Business Statistics Exam 1 Preparation

1. Population vs Sample: meaning Statistics vs Parameters

Measure parameters Measure Statistics
Mean μ Sample mean μ
Proportion p Sample proportion ^p
Standard deviation σ Sample standard deviation s

2. Data Selection
Methods

Advantages
Experiments Provide controls, replanned
objectives
Telephone Surveys Timely, relatively
inexpensive
Written Surveys Inexpensive, can expand
length, can use open-end
questions
Direct observation, Expands analysis
personal interview opportunities, no
respondent bias
Disadvantages
Costly, time-consuming,
requires planning
Poor reputation, limited
scope and length
Low response rate
Requires exceptional clarity
Potential observer bias
Costly

Bias possible
Non-response
Selection Wrong time/target chosen
Interviewer Voice, tones, judgement …
Observer Observer bias any expectations, beliefs, or
personal preferences of a researcher that
unintentionally influence his or her
recording
Poorly worded questionnaires/leading
questions

Statistical sampling is drawing a set of observations randomly from a population

distribution

Methods of randomization
Nonstatistical sampling
Convenience sampling
Statistical sampling
Simple random sample Possible sample have equal chance of
being selected
Stratified random sample The population is divided into subgroups
called strata -> population values of
interest within each stratum are as much
alike as possible
Cluster sampling The population is divided into mini-
populations

Systematic Random Sampling
Overcomes the geographical spread
problem
Each cluster has the same characteristics as
the population as a whole
Selects every Kth items in the population
after a randomly selected starting point
between 1 and K

Data types
 Quantitative
 Categorical (Qualitative)

Hierarchy of data types

Nominal data Are names or codes for categories
Ordinal data (Rank data) Can be ranked but cannot be measured on
a scale
Interval data Can be measured on a scale but have no
true zero
Ratio data Can be measured on a scale and have a
true zero

 Continuous
 Discrete

Organization and Graphing of Quantitative data

Frequency 1. Find bin from interval
2. Bôi đen khoảng định nhập frequency,
(data array, bin(nhớ bôi đen bin))
3. Giữ shift control return (mac)/
(control shift enter for microsoft)
Relative Frequency That frequency/ Sum of Frequency
Cumulative Frequency Tổng cộng dần của Frequency
Cumulative Relative Frequency Tổng cộng dần của Relative Frequency

Làm tròn 3 số

Outliers:
Q1
Q3
IQR=Q3-Q1
Fences: IQR*1.5
Upper fence= fence+Q3
Lower fence= Q1-fence
 Outside upper and lower fence is outlier
65th percentile = count of values*65%

Measure of Central Tendency

Mean =Average
Mode =Mode
 Median =Median

Measure of Variability
Range =Max-Min
Interquatile range Nhân tổng các data (hàm count)
Q1: *0.25
Q3: *0.75
Chẵn: average với số trên nó/ Lẻ: lấy luôn
 Là giá trị ở vị trí vừa tìm
Variance =variance
Standard deviation =std

Sensitivity
Mode: Least sensitive to outliers
Mean: Very sensitive to outliers
Median: Not sensitive to outliers

Normal distribution
Empirical Rule
What percentage of a normally distributed dataset fall between ± 1 standard deviations of mean?
68%
And between ±2 standard deviations? 95%
And between ±3 standard deviations? 99%

STANDARD NORMAL DISTRIBUTION

Z-score indicates how much a given value differs from the standard deviation. The Z-score, or
standard score, is the number of standard deviations a given data point lies above or below mean.
Standard deviation is essentially a reflection of the amount of variability within a given data set
x−μ
Z=
σ

symmetric distribution
mean = median = mode

skewed distribution
Left skew: mean < median < mode Right skew: mode < median < mean

Finding an area under the standard normal curve

Prob of obtaining a < z score Prob of obtaining a > z score
P(z>a)= 1 - norm.s.dist(a, true) P(z<a)=norm.s.dist(z score, true)

Find the amount of area between 0 and 1

=norm.s.dist(1, true) – norm.s.dist(0, true)

σ
CV(Coefficient of Variation) = *100
μ