Analyzing Bivariate Data
Contingency Table
– one variable on column and two on rows
Number of Times Each Pair of Values Occurs
Regression Analysis
– used to forecast the value of one variable based on another
y= Sales
x= Price
y=βn + b + μt
(β = Slope)
Scatter Plot
– around central value (mean)
Chapter Six: Probability
Probability
– the likelihood of an event taking place
•
Three Approaches
o
Apriori Classical Probability
– based on prior knowledge of the process
Probability of occurrence is:
x
x = number of ways each event occurs
t
t = total number of outcomes
Example: A deck of cards has 26 red cards and 26 black cards.
The probability of selecting a black card is:
26
52
o
Empirical Classical Probability
– based on observed data
o
Subjective Probability
– events and sample spaces (a sample space is the
collection of all possible events)
A simple event is described by a single characteristic
A joint event has two or more characteristics
P(A) the complement of P(A) is P(A
1
)
a
b
c
A
B
C
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 Fall '07
 DiAGNE
 Probability, Probability distribution, Probability theory, HDTV, classical probability

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