1Statistics
Science of collecting, organizing, analyzing and interpreting data to make more effective decisions
2Descriptive statistics
Methods of organizing, summarizing, and presenting data
3Inferential statistics
Making inferences about a population based on a sample
4Population
Entire set of objects of interest
5Sample
A portion of the population
6Qualitative variables
Nonnumeric variables
7Quantitative variables
Numeric variables (discrete = finite, continuous = infinite)
8Levels of measurement
Determines how data should be summarized and presented and indicates the type of statistical analysis that can be performed (NOIR)
9Nominal
Data presented as labels/names, has no order, can only be classified or counted
10Ordinal
Classified data that is either ranked or rated on a relative scale
11Interval
The interval or distance between values is meaningful
12Ratio
The data has a meaningful interpretation of 0 on the scale
13Measures of location
Ways to describe quantitative data in terms of centrality (mean, median, mode)
14Measures of dispersion
Ways to describe quantitative data in terms of variation (range, variance, standard deviation)
15Mean
The average of a set of data
-atleast interval level
-unique
-sum of deviations of each value = 0
-affected by outliers
16Median
The middle value of a set of data
-atleast ordinal level
-not affected by outliers
-unique
17Mode
The value that appears most frequently in a set of data
-atleast nominal level (all levels)
-not unique
18Range
The difference between the maximum and minimum values in a set of data
- (-): does not consider all values in a dataset
19Variance
The variation around the mean (need to know mean to calculate)
-answer is in squared units
- = sum of (x-xbar)squared / n-1
20Standard deviation
The positive square root of the variance
21Chebyshev's theorem
For any set of observations, the proportion of values that lie within k standard deviations of the mean is at least 1-1/k^2 where k>1
22Probability distribution
Lists all the possible outcomes for an experiment and their probabilities
-probability of an outcome between 0 and 1
-outcomes are mutually exclusive
-list of outcomes are exhaustive (added = 1)
23Random variable
A variable measured as a result of an experiment
-discreet and continuous random variables
24Normal probability distribution
A probability distribution of a continuous random variable that is . . .
-bell-shaped
-asymptotic
-symmetrical around the mean
-total area under curve = 1
25Standard normal probability distribution
A unique distribution where the mean is 0 and the standard deviation is 1
26Z-value
How far away a value is from the mean in units of standard deviation
- = (x + mu) / standard deviation
27The empirical rule
If a random variable is normally distributed, approximately
-68% of observations will lie within +- 1 s.d. of the mean
-95% will lie within +- 2 s.d. of the mean
-99.7% will lie within +- 3 s.d. of the mean
28Simple random sampling
All members of the population are known and have the same chance of being selected
29Systematic random sampling
A random starting point is selected, and then every kth member of the population is selected
30Stratified random sampling
The population is divided into strata, and a sample is randomly selected from each stratum
31Cluster sampling
The population is divided into clusters using naturally occurring geographic or other boundaries, and then clusters are randomly selected, and a random sample is selected from the clusters
32Sampling distribution
A probability distribution of sample statistics
33Sampling error
The difference between a population parameter and a sample statistic
34Central limit theorem
If the population follows a normal probability distribution or the sample size is >30, then the sampling distribution of the sample mean is approximately normal
35Point estimate
A value computed from sample information used to estimate a population parameter (ex: sample mean or sample proportion)
Precision determined by:
1. level of confidence (larger CL, lower precision)
2. variability in population (greater variation, lower precision)
3. sample size (n) (greater sample size, higher precision)
36Confidence interval
An interval of values in which the parameter will fall under a certain level of predetermined confidence
- To compute a confidence interval, we must know whether the variance is known or unknown
- If the variance is known, we use the z-distribution
- If the variance is unknown, we use the t-distribution
37T-distribution
A distribution used when the variance is unknown and the sample size is small (also with quantitative data)
-continuous
-bell shaped
-mean = 0, s.d. depends on n
-more spread out (more variability)
-uses degrees of freedom
38Z-distribution
A distribution used when the variance is known and n is large
-also with qualitative data
-continuous
-bell shaped
mean = 0, s.d. = 1
narrower than t-dist
does not use degrees of freedom
39Degrees of freedom
The number of independent variables that can be estimated in a statistical analysis
40Proportion
The fractionatio/percent indicating the part of the sample having a particular trait/attribute
41to create a confidence interval for a proportion, 2 conditions must be met
1. binomial conditions
2. n(p) and n(1-p) >= 5
42choosing an appropriate sample size based on 3 factors
1. Margin of error (E) the researcher will tolerate
2. level of confidence desired
3. variation of population being studied
43finite population factor
if sampled population is finite then adjustments to the margin of error need to be made to compute the CI for a sample proportion or mean
*when sample is large compared to the population you need to adjust margin of error
44Hypothesis testing
A procedure based on sample evidence and probability to determine whether a hypothesis is reasonable
45Null hypothesis
The hypothesis being tested, states the 'status quo' about the population parameter
46Alternative hypothesis
The hypothesis being researched, states the 'expectation' about the population parameter
47Type 1 error (alpha)
Rejecting the null hypothesis when it is actually true
48Type 2 error (beta)
Accepting the null hypothesis when it is actually false
49Test statistic
A sample value used to reject or accept the null hypothesis (t or z)
50Critical value
The dividing point between where the null hypothesis is rejected and where it is not
-# from chart to create the RR
-reject the null if the test statistic falls in RR set by critical value
51P-value
The probability of observing a sample value as more extreme than the one currently being observed
-reject null if p-value < alpha level