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Statistical inference
creating ranges from samples in the hopes that those ranges contain the true number
Two types of variables
numerical and categorical
Types of numerical values
discrete (can take only integer value) or continous (can take any value within a range)
Types of categorical values
nominal (name the categories) and ordinal (have an intrinsic order)
Graphing categorical variables
pie charts, and bar charts/graph
Graphing numerical variables
histograms and box-plots
What information do you get from a histogram?
An idea of the center of the data, the spread of the data, the shape of the data and the modality.
Symmetric shape
bell-shaped, uniform, neither
What direction is skewed data?
To the opposite of where the data is heavy. Look for long tail
Modality
how many peaks are in the data
What information do you get from a box-plot?
The exact center of the data, how the data is spread, the shape of the data (are whiskers long or symmetrical?), outliers. Cannot see modality
What is the five number summary of data?
Minimum, maximum, median, and q1 and q3
bivariable
looking at two variables at the same time
How do you graphically describe bivariable categorical data?
Mosaic plots, stacked bar charts
How do you graphically describe bivariable numerical data?
scatterplots
How do you numerically describe bivariable numerical data?
correlation coefficient. If cor = 0, no linear correlation
What is the error in a scatterplot?
The difference between the LOB and the points
How do you numerically describe categorical data?
frequency tables
How do you numerically describe numerical data?
Mean, Standard deviation, median, and inner quartile range
70-95-99 rule
99% of data should be within 3 standard deviations from the center
Statistics
science of collecting, and organizing data from a sample with a focus on making conclusions about populations
When can we generalize results from a sample to a population?
When the sample is randomized (random from the entire population) and/or representative
Experimental sampling
data needs to be divided in at least two groups (control and treatment), Cannot make generalizations about a population
Observational sampling
data is just collected with no manipulation, Cannot be used to draw conclusions for cause and effect
Convenience sampling
Data is gathered however possible, like polling people on the side of the road
Simple random sampling
having a list of the entire population and sampling randomly. Sample can end up very unrepresentational
Stratified sampling
splitting the population using one criteria. For example, in a population of 100, 30% male and 70% female, selecting 3 random males and 7 random females to make it random and representational
Clustered sampling
Stratification done multiple times and get many stratified samples (clusters). Picks a couple of clusters to study and combines
Multistage sampling
creating a cluster sample and then sampling from it as if it is a population to form the final sample