Quantitative Business Analysis Final

Quantitative Business Analysis Final Leave the first rating Students also studied Terms in this set (43) MathsStatistics Save stats final mix of questions 61 terms sydneyrperkins13 Preview ap psych p value and correlation co...

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18 terms Paig Practice questions for this set Learn1 / 7Study using Learn -a numerical value ranging from 0 to 1 -indicates the chance, or likelihood, of a specific event occurring Hypothesisis an assumption about a population parameter such as a mean or a proportion null hypothesis (H0)-represents the status quo -states a belief that the population parameter is ≤, =, or ≥ a specific value -believed to be true unless there is overwhelming evidence to the contrary Choose an answer 1Hypothesis2Student's t-distribution 3Probability4one-tail hypothesis test Don't know?

alternative hypothesis (H1)-represents the opposite of the null hypothesis -believed to be true if the null hypothesis is found to be false -always states that the population parameter is >, ≠, or < a specific value two-tail hypothesis testis used whenever the alternative hypothesis is expressed as ≠ one-tail hypothesis testis used when the alternative hypothesis is stated as < or > Type I error-occurs when the null hypothesis is rejected when it is true -when it occurs the producer is looking for a problem in its process that does not exist Type II error-occurs when we fail to reject the null hypothesis when it is not true -when it occurs the customer is getting a product from a process that is not performing properly Correlation analysis-is used to measure both the strength and direction of a linear relationship between two variables -A relationship is linear if the scatter plot of the independent and dependent variables has a straight-line pattern correlation coefficient, r-indicates both the strength and direction of the linear relationship between the independent and dependent variables population correlation coefficient (ρ)refers to the correlation between all values of two variables of interest in a population confidence interval for the meanis an interval estimate around a sample mean that provides us with a range within which the true population mean is expected to lie confidence levelis defined as the probability that the interval estimate will include the population parameter of interest Student's t-distributionis used in place of the normal probability distribution when the sample standard deviation, s, is used in place of the population standard deviation, σ probability sampleis a sample in which each member of the population has a known, nonzero, chance of being selected for the sample simple random sampleis a sample in which every member of the population has an equal chance of being chosen Sampling erroris defined as the difference between the sample statistic and the population parameter Central Limit Theoremstates that the sample means of large-sized samples will be normally distributed regardless of the shape of their population distributions normal probability distributionis useful when the data tend to fall into the center of the distribution and when very high and very low values are fairly rare

exponential distributionis used to describe data where lower values tend to dominate and higher values don't occur very often.uniform distributiondescribes data where all the values have the same chance of occurring Discrete data-Values are whole numbers (integers) -Usually counted, not measured Continuous data-Can potentially take on any value, depending only on the ability to measure accurately -Often measured, fractional values are possible Variancea measure of the spread of the individual values around the mean of a data set expected monetary value (EMV)is the mean of a discrete probability distribution when the discrete random variable is expressed in terms of dollars Probability-a numerical value ranging from 0 to 1 -indicates the chance, or likelihood, of a specific event occurring ExperimentThe process of measuring or observing an activity for the purpose of collecting data Sample spaceAll the possible outcomes, or results, of an experiment joint probabilityprobability of the intersection of two events mutually exclusiveTwo events cannot occur at the same time during the experiment Conditional probabilitythe probability of Event A occurring, given the condition that Event B has occurred Permutationsare the number of different ways in which objects can be arranged in order Central tendencyis a single value used to describe the center point of a data set z-score-identifies the number of standard deviations a particular value is from the mean of its distribution -has no units Chebyshev's Theorem-states that for any number z greater than 1, the percent of the values that fall within z standard deviations above and below the mean will be at least -applies regardless of distribution

five-number summaryconsists of these five values:

-The minimum value -The first quartile -The second quartile -The third quartile -The maximum value

frequency distributionshows the number of data observations that fall into specific intervals Relative frequency distributionsdisplay the proportion of observations of each class relative to the total number of observations Statisticsthe mathematical science that deals with the collection, analysis, and presentation of data, which can then be used as a basis for inference and induction Primary datadata that you have collected for your own use Secondary Datadata collected by someone else Descriptive statisticsCollecting, summarizing, and displaying data Standard Deviation-square root of variance -common measure of consistency in business applications, such as quality control -measures the amount of variance around the mean Law of large numbersstates that when an experiment is conducted a large number of times, the empirical probabilities of the process will converge to the classical probabilities