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Scale Type Permissible Statistics Admissible Scale Transformation One to One (equality (=)) Monotonic increasing (order (<)) Positive linear (affine) nominal (also denoted as mode, Chi-squared categorical) ordinal median, percentile mean, standard deviation, correlation, regression, analysis of variance All statistics permitted for interval scales plus the following: geometric mean, harmonic mean, coefficient of variation, logarithms Mathematical structure standard set structure (unordered) totally ordered set affine line

interval

ratio

Positive similarities one-dimensional (multiplication) vector space

Nominal scale

At the nominal scale, i.e., for a nominal category, one uses labels; for example, rocks can be generally categorized as igneous, sedimentary and metamorphic.

Ordinal scale

Rank-ordering data simply puts the data on an ordinal scale. Ordinal measurements describe order, In this scale type, the numbers assigned to objects or events represent the rank order (1st, 2nd, 3rd, etc.) of the entities assessed. An example of an ordinal scale is the result of a horse race,

Interval scale

Quantitative attributes are all measurable on interval scales, as any difference between the levels of an attribute can be multiplied by any real number to exceed or equal another difference. A highly familiar example of interval scale measurement is temperature with the Celsius scale.

Ratio scale

Most measurement in the physical sciences and engineering is done on ratio scales. Mass, length, time, plane angle, energy and electric charge are examples of physical measures that are ratio scales.

Example Manufacturer of cigarette brand claims avg nicotine content does not exceed 2.5mg Therfore Null: Ho : u =2.5mg. Compute the P-value 4. and shud be accepted if u is less than or equal to 2.5 Purpose OF Hypothesis testing is not to question the computed value of the sample statistic but to make a judgement about the difference between the sample statistic and a hypothesized population parameter. 1.5 Alernate H1 : u >2. The usual process of hypothesis testing consists of four steps. It is usually taken to be that the observations are the result of a real effect (with some amount of chance variation superposed). .Hypothesis Testing Hypothesis testing is the use of statistics to determine the probability that a given hypothesis is true. Compare the -value to an acceptable significance value The alternative hypothesis is the hypothesis used in hypothesis testing that is contrary to the null hypothesis. Identify a test statistic 3. Formulate the null hypothesis and the alternative hypothesis 2.

quartiles. The purpose of a bivariate analysis is the analysis of the relationship between the two variables. min. max.(Dependant&Independant) For example. standard deviation Bivariate analysis involves the analysis of two variables for the purpose of determining the empirical relationship between them. It is also used primarily for descriptive purposes. using categories based on gender and earnings: Multivariate analysis is based on the statistical principle of multivariate statistics.10. which involves observation and analysis of more than one statistical variable at a time. the technique is used to perform trade studies across multiple dimensions while taking into account the effects of all variables on the responses of interest. mode.range. It is commonly used in the first stages of research It describes central tendency . variance. In design and analysis. Uses for multivariate analysis include: Design for capability Inverse design. median dispersion . . the selection of concepts to fulfill a customer need Analysis of concepts with respect to changing scenarios Identification of critical design drivers and correlations across hierarchical levels. where any variable can be treated as an independent variable Analysis of Alternatives (AoA). a bivariate analysis intended to investigate whether there is any significant difference in earnings of men and women might involve creating a table of percentages of the population within various categories.mean. TYPES OF ANALYSIS Univariate analysis is carried out with the description of a single variable and its attributes of the applicable unit of analysis.

) The frequency data must have a precise numerical value and must be organised into categories or groups. also known as an error of the second kind. iv. CHI-SQAURE A chi-squared test. iii. also referred to as chi-square test or test. is any statistical hypothesis test in which the sampling distribution of the test statistic is a chi-squared distribution when the null hypothesis is true.) The total number of observations must be greater than 20 Formula for Chi-squared : χ 2 = ∑ (O – E)2 E Where: χ2 = The value of chi square O = The observed value E = The expected value ∑ (O – E)2 = all the values of (O – E) squared then added together A type I error. A type I error may be compared with a so called false positive in other test situations.) The data must be in the form of frequencies ii. A type II error may be compared with a so-called false negative in other test situations. is the wrong decision that is made when a test fails to reject a false null hypothesis. True State of the Null Hypothesis H0 True Type I error Correct H0 False Correct Type II error Statistical Decision Reject H0 Do not Reject H0 . also known as the chi-squared goodness-of-fit test or chisquared test for independence The test we use to measure the differences between what is observed and what is expected according to an assumed hypothesis is called the chi-square test The chi square test can only be used on data that has the following characteristics: i.7.) The expected frequency in any one cell of the table must be greater than 5. is the wrong decision that is made when a test rejects a true null hypothesis (H0). Pearson's chi-squared test. also known as an error of the first kind. A type II error. or any in which this is asymptotically true.

Possible correlations range from +1 to –1. Correlation is a statistical measurement of the relationship between two variables. A zero correlation indicates that there is no relationship between the variables. meaning that as one variable goes up. the other goes down. . meaning that both variables move in the same direction together.The probability of a Type I error is designated by the Greek letter alpha ()the probability of a Type II error is designated by the Greek letter beta (ß) 11. A correlation of +1 indicates a perfect positive correlation. A correlation of –1 indicates a perfect negative correlation.

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