba I Sisto mange es wath NT Data Analysis Ee] ‘Skills Enhancement Elective Course (SEC) ration and analysls of ‘0.1 Introduction tothe course. How can the representa dats uu dy real word problem net ttrction tothe Course Big Data: Big dat ate collections of data that ca eee ono or analyzed uring traditional methods. Big data smplcy SRESIEY SHE Beng colected in huge volumes. at very fast rates or vetocticy Cat Sly ininese el lime) and ima variety of forms oaher than the fad (expla rns nuh as data poocesing records, ies and ablesand worksheets Seca ort Flame, velocity and wares distinguish Wi data ftom ase of ne‘ comais wre sume any cured vas of fo sae te sen sem and saat methods typally combine and TENE SAB Tan or you ard then prsen he oslo that processing, arcane Vetus Uroteerured Data suustured Versus Unetractred Data suns nately one stare cto nee tes 2 rari sqacrre, For evamgle, to deeply analy a group of companies, Fer fier sacred dats nthe form of published abies of financial ta TRU contr of ilartne ni docents tat eco formation om Tres sceidirioued However you might sa collet unstructured data uc {soca mein posts and nyse tha dnt he otra epeting aac Sian data can form porta a big ata coection. When analyzed a mete sbig dats colecion. you pally be the results of he preprocessingand Pe Ste ee dattared data sel Because unetrsctured data usually has some (Sea roe nator toe nm ne ae SISST RA TeauSe ith tna term understand that this book's use of the phrase ‘Uctucred data meneporates that eategory “Gating stared Lesrning Statistics Learning the operational definitions preset definitions an expnations tht all can understand clay. ot several EsSitesms isa pod way to get ote letningsttsies Statistic ‘lotic: welts toa value that summaries tne date of» patil she Dinh) Hestal aotuchons exampie the statement fof 2015, weekly grosses (Sve up srs om 2007" cits asatne that summarizes the Variable weekly FFovserosing the 3013 dta-all 2 values, ‘ise Microvoit Exel for Statinites + Mlcrosot Excel i the dat component of ictosott Offic that evolved from enriereleconic spteadsnects ‘ad accounting and nancial ppitatons Ia Excel jou use workahets (0 Shown as spreadsheet) that organize dats im rabular blocks ay well sy store KGrmulatietuctions to process tht data, You make entries in worksheet cells thor formed Sythe leeaccions of worksheet roves and columns. You eer to Inaleidua els by theirs ior an row number aadeeas such as AlTor the ‘Sppermos lel tp cell om column A ana tow 1) Into each cell you place a ingle oDeep: ns) ami Seer HE) Bore een Pa pe sell rots ce apes SeRRe al ee Rtn cone ae me SENSE itn onset oi Se Prenton ditlerent slides" (shees).much ike «se show For caanpe nea resent on separate sheets the summary table and te chart forte data the paztsof the solution that usersmaychangeiequenly chan portion See Bre ote al nee earner Shatr sntude farkbooks have a "Data" worksheet one of more werlahecs and ioc “oh ee & ning Vatables: When» proper business Erablem or objective has teen indented yu can beg oneaane ae Tes theta ey We gps asain ek Rit dy cnt te cua tesa Spc datareader oe Sinden ee cet a he eave Sse Grainne hates Saito’ cried sna ae Ce tere erty Ea Cine ds ieee cee ara tea coer SRS ci no iat ta Be {tlables include variables that tepresent a "number of something’ such as the Gr any value ain a gontraum or an interval et othe pecan 0 the Sem nae ciation een em Data Analy a aeay ie aes itn Seren aera aster mgeurtooeae me Sint Stes seellenenntunes iecanet Sue eieaerieeaacconyemen eugene Sea conan Serie lem ictal Seisstae ices Seas tnt oneetseesmmen eens Sheer eerie tenet roe ge Sears ieee eens ponte emerson see ate ean ec ee are rarer etn arta LER a Arias cies aecanmae ene Srnec Osis antenatal ie Eptaawes cer abaegu ans roan ctr res Eas es eam og mn ene Ceri a ty oe nase Sn Ser Serene epi g eey rereeae Sie Soe eather ory eet eta mega tor bee staan ee CE at ar Se rin at Cerin coteaneay aS eimai eee yaa, Bete at ate ae tl ea cr Se mew eco a ee Scented Sembee vor Smog en al Tere cake ft nen ci ae hen you calle dna by seeing #0, anal singe Fh be eee raatn sn Gang your fame, yest eferarongrnsbty see SPipeshatiy sample tes non-real, 04 208 ‘er nu pokes, Whenever He Pe ceil——_r- Deeps: 1.4 (tons) Bonomi Sameset) (C9CS) should usea probably mph abou the population being anaes see el eee th a8 coneemunce peed and oer Se ise the theory of stat on prcbatiy seem copys Sle Syne Sette ce Simple Random Sample : aay tee a cei aera en ame SERS he omecner lithonia aN ge ged Hee andon ning Soy enc hens eto Spree the ae Sie ou numba ey rm te ee eS £ items in the frame. Then, vou select the remaining n-—1 ite y taking every Lit item thereafter from the enitire frame. : eres riper hint nae fine ul ane Fandom simples Srafed smpling t more elicit taney see eS Exmpling enables you to reach conclusions atodteachsoaes ning ge Peat EIRE2 lied mpl irs th you ez diene the varia) on which Sener Sap iT eae ye 20 [UNIT] ’ s Using Dasa Data Preparation: As you colle dts, you may new to peeform scons ‘rod sit ncoatencsae wel pce eats te formar and ves) ‘uted the sofare you uta pertorm alana (tron Exel roe Data Cleaning: Perhapathemer rial dat preparation skis ata leaning thefindingand pomibetiningoeguaricninhe data you calc negate that you find inlude undefined or tponibie aloes ss wel ss scald musing ‘alues data tht were notable to be collected fora variable fan therefore Mat ‘alinbe for analy ata Formatting: You may need 1 sformat your data when you collect your dat, Reformatting can mean teaeranging te stucture of the data or changing thesiectroncencaing of he data orth For example suppose tat you seek ‘lect financial dats Sbouts sample el companies, You tight find these de Stricture ss tables of dat, asthe contents of standard for, ins continuo Sook ticker seam, of as messages ox Bag enees ht appear on various webs. ‘These data sources have various levels of structure which affect the eae ‘eformsting them oF se Independent of he stactre the data you collet a Sint nan toni rm hat eds ob charge in tre arly fxampe, data presented ss dig picture of Eee worksheets would need ‘hanged into a chal Excel warkahee before that data could be analysed ‘Sucked and Unatacked Varables When colecing data fora numeral ‘arable you sometimes want subivige that dt ino to oF more groupe Be nays For eample if you were collecting data about the cost of area teal nan urban aes, you might want to consider the cost of mene return. Sen jou wan fo der two or more roup, You can arnge yours “To use an unstacked arrangement you create seperate numerical variables cach group Inthe example, you would exete a cent cy meal ont walle snd ‘eed vribie to hal he meal costs st metro aren resturants, To use a Raced Srrangoment format, you palr the single numercal variable meal cost witha ‘Scand cntopoicalvalbl that contra two categories, such an centre hy ad Recoding Variables: After youhavecollected dota, you may need to record the categorie that you defined fora eategorical variable or ansform 2 marerie “tris a cate vanbe by angi th nial purer waves ‘one of several group. In ether case, You can deline a recoded variable th ‘upplement or places the orginal warble in your analysis. i For example, having already defined the vase class standing with 9 cavegorics freshman, shopmore nor and senor, you dele that you wank 5 ‘‘ Deepa. 4.0 PA: A (Hos Economies Semester (CBS) sou BBE Of Survey Lara : Surveys con sulle SRR tps of survey ears coverage enon sone ne nan the tg esc on noneesponae en sapling eg, Goverage Lito: Cnverageerten ice frm the frame so that thy Fave no chance ef hee ee chide MIU t ncuaed trom ote the fae Coneragcen ahem ort au Sarr gan ie: orm srt em tae a le dn Siede.gsume tha perwos wha dn tot respi to suneea en ae eee then compated tthe nial responses nacre ae a PMP te ev "tnabe val inact he Sampling Evo When consurting «probity eamptee lnividuas oes ln wil on be hed Ine eon aoe a trom sample wstanple booed he is neppers.ot on he igor theta coud Nee ee enteric yee nt imal i acy sear oe ya he sary al an he i cal conserations arse wth espa tthe Coseape tn cet in selon ban nd ces 1 Individuals are pnponey erated tae {Be fare w at he survey teva ae mote tole the tane7 a Poo [Nonsesponae ertr can et nonenponas ban aed becrtes on oon eee etgoracr rma dear Sevan etapa pon eb the tndings are parpaly presente! ations relent crnpivnoe sed mare for wan nt ane unis ba i ore Sinph iy nsrvey sponser henna eating pshens tat ade os rrp ‘Tpaneulardiecon, an interviews esuph manners ponder ina parcular ecco 8» testo ol fly proc oa Information. Eines muss als aie shen Oe Yosef ren serps frend fore eurelunora avout the entite pupulaion When fo ute Fompeobaity sampling muir, you heed teen he Sa ng procedures ha ate tha te ult earn bo Rerealeed Wend th role ising vaiblen: Organising Calrgprial Vasabag + Organizing and vn arbi by categorie ‘tubes typcnlin yo cova ronmary organise the date foe» single eatgtica! Caisse Fo Conacher gutey asta orparuge te dat em tw mate ahegeeat varlble, ony a cay gaya ee sen Tears Procrnssumoary inte aveortvsarcey tha hed gpa oratory pod Vid with aden car, spd mth wee [purchre and oti tora fine pa ih cath de paid wih «daa td the aman 1 jas by rheumatic Wy oth oe Method Percentage aan one ies ie Gmqe 7 Online payee * omer * ‘Aeantngency tbe coomtablae, ote ty Hi os toa pater tat peal vara, allowing en encase neh perce ihe overall wah poscentage of the row Wal ow perentage of eat, {asl depeningentherype nt contngency ley se ach appear et ‘rental and heveinacl foreach reponse sure cambio of any orthe variables lng tale, In the aurplet cntngeny Wl ane tat conan fly ts cateorial tarlabie, the ln esponaen ape In nay ei between teB.A. ons) Beano Semester I) (CHES) fe to [ene [a [a an visualisation and Representation Ts a race arabs naling cago eS cas Omonting Mime vr ERNST sane ne Sa yeu Tew you wo MBN stance pwerccseardan fF Malet des ong rags ow a) otvamioemanges ferns 7° NNR ow gone to pte Lf ial echsivean ivan edt ceva Eahvaiuccan eee FShoo il gn anata catnip SEAT liebe Sane ete rn Distribution andthe Pecenane Distt sh aa ea a a open an antenna (cet a eee oie - The Cumulative Distribution : The eumulat a erate eis ts ses ersten construct 3 cimulaive percentage datibaion, 8 UatPutHon a8 the basis to 00 ‘oped a Rone, you use dey 3d wea oth errs eter eae ent ot hen sopra by apace cae 2B Tenn ihe Dought Chart; A pc char and 9 uso sat oe ar ar ree the ac of ach HERO OO oth ea 9 orev second oe eres ae, Te ot Sapa sae, you uly eT Wiest hry ene HO any ae ater a these of te hs eh foun Ina oa dour, No, conse Sa | cere ee mc yest ctr choc. Most woul agree tal shout wh of on tages promi an overt vl Pere pe Bye shat ee here you need to api lips chest OE eentnauld ue Sought chart ‘sed vo wisualt re Doughnat cart a 80 Be Fae patina Pareto char the alis foreach ateany ae plod eae cathe onder, ccordng othe equcies and are coma erent ndescen ee o erame chr Preto carts gt et seth cumulative pret gusreation hatin many dataset fw cates fe he ae ec rcpene ene arty of he dats ale many of gor a ey ama or ivi mount of he dats Pareto a frapyes i eategoies fom the “eval OA ety eee can lun tempat ctor. Pre chats magia Yo sng inpeovemens forts sucha when dat a8 ls FEV defecive or nonconforming tems. E seer rant pretnts he bar vertically along with a cumulative pero Tine ee ine fe plated atthe midpotnt ofeach category, at aM ° serie of or cet te ues ort | i fge a ungie exer 1 8 ‘seccnage of val ‘Sealy identify the “vialigh) ofthe Xan Figure you sec ha substatalpordon af ne cae wndihevne sett ‘more of hae famistave ow nak han OO a Hk eae SEOUL athe hen vnulizing two vas the doug at 3 88 ‘Sid aie bar cha tind 9 ate Anata u Bevan cnt nd ype sagan (ona te uta one Wd et mg eon al Variables: You visualize the data for a numeral wy of techniques that ahowe the darbuion of Soe ‘These tchnigs incu the nerand leat dpay te negra he ae polygon and camulativeperenage polygon ogveh a welnevopocehe the seman data by resenting the datas one oF more fow-wie stems Wat epreents sence of “ales: In turn each som has ene or mare lentes hat ranch eet eae ot {hei stem an eprenent te values ourd inthe sem Foren wath een ones the leaves are arranged i ascending eds Siemans ie aupoegatny Youto see how the daca ae sstbutes ard where concentrations Soe tees Leaves typically present thelist sigticadigt ofeach valu but seretes you round value The Ristogram : A histogram visualizes dats a8 3 vertical bat chat a whlch ‘uebat represents a class interval fom iequency or perentge dnooon fy auger yu diy the nian sara ang tne heel susan {se the vertical (0) Sus to epresent ether the fejuency ot the pecenes at {alues per clas Interval. There ave never any gape between adatom bac i iEconomie reser nes tons) EeonomistSemeser ID (CHCS) Frenaey a8 dina ofa numerator Inert to represent ¢ respective cls percentages gs points on ine, onstruct vw at more Rita» percentage eles Haidpoins at thr iret comparison that seater interpret tie nto heen Instograms intone chart os bes rom thetwn oupa wealovctag eed eben ison rhe two groups went over and nbs Porconing Ply for an Cos Corto Cy a a ‘The Cumulative Percentage Polygon logive) __polyon. or oive ues the Cumulative pereemtage dnwbanon Soaks Emulotive percentages alone ani Uninet rolypon even tonindary of the case interes ical arible ae pone eee Interval forthe numeral wsrabe te plotted, at ee 7 85 respective class percentages a8 pints on alin lang the X al bs sore EB oon vase coun 20h 4000 190% 6209 TOED EPO 9799 Visualizing Two Numerical Varlables “The getty Pot: A seater plot explores the pole relationship beter ne eter rok ploning the vaca of one numeral variable on Far areas vtuer fs rcond numerical varableanthe vert arr tor cuample a mathering analyst could xudy the elfecvenest of 21 deny Uy comparing adversing expenses and sales revenue of 50 sot 87 cae ng Oc fepresent advetiingexpese and the Vans to represent “Tumeseres Pot: A tinesere plas the ales of meri variable on Fonte et a Tend sucited with each mumertl value on theX dae ren ae orca help you vinualie tends nat that occur over i ‘Senenting aed Vnualleng a Mx of Variables: The methods can alcove pon eet po yaaa tat simple bles and charts would ae lig sch patter tse methods endo produce at rae aa fe meted diced previ, o conade ese New re unpimentl wand not replacements forte cer eto lt dimensional Contingeny Table: A mutimesional contingency te namie ur more atepoil weabesInExce you implement ae ea ete Pvc tbls surmarne et of variables 9 all 8 saat Penang the min of variables and he level of summarization and 6 Interact as ble Wen you use he categorical variables, each el | feoaning ot ust lcs sn tir vale, ganized by We abou set a ir eos te fo ard Sitio. u nding a Numerel Variable to a Multidimensional Contingency Table 2 wnt a Baumert vais fo malaimenstenal contingency USE /Okanecs fromm euplay of counts or percentage af the varlous group Sa paneer measur ofthe mame varia for a group TYPE Jeune ofthe mimereal deserve sathu Deepa B.A. (Hons) Economie Semeste I) (CBCS) Dl Done: Pats that you elew when exploring matiipaaiea connor bes may ease yoo er sues Seek eae Tee sree yet damage eae “ndrvng tain anc mosh Yescannen cheers bee ee sly aa wal mths dna ion Sea ee cl lees: Many nowerbusness nays mthods et wih man sea apd aloe you" ou dit eo sre om geri aor nme npn ac Soe ae err epcon ieee eg nf a aos {pres trcpd vr rc: Ca see an rp se shige sale fhe variate hat curd hc uae ogee ee ae Stole a hasten tec wis ese soe ee aay {Sotyou hae physcaly nied no such ule Te lon? you tweak eat Fuliimensonalconngeny abe a Wonks Bed 2 ene me hn 2 pla lan pvt allows youtofer yur aby experi specie combination of eoga sue ws ur al Soe a ee Ts thanthe bar uses youcanuces Poca paket es legos roma hatte oss osay harmed oneeatee Meee Sputlne | Spine se compu teesercyvosseeice a ee canals empaths wes ste ca ek Sonido Ml pres arg he cet aan eee ieee paw ee Rd peo hapless ae Flos Aino splay sea pve! base ee Ec sl lc tas nha pcs oe ed he Change In Grusng and Ving Vb: he bar and stun sume at ou este ten you signe ices arabe Fite cnn mp he sagas Sf anaes owen yer ee Sn your das nwye tates he ene end Tea Iroc Sut esac be sere Sis impos tat would ad i eng ot npeea ee chien oping aa azn obit ostud he compeie (Otacuring Oats Naragement speci have ong kook ae ovo seg ay St ce dan een Pate OSS arn sls ne ten pe mut eet 1 re as open hate te Chor sbiinedan nese and aneeeey Date Analysis 1s “A seins spam promt of ry pa fy a at [ng peti of tine are summaraed ae percentage changes fora shore: period ‘Chart Junk :Sechng to construct» visualization that ean moe elfctively conse a instant pit some peop nad decors hen neo SSpinceane site br En inesrapeso he visustzaonsdscssed ths chapter ‘While adiious use of ach coms aya inthe memorably of chart ont ‘ton such elements ether obscure the dat worse, creates fale impression of the data, Such elements are called char junk Highest Value — Lowest Value interval Wdthnese » HERBEHE Value — tev Relative Frquency propertion ‘Number of Value in each class Toul umber of values CComputingthe Proportion Relative Frequency = sane aie : mefnetate, cae ee inidals one or two valies and then averaging To paraphrase the mean involves cc ena tne gd nag scene i att ae a Set Se me sharon dzone tne tmeeeee pete cortmstarmatenme et ces eae steenss ase anceran rete, SESS at Geetnoc tact ye meen sant dinevae aise Risch sue timetsoacen Saeeeateaian tt ap the mea) isthe ost ee1 16 Deepa A (Hons) Economies (Semester Il) (CBCS) Using the series X, XX, forepresent the setofmvalues and no Fepreset rnumbor of eae the simple, te equation Bacomes yobttes Sample Means The sample maa she sum of heals in npn by the number of values in the sample 7 Median where Be U1 RYX ORNs XG 4 Ry Mined Bate of turin tine period ‘alton and shape! nadion ta etal teeny: esery vase canbe charactereet by ts variation and shape. Variation mesauses he eeeee “persion ofthevalucn Onenimplommneedtvariionteternst we ihe Ta he Target snd wallet values: More commonly used in statics ae the Nevition and SP eintned tater in thls section. ara beviten ble reprser »paterm ofall ve values, fom the west a soe As you wil ear ner ths nection, many variables have pattem? Meee uphvoudatl likes bell witha peak of values somewhere inthe middle The Range ; The rengelsthediference between the largest and smallest ale ‘and I the atopest eavrpive measure of variation fora numerical varable, Page Karp Xaatee “The Varanceand the Standard Devidton Being simple measure of variation, the tinge dows not consider how the values distribute or cluster between the ive Two commonly used mestures of variation that account for Row al tbe SST te tswituned ave the variance and the standard deviation. These statistics Tabti2o ie average” seater around the mean —how larger values fluctuate “Shove t and how smalier vals fueruae below it. A simple measure of variation found ihe ean might take the eiference berwaen each value andthe mean and. on um these Siferencen However if you did that you would find that these [fences sum to sero because te mean ithe balance point fr every numerical inabies A mensureof variation tut difers from one data st to nother squares the uilference between each value and the mean and then sums these squared Liftercnces The sum of these squaceddiferenes, knovwn as he surf squares), Isthen sed fo compute the simple variance S,and the sample standard deviation ©. 7 “The sample variance (6) is the sum of squares divided by the sample size ‘minus te sample standard deviation 6s the square root of the sample variance, Because the sum of squares can never be negative value, the variance and the andar deviation il aways bea non-negative value and in virally all ease, thevarinne and standard deviation wil be greater than 260 Sample Variance “The Coeticent of Variation: The cofficent of variation sequal tothe standard deviation dvidedby the mean, mutiplledby 100% Unlike the menses of variation presented previously, the coedicent of variation (CV) measures the seater inthe {ata relative to the mean. The coelfclent of variation le relative messure ol ‘aviation that i always expressed au 9 percentage rather than in terme of {is of te partial daa Aer : Ae o-(GDeepast A Vfons) Economia Semester) (CHC) Whew 5=Sample standard deviation Scores: The Z score ofa value re ieee between tat eet Nedby We standard deviation AZ score of Dinah he sau ‘am 3 Z score isa positive of negative nurber, inlets _phether the vate fe above or below the mean and by how may sandand Zacoresbepi ip idem outliers, the values that secem excessively i ‘othe rst ofthe vale Uauos at ae nay dfennt no he oes ‘Sther very sal nepative) 2 scores or very lage fpntve) 2 sores Asa general ‘ula Zavre thatistess han 3.9 or ener han £30 indicts sonic ee Shape: Skewness:Showness meats th exten fo wh vate ae not Srmmetil around te mes Tre tes foses se Mean median negative or tsheweddstbuton Mean median: syne cttion er shew) Mean + mean: one, or ihtakewedasrbuon tna symmeialdsrbton the values blow the mea ate bed gactvtnime nay ste valoe sneer men snd ideas sein Sire Sion thre tan ital ods ates ee tase ipezn andthe skewness na nomscto she (les han Zee frst distribution, greater than zero for a right-shewed distribution) ken “\ JN. [™ + Panel A displaysa et skewed distribution i ana wanna setae | a tre a oc ce ee Sites deem pi cna arte _ Spallyitibuted inthe upperand lower poriona of te bution Tiseqeaty ie he ponion atthe Carve blow he meant be the mor image owe Fitieg otis he mea anaes the mens eo i Fan eS a eden ee Te ie ean Sane a ese hi So eas daha ea Analyse » il be greater han feo, some use the ler Fouive shaw fo decibe is spe Kt oa mena he peed of he cre ol he bee, care rol ean etn etels Sinbelon hatha» sharper-omig cee peat han the peas ofa norma Aisebution ns poruve harens a harsna value hats rete than zo, a fated Iepsbrte dstrbuion that fas a lowering tr cenze peak than the peal of a normal istibuon has negative huront a Ruroisvale at 8 iene and ied paphar A peare tb a 2 ‘Sinwiouion wile playbarac dutsnauon has lower concenanon compared Eploring Numeral Data; You can liovinulzethe stbutionof he valet lta varie coming beguarucand eter ay Ghd construing» boxplot Quarles: Quarles spit th values nt four equal pars—she ft quale (9, cides the sulle 224% of the value fom the other 78.0% that ace ae Saeeeey Guanes the median 20.8 ofthe values ee smaller tan eal ihc maish and eo bese anger than or equal tthe meclan Toth are 13 ides tne snlet 750% of he values fom thelarget 25.0%, lent Quail, Q, +25 0% of th value resale than or ual ©Q, thei quariles snd 75 Oe abe lange than or equal to We st quate. Gy- Bel vate Thin Quan O,: 75.0% of evar ar salle hao equate ie quant Goud SSE eter tan orega tote edge ye S822 etn ate utente Quast eof nk et aoe en ames ten te ta a ae a ae eae ae a mt sind ot Be Hyd aa ese iets olson 45 teu tate ene a een ee Sac epee See gc iy aera wate aes Caer ee Ga tatadeaoe ea tcnete crane rrs tonal 70 aa Beene2 Doon Sattothe 0th 4-2 Saree Rounds te Sangeeta The Interguarile Range: The inter quarto. aril range (aso called the midepread) i center of distbutan bese the third a fst Interguartite Range : The interquartile range isthe ference between the third quate and the fst qi Imerguartie range =, =Q, cI nearing mares the pode mile fhe vale mes togeteay ns morning oo son compute esate rage ae 0,-8and,-at Interquatte range = #4 ~35 = mites “Therefore the interquartile ange i the time to got ready #9 nutes, The ‘The Five-Number Summary The five number sumnmary fora variableconsits lof the smaleat vale Pere). he guarie, the median heed quale ad he Regest eae gy) Tie jumnber Summary Xena MESA, Ny “The boxptot : The bouplot Snes five-number sumay to vaualize the shape cof toe Sinibutlon fora variable: Figure contains Boepot fr the sample of 10 Time crn) “the vertical line drawn within the bow represents the mada The verlat line Wtseieindeot te bo represents we leation of Q, an he vertical ine at pe te ae ofthe how roprenets he lation of Qy Ta, the box contains he iis thas Tower of teddy aie comeing ferme daa prt iy sce ie HER bx SesstsaneesSenteeee etes eneeenecsceneeestcsteneeeseaanaes Araya “Te gare twp for the ging rend times shows Te ree ened gn aoe PY as a {Totance benwce the lowest vow and the median, and the ight tail 1 3 inner al ‘uteri Descriptive Measures for a Population The oputavion Mean ste population mean 1s the sum of values fo population vided byte popuiston size ATs parameter, presented Eh omen eter mos serves ara measure af ental endency ‘Tne Populotlon Vavance and Standard Devlallon ‘The population vai and the papulation standard deviation porameters measure variation i papain The populanon sarance s the sum ofthe squared diftence za Frresnition mean distded bythe ppulton eX, ante population stan Bofelin inane mqare rota te popalause variance In prate, yu will a Iifey ine the population standard deviaon because, unhe the popula aoe ar ws cindard cevitom wil vaya De amare expressed In thew “illus te orginal poputon data. The oercase Gree eter sh, rept wee tiicmtandard devation and vigma square. 5 representsthe popu 9 RES empirical Rule In mort dataset large portion ofthe values ta cust Souther near he mean. npreakewed dra sem this lune tothcicvol iernean atts a vale fetanthemean ndeeakewed da retarted woclaster to height of te mean tat, gests than the te vas Guances wheres median and mean are sre, te values (eaertiuner wound the median and mean producing 3 eibshsped ra Aisbution. em cal rule sates that for population data from asymmetric a shaped diiunion such asthe normal distbuton the following are te ree mately 6S of the valve are within 2 standard from the mea, Er ae SS of he vals ar within +2 standard deviations fen sean pronimately 997% ofthe values ae within # 3 standard deviation tbemenn, Tear pirical ale helps you examine variability in a population 2 we dently utes, The email rule implies that in'a normal dition Stour Sat ef 3 value wl be Beyond? standard deviations trom the me wR hun ana general ul you can conser values not found in he sunsets Phe vale la tmplis that ob about in 1,000 ll bebe SLEQNIReE Zeiations tvom tne mean. Therefore values not fund inthe ME So tratmest always considered outers. GepShees Theorem For besvly skewed sts of data and datasets not sreedtts be normally eintbuted, you should use Chebyshev's thea TeLaEP Ste empirical tte: Chebyse’s theorem states that for any da rreiconef shape he percentage of values ot ae formed within dstanct ‘Mindard deviation from the mean ust be atleast (-3}om :2 Deepa: tA. (Hone) Economic (Semester) (CBCS) |v Svietht le ran ao of resis an. For ear ce ama te tate te 1) 10% ol eae ms spectator ey ee nd apis o ay abtion The from themean However thedatssetisapprosimatey bellahaped themed ule wl more aecuraey ele te pester concetation of ats hose fo te The Covariance and he Cocfficent of Coreation The Covance sumer and Zou-¥0y-% cov .y}2 “The coelisient of Corration : The collin of ons ‘aluesof the coelifentof correlation sange fom] for pertect negative core tot fora perfect pote corelaton Peseta ec nee a th sere pote on mace plat al he pnt could We connected wih night "When dealing with popution dats fortwo numerical wails, the Geek eign Nacoon oo) * Contettion alone cant prove tha the a causation elective tat that anc hangein the value ane arse used the change in the oer eee wrong coveaton can produce by chances by the ett Oa arhing vatabics fi arate ot considered inthe elcloon ofthe carealon: of By ace, sndeteatonsp. You would need perform alton aniyaste gerne hich ofthese tee nituatin actualy produced the correlation, Thelen Zar say tat cation imple corto, Bu cotelaton sane dec nora ata Anal igure on presents seater Pots alongwith ther eespective sample coolicent of fonelation for sl data act each of which cans 100% and vals In panel A, the coefficient of coreaton, 7 In 09 yo cam ace that for small satue of thls isa very strong tendency for ¥iobelarge Likewin the vl of {end tobe palred with smal values of ¥ The data donot al fallon a teight ie.Deepa:i.A.(Hons.) Economics Semester I) (CHCS) sy azo ter X and Gant be dried as pee Te dat Wel havea covtiient of correlation equal =O andthe sal valu of Xt forbe paired witha large value of ¥- The linea lationship beneeen % ana Y ppanet hs notas strong as that pane! A Thus the linear flonan between fod isvery weakrs= 03. And tere only alight tendency forthe smal Su OFX tobe paired wit ange valee of nec Fane teh dpi dtc athe pone cote foe se smll value of Xtand to be paced wth sal valve of and are vale Nena to be associated with lage value of ¥ Panel D shows weak poste Correlation, with r= 03 panel E show stronger posite coreation, with r= 08 Panel F shows very strong positive corestion with r= 09. Statistics: Pitfalls and Ethical Inet The volume of information avaiable from online, broadest, or print media ha produced mich skeptic i he minds ‘of many about the objectivity ef data, When jou ave reading information that Shorains descriptive stanstics, you should Heep in rnd the quip often atte {S'the famous hineteenth “century Bris satesran Benjamin Diese. “The Ste three hinds of ies les damned len and sass” For example, in examining stistics, you need to compare the mean_ and section Ave fy stan or ar they very diferent? Orie oniy ive mean provided? {Thc answers to thecesuestons wil Weip yout determane wheter the data are Shosced oe symmeticl and whether shoul 1osk to see whether the standard {cssuom or iterguarierange for avery shewed sto ata has ben Included in {Hetausues provided. Wheat tis Its mporsble to determine We amount of Sanat that exist In the da hia considerations sree when you are delding what esl to inch na report Sou should document both food snd bad esuls. In addition, tn all Perteatons, you net to Teper resale a fie, ojecive and neutal maine, Freeme eehatiour occurs when you sled fal to report pertinent findings [potare detrimental to suppor ofa paricular postion plies [ONT] Simple Estimation Techniques and ‘4 ‘Test for Statistical Inference ‘Smpling Distbution: In practice, you slet a single random sample of redetmined snromthe populanen Hype oun the amples Eicoumate ne populsuon parses you could examine every possible sample {given sie tht Could ceur A sampling aistution 1 the dstouton a ie {eSutsit you tually selected al possise sample. The single result you bain Pctce must one of the results he sampling dsiibunon, ‘Sampling Distribution ofthe Mean; For several teasns the mean isthe mx widely uaed ensure of conta tendenc and the sample means often used Ciishe the population means. The singing sstsbuton ofthe mean Is Be ‘Bdtvoion ef sl posse sample means H you slet all possible sample fy penne 1 ‘The Unbiased Property ofthe Sample Mean: The Samph Seca the mean oa te foie sample ear ots even ample 8 ESSalto the population meas oA single esampieconceung population ofa STingtnnlessstanes cemosewsts te proper Esch assistant asking “pply tecame set of updater toa human resources database G ‘Sanda Eroraf the Mean: The valuccf te standard deviation ofall pose sample mean called the standard eroraf he mean expreses how the amg ‘tui dcecasesby acer eu tthe square foot of Ie sample ize ing from normally Distributed Populations: Now thatthe concept slngntiation hasbeen ntoduced na he Standard ever of the mean tr deine, what stbutionwilthe sample mean, X flow Ul youaresamplg, ipnormaliy datnbuted withmean and standard devs ‘he sample size the samping ietbution ofthe mean emesn is unbasl {Goma population thon feparass of rommally distributed, with mean 4X ~x and standard err of the mesn. Ta the sumplest cove you take snpes of size n= 1, each posible sample ea Suc trom the population. Therefore tbe population ermal Gistributed, with mean wand standerd deviation o, the sampling dstrbution for samples of n= 1 must aso follow the normal distribution with mean aX = ARIE Riined error ofthe mean. In adaition a8 the sample size Incense. he famling distribution ofthe mean sil follow a normal dstribution with «= [anu Esndanderor ofthe mean decreases a0that lt proportions of sp fan ate loser to he population mean ’ “Sampling rom Nor-normally Distibuted Fopulatlons~ The Central Li “Tne eS any analaen you wil ether be able to krow thatthe popula 3) : ate(Semester) (CBCS) “entra Liit Theorem, dete with hewn ere ,The Cente Limit Theorem Ast ‘dividual values in the population Pat sample size store enopush? Ata genera ul, tatsclns have ound “2G many poration doo, whe the samp ae an PPh the Cental Limit Theorem for each smatog arene ‘stnbution i appronimaely bell-shaped tn necaee ghia ee crcl importance Inusing ssa intronce tape of th popu The Cental Limit Monemy of Normality and the Sampling Distibutlonof the mean: For moet distribution garde of shape ofthe population the sampling diaeiettnt er ae ;provimately normally disibted i samples i at east nse Nae see tne tribution a the population fel yet the sampling dation the mean Is approwimately normal for apes ses 1 the population is normally distiuted, she sampling dstibution ofthe ‘sampling Distbution ofthe toporton «Consider a categorical variable frien propor pa ate the sample propa, yo "partion p will be Between and Y Wa Sharan you av halantovelandasnge See haan Eygeaualo 0 froncot he tem have he canara Jot sige a, Confidence Interval Estimate forthe Mean (a Known) Camp ‘ luction proces that operates induc rwstonottneiengs hess ease rune wheter the ean paper enh iia in ching has pone wrong tne production {etshet and remesn paper nfl iene Seat ene ae t Interval estimate fr the population mean popes aie “ Solution with Z,,~ 196 for 9% cntidence, ul equal tot inches or eer #2 Se = 10908 196) : Thus, wth 5% contidence, you cnet thatthe population mean i between 3a9941 and 11.0019 inches. Becnune te Interval include i the wales ies {hat the easton proce working propery You have no faton to elnd Con You ver Know the Population Standand Devatlon? I eviton To know simple that you values nthe rite plain Ve ele woul you hw te ale this pputation parameter) yo nee atthe vues icone feline you cout ery compat te popttny mean There woul he nhc lente awning ner satis seroma the poplton men Note slate you srl eve ha sigtcanty tn viral alate tt {he aan deviation of the yin a {oortargewrenamins al ets ‘oncept of ontdence interval cause Wee the norm itn.2 Deepa: (ond) Eeonomic Semeste (CRS) ‘Genfidence Imerval Estimate forthe Mean (o Unknown) : A mehods ol covsructingaconfserce terval erate osha uses e sample sate ‘snestiate ofthe populsnon parser © eaten t Dstinution | At she tart of she tne century, Wim 5 "ropenien the iho: Tet an rina appranee Eelthaped: ihe enn andi medn pn ae Here enue $8 ‘Therefore the estibuion ha ve ate inthe uit and fess n coe a Gos the stanardined normal ubuton negate Disreuton tr § creo enon settee bia me tert ania pt tet en oe a ace ienine shay skewed population diutbaton the contdnee era err Iayen provide valde ofthe population mean To assess the atu ata Anata 2 "Sonali, you can evaluate the shape of the smple data by convrocing = Btogramsiemand-eatcipiy boxpis or normal prosabty plot However ‘8 bly of any of hese raphe to help You evalute onmality hited heh ouhave anal supe ee ‘The Concept of Degree of Freedom ‘The numerator of the sample variance, $F requices the computation ofthe sum of equates around the sarple mea Eom In order to compute, you fest ned to know X. Therefore only n= 1 of the sample vals are eto vary This means that you havent ope of reedom. For ample suppose sample alive vales ss team of 20 How nan ralocs 42 youneed io tow before Fou can devermie the rermnde of te valet Te act that and X7=20 sls els you tt x10 fu ‘Thus whenyou know four ofthe values, he thon inet eto vary bechise {he sum must be 100, For example if fur of Une values are BBE rae Te ee ft value must be 2,0 tat te ur e100 ‘Confidence intereal Extsat forthe Proprtion “The concept of confidence interval so applies to categorical data. With ‘qiegorcal dat, you want to estate the proportion of ems x popaiion e) hers in a popuition having conaincharaeratc af interes Tee ssbeonog ‘Population proportion i represented bythe Grech etierm, The point estimate for “Eis the sample proporion p= Xin, where nis the ample size and ls tnenomiooe ‘titems inthe tmple having the character of ite {Confidence Interval Extenate forthe Fropetion p22, (SD Poh POSE ons pz, FB ci eae a0 DeepasB.A. (Hons) Economies Semester) (CBCS) = Number of ems having the chatscteistle epeme ey sampleine = population proportion Z jg extca value trom the standardized normal distribution nS aample size [Note To use this equation for the confidence interval the sample size n must, be lege enough to ensure hat Both Xan ware greste than 5 ‘Determining Sample Size: neach conlidence interval developed so farinthis chapter tesampiesia wos opore slong wiih elven SEE width ofthe resulting confutence itera. Inthe business worl sample Sherare termined peor once eo at theca ne Siztou comple poco, say ot conta area me andthe oun of eeceptablesrmping ero nthe Risk! Home Centers scenario ‘Torro cotimatihemean dol amount of the ses inelen, you mst etrmne [Banc how tages sampling ers to allow In estimating the popalitln ‘Sean aoe must alse determine imadvance the level of confidence (ues 90%, 95% 5G Inn poplin pra ‘Sample sire Determination for the Mean :To develop an equation for rceming the appeopmate sample size needed When constructing a confidence {Riera erie or the mean Retna “The amount added to or subtracted from X i equal to half the eth ofthe ers quan represents the amount of lnpreiion in the estimate that est from sampling eae Thesampingar ee defined a8 ¢= Zu Ee Solving for gives the somple sire neoded to construct the appropriate sconftaenee ner stinats forte mean, “appropriate means that he reeling ‘tral will have wn aceopable amount of stmpllng ror {Tne dested conidence eve which determines the value of Zy the etal pie eat adrian roma ration Insorne bsinero-busnee relationships tat equ tiation of importa ‘ont ten sseavssmoing rors and conidence evel ingenctal however Dats Analysis ey 2 $0 spcly the the quantiles need Yo determina the rangle size, How can you determine he level oftonfdence and samplngenet Fyre these uations are answered only by a subject mater oper eon inal very familiar with the variable under shdy) Although 99% lhe mont oan silidene eel wee, more confidences dese han 99% sight Be ore Sppropriae it ess confidences deemed sccepaves an 90% might be used For aienmpling ror. you shoul thnk ro oh mech sapling rr You wold Uke to have (you relly do not want any error) but of how uch ou can teerate ‘when reaching contusions fom the condense intend Inadidition to spectying the confidence level and the samplingettez. you need {o-stinat tie standard deviation Ustornnately ou rarely knoe hat poaaon anda vin in seme mance, you can eimat h tanded Selon int afenun the range and ini of vale for ample sues ermal distribution the range ie approximately eal fa a (rr 35 around the ‘mean so that you estimate oa the range divided By & lyousannoreatimate stn {his way you can conduct a smallscalestady and estimate the standard deviation ftom the resulting dats ‘Sample Size Determination for the Proportion : So farm ths section you have lesned how to determine the sample sie needed for estimating we population mean. Now suppose that you want to determine the sample sce ee for esimating = poplin propertion letermine the sample size needed to eximate a population proportion x you use a method similar to the metsod fora population mean. eel that Energetic sample nora conten tena otha sampling eer tae when estimating a proportion you replace & with JET =H), thus the sampling err ie iN og hae he sample ae nacnary 0 develop» confidence “To determine the sample ie, you must Kove three quantities, {The desired conildence level, which determines the value of 22 the crcl value fom the standardized normal dstbution “The accepttle sampling errr (or margin of on ‘The population proportion In eatin seh on PEE ap —mm=O7.then n(n) =O? 03037 Whene=08.thens(l=m)=05 05-025, masOnihens(l-s) = 07-021 WheneeOLthen (1-7) +01 09=00%, aan eet ll gt condense Interv narower than weginaly fidence Interval Etiation and Thea sues The selection af samples antes at ny mir tht ee ar Fon ore conden rest cotmate ight mised ther Se at eating tot ihe pintentimat al tat ried Yo predict the sett rae eh cen, Coen erat pial set ao a and anintrpectaiona te mesringot We content eee ener et pecon untrained in robs can understand should 7 naamontata of hypothesi-Teting Methodology: Hypothesis testing sypiehnetnrstova heen acai oransserton soul» prose parameter ype eS ample sour al Wet he eal expe at of pera ropa anthem fils 36 gre tna ometve ston Tine sie and Anema tpn ypn a te one 7 lan A peeicesbeoel yas recenenaleanran ertcm isc esymna ee inal typos oa ie wn i nt Sram sein po rent tornmin eine oman al open ete ete filing preserve Inesence may bw Momictampedatabente that hema ype fae tthe nalliypetet [nonlded ae someting ese mtb re ‘Wherever al hype fle heal hypothe conaeved fle, Tat a i pepuation prt equa the company spclton steered to abe allots A nl hype ten one o iw iqu and ienled bythe symbole i tht the filing proces i working property. and ‘af pram specication povided by Onford Cereals, Hy: eae Even hough information avallabe only rom te sample, the mull hypotest Sted interns the poputtin parameter enue your fcusiven the population Sinlleuet Doses ose te topic ninco make lferenes about te etre fining process, Ove Inference maybe atthe resus chserved fom the sample shaft a tgptens nao geieg an ne te Witnevee a pull hypothe a pected, a alternative hypothe als pected adi ust be tue the ral hypothesis Ia fate. Fhe alternative rote i ee oprontea be nltyptnns stot ince sample Hysa0368 Intypotesis testing you eet heal bypotess when the sample evidence ssges ores far move hal hat the sorte hypoteals ir tue- However {EE to reer hel ypc sot poo ae rue: You can never prove Save liggsts arta econ dol on us Invormation nov onthe ene population. Therefore if you fl to eee he ral Fypothesa, you con only conclade tat heres insulictent evidence to warrant it obeton Te ollowing Ley ponte summarize hella siteative Mypodhests “The mil hypothe, Hy represents he caren elle a situation, ‘The alierative hypothe, Hy, i the oppaste of the nll hypetest repreceisseseatch ue or specs inerence you would keto prove Ifyou rect the rl hypothe, you have saseal prof at the altemative nypoteais weoeece ” mea ‘Deepa: B.A. (Hons) Economies (Semester) (BCS) TE you dot eject the null iypothess you have alle to prove healeratve hypothesis The fare to prove te atespaive hypothesin however, does not ‘ican that you have proven the nul hypothesis. “Toe nall Hypothesis Halvays refer toa apes value of he population parameter (auch 34m), not a sample statisti (euch a8 X) “The ststement of ll hypothe always contane an equal sgn regarding the pected ofthe popalauon parameter (ep Hy 365) “Te statement of the alterative hypotess never contains an equal sign egarding the specie value ofthe population parameser(eg- Hi s= 38) “The Cita Value ofthe est Stata: Hypothesis tering ses sample dao determine ow likey is hatte ll Nypethea iste Inthe Onford Cereal ‘Company semaras he nly ha the mean smut of ere pet box Inne nie iling process 36 rae be population parameter Pid by he SSmpany). You seis sample of bones tom he ling proces weight exch Dow tnd compute the srnple mean This sample stats san estimate of the omesporting parameter, the popaation mea, Even eral Hypothesis true the sample statistics Hy to dif from the value the parameter (he Population mean m) becouse of vation due to smi ‘Yeu do expect the sample statistic tobe clove to the population parameter it henullhypotteis str fte sample stats cose othe population parameter, ou have uf eidrce 1 het thr patents Fo amp he SSERETUT f Seay becuse» susp mean of 029 grams is very closet be Siathesked waive et 38 game Trvatvely you tinh that Ie Hkey that you could get a sample mean 3678 scams tom a population whose mean 1368. Toner therein reference between the vale of aarp sai and the hypothesized vue the population parameter, yu might conchae hat evolinppomens eae For ecample the seple, mean 320 grams you Fr conclade dar he population tesn i not 8 grams becasee the sample Blin ery fro tn phe a of 68 ams I ach ee You a onclade tat lf very unl to gta sample mean of 320 prams ifthe tation mean Is telly 208 pare, Therefore more logical to conclude that I popuiouon mean et saps ert Determining wha 9 ways Lh Reis "very aif arary wa cea deinations Hypotbesitesting 2 polo he provides ear defntone for evalating diferent Furbo, ‘esl to quan the nal ythean tee You eae spray EsQereenining tt sampling dnb forthe sample statisti of net eg the pie mea) then comping he orcs et all sant now esta isbuton sch asthe sada normal debution rr dato you cn we tee dito help determine whee he regen youresthnaltypobens Te make a deckion oncering the nl hypehes,yu ist eteine git ale of het satan Te cal ele dvs re nenrseeionseoa Semin recon region Deering bee aus Gopendscn ne ae cfc ‘iio tepon: Te sae ote retin reign dey reed to ene ‘ined Inunng only sample eicener to habe eesons Sout» pepe france oe Rik In essln Making Using Hypothesis Testing Usnghypotes tng fc ull pps Hyon converse you mgt orang et rele eae ea Eppa iy Thee pes of rake ced Type and Be ener ‘A Tye or ocus You reject the Rll pote Hy hen ve ad selec yet ores “te the poms to pel ‘Type lt eor ocus if you de not eject the rl hypothe Hy when fates vould be jee A Typ crn tepenrer a ised spp to tBke some coretve son. The prakabity spelen caer ob rbablity of Type t and Type I Err: The eel of ngencce() of 2 seas tet the psabyecommiting a ype ser “he rk she probaly of commiting» Type eve thecomplentote probaly ofa Typeeror (t=) scaled te cone coin The acne colic the posta ou wl ete all isjpowesis Hy, when ete and should not be jected Inthe Ovond Ceca ‘Etro, the fnfdene concent mesa the psa of concding tat ‘he populolion mean il 368 pram when Scly 368 oan. "Thecomplement ofthe protiiy of Typelerr (t=) alte por ance probaly ofeTypeterer (1-8) 4 The power of saa st the probability that you wil ct he null pothesis whens alse an should beFoecte. nthe Ono Caras cea, {Bz power of ett ate probbty tha you il crea cone ate ‘Me il smount pot 8 rama when scl snot 8 a Hypothesis Testing Using the Crile Value Approach: The esl vaue approh compares the vale tre computed yar ssc 9 cel vals aie he oval dibaton Io regi repion an resect eal value se eapresed ap stands 2 values hoe deterned Geleeeotsigniicanes My For xampleyouuseaevelofsgninre of 5, thereon eon. Bcc tell hypothesis contains equal sign and he sematee hypothe contain snot gua sgn you hate gal eg y ——Fa Deepa: 0. Hons) Economie Semester (CBS) Sedge vee itn wa oil gol si fhe eaten on of 8 ao oe ee case's cumulnive meso 0025 tio te ower eta value Shs cumulative ava of 09791 ~ 00 “ie. sh aes teow the upper eva ave (OA aan erat bs inineupper aid. According toe cumulative andavclee| vee tntuon heel values ht ave the econ and noteection oponsare 19pand™= 3 “TreertieatvalueapproschtoHypothsisTest9g Steps Setethe null ypethesie Hy and the allerative hypotbess Hy et ee et sion ee Se ther importance of he Ha of commitng Tp} Appell mors in he peso ae a Dercenine the appropeiate fst static an sampling iebuton S22 Ratne we iat nue that divide thereon an nonefeton reson ee Sree Collect she sample dats, ongrize the es and compute the value of he tet state = : eee ctake te natinical dein, determin wher the assumption are oe ne eater coneusan nthe context ofthe theory cal. of sali and sate Un aye est sta als iro the nonfcton region ou do erin beng na te Rats alto the efestionFION You eject the aul hype Ee “ropoinets ting sing he pate Apprsch The paste probly or nhc toormere vrei he sample el te Ge 2 en ju tue The pete also known as te baer aa Poth pve fo dtermine rejection and neneecion ear approseh to Rypaihest esting Me deion ue for jet Habe pau Peron rae eeeyelsquester than or equal toa donot reject the rl hypothe Iie ovale estan a reject the nul Bypothesi an conse thew re, mistakenly Sleight «Nigh pa it Fer et ved ths confuson By femeberng the fellow tae sie ow den Hy ut 6, “Tnepreatues Approses to Hiypottesis Testing: Seer etate te all hypothe and se ateratve hypothesis Hy 5 eS Since eel of sigan and he sample ze, n-The lve of “er tee eat ce importance of he ks omiting Type Se pei crore inte problem. . ret Suremmne nc appropriate tes stati andthe sampling isstbutlon See oe te sample data compute the val ofthe fst sas, and compute te povsive pae Araly 2 FTES HIST deci nd ae ERE re er eREEE ay in onamclning ede ers spect te er ei np rn ae seta SE Beal Sypotos ra ye ela ft enn (Unknown) In weal entre ing ne pepsttion ears, sg red eaten Tower You wil YS Fara a fecno3yo sue tO BoP Same art ng motos tne mean al lon ited ten ea Sp you anew te he POPuAHON TOS sn gad the ample ze nat t00 sal "es forthe mean (@ Unknow) cher he tye ot sai fons 4 # distin having wt ETE of ‘recon mag he Nosy Aavomption: Yous ts weet PORN SG ark tetanon, #1 not Kowa he sample sandad Sen See ety nga er ee nee deviation Tews aly doit i proce 2 RE {noma population te popalation not ey ake, et are see nl 9, Srtonntonl he sampling So ay EERE AE There ve coweral way 9 evaluat Be Vou can examine now dosely wei tuo increta! propesis. YOu on aS comm eat aplay, boxplot, or normal ‘SEEinain ote sls invee= amour Sess Some Hypotheses are oneal et cau Ney requis 1 ATi that focuses ona para dirctin, ae ot oneal pots est would test whether he population eons os than a spestiod vale ae icmatveHypothess in One Tall Tests; The null hypothesis Hy Epes test gus oe erent in tuation Seren oc yids Hy 1s the.opposie of the null hypothesis and represen a eaareh nim o spec infrence you would Uk to Pow, ell poten you have tail poof atthe aerave Inypothsi Ib comet. a cor ron te rllhypatensyouhavefalled to prove theaeratve oe Le fet Ease prone the aiteeatve ypothen, hwever. des net capes jou have proven the rl HypOR st pa