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PRE-ASSESSMENT
Direction. Read the question carefully. Encircle the letter that best completes the statement.
A 1. A researcher is interested in the eating behavior of rats and selects a group of 25
rats to be tested in a research study. The group of 25 rats is a
a. sample c. statistic
b. population d. parameter
A 2. The average score for an entire population would be an example of a _____.
a. parameter c. statistic
b. variable d. constant
D 3. Determining a person's reaction time would involve measurement on
a(n)__________ scale of measurement.
a. Nominal c. ordinal
b. Interval d. ratio
B 4. In a study evaluating the effectiveness of a new medication designed to control high
blood pressure, one sample of individuals is given the medicine and a second
sample is given an inactive placebo. Blood pressure is measured for each
individual. For this study, what is the dependent variable?
a. the medication c. the placebo
b. blood pressure d. the individuals given the medication
D 5. Which of the following is not a continuous variable?
a. time to solve a problem c. temperature
b. Height d. number of children in a family
Evaluation
Direction. Read the questions carefully. Write the letter of your answer on a whole sheet
of paper.
A. Multiple choice.
__A__1. A researcher is interested in the eating behavior of rats and selects a group of 25
rats to be tested in a research study. The group of 25 rats is a
a. Sample c. Population
b. Statistic d. Parameter
__C__2. A researcher is curious about the average IQ of registered voters in a certain
barangay. The entire group of registered voters in that barangay is an example of a
a. Sample c. Population
b. Statistic d. Parameter
__B__3. The average score for an entire population would be an example of a
__________.
a. Constant c. statistic
b. Parameter d. variable
_C___4. Using letter grades (A, B, C, D, and E) to classify student performance on an
exam is an example of what level of measurement
a. Interval c. ordinal
b. Nominal d. ratio
_D___5. Determining a person's reaction time would involve measurement on
a(n)__________ scale of measurement.
a. Interval c. ordinal
b. Nominal d. ratio
__B__6. A researcher observed that preschool children playing in a red room showed
more aggression than children playing in a blue room. For this study, what is the
independent variable?
a. amount of aggression c. preschool children
b. color of the room d. the children's play
__C__7. In a study evaluating the effectiveness of a new medication designed to control
high blood pressure, one sample of individuals is given the medicine and a second
sample is given an inactive placebo. Blood pressure is measured for each
individual. For this study, what is the dependent variable?
a. the medication c. blood pressure
b. the placebo d. the individuals given the medication
__D__8. Which of the following is not a continuous variable?
a. time to solve a problem c. height
b. temperature d.. number of children in a family
__A__9. A variable that has an infinite number of possible values between any two specific
measurements is called a(n) __________ variable.
a. continuous c. independent
b. dependent d. discrete
__D__10. A variable that consists of indivisible categories with no other scores existing
between neighboring categories is called a(n) __________ variable.
a. continuous c. independent
b. dependent d. discrete
The collection of data is a process of collecting information from all the relevant
sources to find answers to the research problem, test the hypothesis and evaluate the
outcomes. Data can be collected from two sources.
Sources of data
1. Primary sources- are those which arise from the original investigation. These
are usually official or personal records, eyewitness accounts, photographs or
illustrations, physical remains, and mechanical records.
Quartiles
Quartiles refer to the scores that divide the set of data into four equal parts. There is
three quartile, namely:
a. First Quartile or Q which divides the set of data into a lower ¼ and an upper ¾:
1
b. Second Quartile or Q which divides the set of data into two equal parts and
2
Shape. It is the pattern of the distribution of data throughout the entire range of all the
values.
SKEWNESS – measures the lack of symmetry in the data.
1. Symmetrical = occurs when low and high values balance each other out, mean =
median, and Skewness = 0
2. Left-Skewed = occurs when the mean is less than the median and Skewness < 0.
3. Right-Skewed = occurs when the mean is greater than the median and
Skewness > 0.
You should now be ready to use the Data Analysis ToolPak from the data tab in the
analysis group.
The following are the steps in computing for the descriptive measures of a set of data
using the analysis tool pak in excel (By Stephen L. Nelson, E. C. Nelson)
1. Click the Data tab’s Data Analysis command button and then highlight the
Descriptive Statistics entry and then click OK. (see figure below).
2. Excel now displays the Descriptive Statistics dialog box as shown in the next
figure. In the Input section of the Descriptive Statistics dialog box, identify the
data that you want to describe.
3. To identify the data that you want to describe statistically: Click the Input Range
text box and then enter the worksheet range reference for the data.
To make it easier to see or select the worksheet range, click the worksheet button
at the right end of the Input Range text box. When Excel hides the Descriptive
Statistics dialog box, select the range that you want by dragging the mouse. Then
click the worksheet button again to redisplay the Descriptive Statistics dialog box.
4. To identify whether the data is arranged in columns or rows: Select either the
Columns or the Rows radio button. To indicate whether the first row holds labels
that describe the data: Select the Labels in First Row check box.
5. In the Output Options area of the Descriptive Statistics dialog box, describe where
and how Excel should produce the statistics. To indicate where the descriptive
statistics that Excel calculates should be placed: Choose from the three radio
buttons here — Output Range, New Worksheet Ply, and New Workbook.
Typically, you place the statistics onto a new worksheet in the existing workbook.
To do this, simply select the New Worksheet Ply radio button.
6. To identify what statistical measures you want calculated: Use the Output Options
check boxes. Select the Summary Statistics check box to tell Excel to calculate
statistical measures such as mean, mode, and standard deviation.
7. Select the Confidence Level for Mean check box to specify that you want a
confidence level calculated for the sample mean.
Note: If you calculate a confidence level for the sample mean, you need to enter the
confidence level percentage into the text box provided. Use the Kth Largest and
Kth Smallest check boxes to indicate you want to find the largest or smallest value
in the data set.
8. After you describe where the data is and how the statistics should be
calculated, click OK and the summary of descriptive measures will appear.
Statistic Description
Standard Error Shows the standard error of the data set (a measure of the difference
between the predicted value and the actual value).
Median Shows the middle value in the data set (the value that separates the largest
half of the values from the smallest half of the values).
Standard Deviation Shows the sample standard deviation measure for the data set.
Sample Variance Shows the sample variance for the data set (the squared standard deviation).
Range Shows the difference between the largest and smallest values in the data set.
Sum Adds all the values in the data set together to calculate the sum.
Confidence Level(X) Shows the confidence level at a given percentage for the data set values.
Percentage
Outcome: {3}
Example 2. The investment firm of Loosit and Lye employs 20 investment
analysts. Every morning each analyst is assigned up to five stocks to evaluate.
The assignments made this morning were
Outcome (X )j Frequency of (X )
j
Table 3
Probability Distribution of the Number
of Stocks Assigned
X P(x)
1 0.20
2 0.10
3 0.15
4 0.25
5 0.30
Additional example::
Using the data in example 2 in probability distribution, determine the expected value
and variance of this data and interpret the results.
Solution:
µ = Ʃ[X P(X )]
j j
= 2.23
Interpretation:
The brokers are assigned an average of 3.35 stocks to evaluate and analyze.
The variance of 2.23 carries the usual interpretation.
Covariance measures the strength of the linear relationship between two discrete
random variables X and Y.
A positive value of covariance indicates a positive relationship while a negative value
indicates a negative or inverse relationship. The formula is shown below:
Example:
Solution:
Discrete Probability Distributions M6
Binomial distribution
Binomial probability distribution is considered as one of the most useful
mathematical models applied in solving business problems. This is usually used
when the discrete random variable being studied is the number of successes in a
sample of n trials. The following are the four important properties of a binomial
distribution:
Poisson Distribution
The Poisson is a discrete probability distribution named after a French mathematician
Siméon-Denis Poisson (1781 - 1840). This is usually used when one wants to measure
the probability of the number of events occurring within fixed space or time interval.The
occurrence of individual outcomes are assumed to be independent of each other. Some
of the random variables that make use of Poisson distribution are number of road
accidents per year at different locations in a country, number of children in different
families, number of persons visiting a given website across different days, and number
of cars stolen in the city each month.
Hypergeometric Distribution
Hypergeometric distribution is attributed to Leonhard Euler, a famous
Mathematician born in Basel, Switzerland.
If a sample is selected without replacement from a known population and contains a
relatively large proportion of the population, such that the probability of a success is
measurably altered from one selection to the next, the hypergeometric distribution
should be used. (Webster,1995)
The figure below compares the three types of discrete probability, It shows how
discrete probability distribution differ from Poisson probability distribution and from
hypergeometric probability distribution.
Black, K. (2016). Business Statistics for Contemporary Decision Making. John Wiley & Sons.
Below is the formula used to solve problems involving binomial distribution. Take note
that the use of this formula is applicable to problems that satisfy the following
assumptions: 1 there must be only two possible outcomes (success or failure), 2 the
st nd
probability of success remains constant, and 3 the probability of success in one trial is
rd
where: n = number of trials/observations
p = probability of success
1 - p = probability of failure
x = number of successes in the sample (x = 0, 1, 2, …, n)
In addition to the probability, sometimes we are ask to compute for the mean and
standard deviation. Below are the formulas in binomial probability distribution:
Mean number of successes:
Standard Deviation:
Illustrative Examples:
1. Suppose that 80% of adults with allergies report symptomatic relief with a
specific medication. If the medication is given to 10 new patients with allergies,
A) what is the probability that it is effective in exactly seven? B) What is the
probability that none report relief? C) What is the mean and standard
deviation?
Solution:
First, let us check if the three assumptions are satisfied:
1. Outcome: Relief from symptoms (yes or no), and here we will call a reported
relief from symptoms a 'success.'
2. The probability of success for each person is 0.8.
3. The final assumption is that the trials are independent, and it is reasonable to
assume that this is true.
Identifying the given data, n = 10; p = 0.80; 1 -p = 0.20; x = 7
Hence the probability of 7 successes is:
= 0.2013
A. what is the probability that none report relief? We can again use the binomial
distribution model with n=10, x=0 and p=0.80.
= 0.00
=BINOMDIST(x,n,p,FALSE)
1. The likelihood that a patient with a heart attack dies of the attack is
0.04 (i.e., 4 of 100 die of the attack). Suppose we have 5 patients who
suffer a heart attack, a) what is the probability that all will survive? b)
what is the probability that no more than 1 person dies of the heart attack?
c) what is the probability that 2 or more of 5 die from the attack? d) what
is the mean and standard deviation?
Solution:
a. n = 5
p = 0.04 since the success here is the fatal attack
x = 0 none are fatal
= .8154
Interpretation: There is an 81.54% probability that all patients will survive the
attack when the probability that any one dies is 4%.
= 0.1697
P(no more than 1 'success') = P(0 successes) + P(1 success)
= 0.8154 + 0.1697 = 0.9851.
The probability that no more than 1 of 5 die from the attack is 98.51%.
There is a 1.49% probability that 2 or more of 5 will die from the attack.