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Meaning Discrete variable refers to the variable Continuous variable alludes to a variable which
that assumes a finite number of assumes infinite number of different values.
isolated values.
Assumes Distinct or separate values. Any value between the two values.
Evaluate the cumulative distribution function(CDF): The cumulative distribution function is used to describe the
probability distribution of random variables. It can be used to describe the probability for a discrete, continuous or
mixed variable. It is obtained by summing up the probability density function and getting the cumulative probability for
a random variable.
—>CDF of random variable X is defined as FX(x) = P(X ≤ x), for all x ∈ R. Note that the subscript X indicates that
this is the CDF of the random variable X.
—>Note that the CDF gives us P(X≤x). To find P(X<x), for a discrete random variable, we can simply write
P(X<x)=P(X≤x)−P(X=x)=FX(x)−PX(x). Let X be a discrete random variable with range RX={1,2,3,...}.
(b)
2. (a)Question : Let X be a random variable, and P(X=x) is the PMF given by,
X 0 1 2 3 4 5 6 7
—> Definition Of T-Test: A T-test is a parametric test applied to identify how the average of two data sets differs
when variance is not given. When the sample size is small, and the population standard
deviation is unknown, the T-test is used in conjunction with the t-distribution. The
degree of freedom significantly impacts the shape of a t-distribution. The number of
independent observations in a given set of observations is the degree of freedom.
The assumptions taken for the T-Test: ★All the data points are independent. ★The
sample size is very small. ★The sample size should be taken and recorded accurately .
★Xbar is the sample mean ★s is the sample standard deviation ★n is the sample size ★μ is the population mean
Example: A store wants to improve its sales. The previous sales data shows that the average sale of 30 salesmen
was $40 per sale. After some training, the current data showed an average sale of $60 per transaction. If the
standard deviation given is $20, find the t-value. Did training improve the sales?
Solution: ★Xbar = 60 ★s = 20 ★n = 30 ★μ = 40
Substituting the values in the formula, you will get t-value = 5.47. For the alpha value of 0.05, the critical value is
1.711. Here 5.47 > 1.711, we can reject the null hypothesis and conclude that training did affect sales.
Comparison Table Between Z-Test Vs T-Test
(b)What is hypothesis testing?
Hypothesis testing is a form of statistical inference that uses data from a sample to draw conclusions about a
population parameter or a population probability distribution. First, a tentative assumption is made about the
parameter or distribution.
Alternative Hypothesis
Null Hypothesis
Generally, researchers and scientists try to reject or Generally, researchers and scientists try to accept or
disprove the null hypothesis. approve the null hypothesis
Here the testing process is implicit and indirect. Here the testing process is explicit and direct.
In this hypothesis, the p-value is smaller than the In this hypothesis, the p-value is greater than the
significance level. significance level.