midterm study guide

Simple random sample

Has each possible sample of a given size is equally to occur

Stratified sample

Is obtained by separating the population into nonoverlapping groups and then obtaining a simple random sample from each group.

Systematic sample

Is obtained by selecting every kth individual from the population (the first individual selected is a random number from 1 to k)

Cluster sample

Is obtained by selecting individuals within a randomly selected group of individuals

Convenience sample

Is a sample in which the individuals are easily obtained

Individual

Person or object that is a member of the population being studied

Population

Is the group to be studied

Variables

Characteristics of the individuals, within the population

Qualitative variable

Allows for classification of individuals based on some attribute or characteristic.

Screen type is a qualitative variable

Discrete variable

Quantitative variable that has either a finite number of possible values or a countable number of possible values.

Number of channels available is a discrete variable

Continuous variable

Is a quantitative variable that has an infinite number of possible values that are not countable

Size is a continuous variable

Response Variable

Is the variable of interest to be measured in the experiment. The value of the response variable is affected by the explanatory variables.

Explain the law of large numbers. How does this apply to gambling casinos?

As the number of repetitions of a probability experiment increases, the proportion with which a certain outcome is observed gets closer to the probability of the outcome. This applies to casinos because they are able to make a profit in the long run because they have a small statistical advantage in each game.

What are the requirements for a probability model?

Rule 1: all probabilities are between 0 and 1, inclusive.

Rule 2: the probabilities sum to 1.

An ‘AND’ compound event is generally associated with?

Multiplication

An ‘OR’ compound event is generally associated with?

Addition

Quality of a binomial experiment

The experiment is formed a fixed # of times

quality of a binomial experiment

The trials are independent

Quality of a binomial experiment

There are two mutually exclusive outcomes, success or failure

Quality of a binomial experiment

The probability of success is the same for each trial of the experiment