Key Terms
09/08/2014
Analytics- combines computer systems and statistics to generate new
ways to help analyze corporate enterprise data, particularly collections of
historical data
Categorical/ Qualitative Variable- have values that can only be
placed int

Fundamentals of Hypothesis-Testing Methodology
10/30/2014
The Null and Alternative Hypotheses:
Null hypothesisAlternative hypothesisKey points that summarize null and alternative hypothesis:
Critical Value of the Test Statistic:
Test statisticRegions of R

1. A dean is interested in determining the proportion of students who receive merit
scholarships. If the dean wanted to estimate the proportion of all students receiving
financial aid within 3% with 99% reliability, how many students would need to be
samp

Practice Test 1
1. If there are 40 squares in a can and 20 are yellow, 16 are black, and 4 are red. What is the probability
of:
a. getting matching squares in 2 draws from the can (with no replacement)?_
b. getting 2 non-matching squares in 2 draws from t

What Chp. 11 Consists of
11/17/2014
Chi-Square Test for the Difference Between Two
Proportions
11/17/2014
X^2 test for the difference between two proportion
The X^2stat test statistic shown in equation 11.1 approximatley
follows chi-square (x^2) distribut

1.
Class Limits
2.5-7.5
7.5-12.5
12.5-17.5
17.5-22.5
Midpoint
Frequency
12
15
10
23
CF
X*f
Mean=
Mode=
Median=
2. A certain type of new business succeeds 60% of the time. Suppose that three such
businesses open (where they do not compete with each other,

1. Which of the following is NOT a reason for the need for sampling?
a. It is usually too costly to study the whole population
b. It is usually too time consuming to study the whole population
c. It is sometimes destructive to observe the entire populatio

Confidence Interval Estimate for the Mean (Known)
10/23/2014
The Z value needed for constructing a confidence interval is called the
critical value
95% confidence correspondes to an
values of 0.05
The critical Z value corresponding to a cumulative area of

Define
09/08/2014
Define the variables that you want to study in order to solve a
business problem or meet a business objective
Collect
09/08/2014
Collect the data from appropriate sources
Primary source
When you collect your own data
Secondary source
If

Central Tendency
09/08/2014
Central tendency:
Central tendency- is the extent to which the data values group
around a typical central value
Variation- the amount of dispersion, or scattering, of values away
from a central value
Shape- the pattern of the d

Basic Probability Concepts
09/12/2014
Basic Probability Concepts:
Probability- is the numeric value representing the chance, likelihood,
or possibility that a particular event will occur
Impossible event- an event that has no chance of occurring
Certain e

Types of Sampling Methods
10/23/2014
Types of Sampling Methods:
Nonprobability sample-you select the items or individuals without
knowing their probabilities of selection
Convenience sampling- items selected are easy, inexpensive, or
convenient to the sam

The Probability Distribution for a Discrete Random
Variable
09/25/2014
A probability distribution for a discrete random variable- is a
mutually exclusive list of all the possible numerical outcomes along with the
probability of occurrence of each out come

Types of Regression Models
Create a scatterplot to examine the relationship
Simplest relationship is straight line (linear)
Six Types of Relationships
12/04/2014
Determining the Simple Linear Regression Equation
12/04/2014
EXAMPLE:
Least Squares Method:
C