Statistical Tests and Their Applications

Flashcards covering key statistical tests and their applications in real-world scenarios.

Independent Samples t-test

Used to compare the average values between two distinct groups, such as new customers versus existing customers.

ANOVA

Analyses variance among three or more groups to see if at least one group mean is different, like comparing average monthly sales across different regions.

Chi-Square Test

Evaluates whether there is an association between two categorical variables, such as loyalty program membership and purchase frequency.

Correlation

Measures the relationship between two continuous variables to determine if they increase or decrease together, such as advertising spend and sales revenue.

Regression

A statistical method to predict the change in a dependent variable based on the change in an independent variable, like how sales revenue changes with an increase in advertising spend.