Chapter1 - Chapter 1 Why study Statistics In our...

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Chapter 1: Why study Statistics? In our information age, it is important to be able to absorb and interpret vast amount of data to remain competitive. Information is generally summarized in some concise statistics: inflation rate, approval rating, satisfaction rate, etc. 1.1 Decision Making in an Uncertain Environment Most decisions are made in an uncertain environment: What major to choose, when you barely know anything about any major? In which direction will the stock market go? 1.2 Sampling A successful decision-making is based on a good knowledge of the target population. But for practical reasons, it is not possible to study the whole population. Generally, a subset of the population or sample, is studied. A population is the complete set of all items that interest an investigator. Population size, N, can be very large or even infinite. Example: All registered voters in the U.S. All Boston University students A sample is an observed subset of population values with sample size given by n. A simple random sampling or random sample
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This note was uploaded on 04/29/2008 for the course EC 305 taught by Professor Rivas during the Fall '08 term at BU.

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Chapter1 - Chapter 1 Why study Statistics In our...

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