MATH REVIEW
Rules of Algebra
Rule
Example
1.
x a x b x a b
3234 36
2.
( xa )b xab
(23 )2 26 64
xy x y
3.
(9)(4) 9 2 (3)(2) 6
4.
ln(ab) ln(a) ln(b)
ln(2 3) ln(2) ln(3)
5.
a
ln ln(a) ln(b)
b
8
ln ln(8) ln(3)
3
6.
ln(ab ) b ln(a)
ln(23 ) 3ln(2)
7.
ln(e x ) x
St Luke's Hospital - Direct Method of Cost Allocation
SUPPORT DEPARTMENTS
General Administration
Maintenance
Employee
Benefits
Department Costs
$4,000,000
$5,000,000
$4,000,000
Space (Square Feet)
Number of FTEs
Salary Dollars
8,000
15
$2,500,000
10,000
7
Two Sample Tests
What metric am I comparing on
this problem?
Means (Averages)
Variances
Proportions
Use a F-Test. df for
numerator and
denominator needed.
Critical values are not
symmetric.
Is the data
describing paired
differences?
Yes. Use a t-Test.
Cal
Chapter 01
Overview of Statistics
True / False Questions
1. Statistics is the science of collecting, organizing, analyzing, interpreting, and
presenting data.
True
False
2. Inferential statistics refers to generalizing from a sample to a population,
estim
Chapter 08
Sampling Distributions and Estimation
True / False Questions
1. The expected value of an unbiased estimator is equal to the parameter whose
value is being estimated.
True
False
2. All estimators are biased since sampling errors always exist to
Chapter 03
Describing Data Visually
True / False Questions
1. It is easier to read the data values on a 3D column chart than on a 2D column
chart.
True
False
2. The column chart should be avoided if you are plotting time series data.
True
False
3. The lin
Chapter 14
Time-Series Analysis
True / False Questions
1. A multiplicative time-series model Y = T C S I becomes an additive model if
we take the logarithm of each side of the equation.
True
False
2. A firm's income statement contains data measured over a
Chapter 11
Analysis of Variance
True / False Questions
1. One-factor ANOVA is a procedure intended to compare the variances of c
samples.
True
False
2. Analysis of variance is a procedure intended to compare the means of c
samples.
True
False
3. If you ha
THE FOLLOWING 3 QUESTIONS HAD ERRORS IN ASBE 4e EXAM QUESTION DATABASE.
CORRECTED TEXT IS MARKED BELOW
33. John wants to compare two means. His sample statistics were and . Assuming equal variances, the 95
percent confidence interval for the difference of
STATS2
PRACTICEEXAM
1. Whichisnotameasureofdispersion?
a) Meanabsolutedeviation(MAD)
b) Standarddeviation
c) Midhinge
d) Interquartilerange
2. Whichisacharacteristicofthemeanasameasureofcentraltendency?
a) Deviationsdonottosumtozerowhenthereareextremeval
Chapter 15
Chi-Square Tests
True / False Questions
1. In a chi-square test of a 5 5 contingency table at = .05, the critical value is
37.65.
True
False
2. If two variables are independent, we would anticipate a chi-squaretest statistic
close to zero.
True
Chapter 07
Continuous Probability Distributions
True / False Questions
1. A continuous uniform distribution is always symmetric.
True
False
2. The height and width of a continuous uniform distribution's PDF are the same.
True
False
3. A continuous uniform
Chapter 13
Multiple Regression
True / False Questions
1. In regression the dependent variable is referred to as the response variable.
True
False
2. If a regression model's F test statistic is Fcalc = 43.82, we could say that the
explained variance is app
TWO SAMPLE TESTS
January 21, 2015
TWO SAMPLE TESTS
Similar to one sample tests, a two sample test
will compare statistics with each other whereas
a one sample test compared a statistic against a
benchmark
DECISION PROCESS
State Hypothesis
Specify Decis
TEST FOR VARIANCE &
ANALYSIS OF VARIANCE (ANOVA)
January 28, 2015
COMPARISON OF VARIANCE
A comparison of variance can be just as
important or more important than comparing the
means of populations
The F distribution is not symmetrical
COMPARISON OF VARI
Accuracy and Significant Digits
Using a calculator does not guarantee accuracy. To obtain the right answer, you need to
use your calculator correctly and understand how to follow the rules for rounding based
on significant digits. Here are some key rules.
Excel Statistical Functions
Descriptive Statistics
2007 Function
2010 Function
Number of data items
COUNT(Data)
COUNT(Data)
Largest data value
MAX(Data)
MAX(Data)
Smallest data value
MIN(Data)
MIN(Data)
Mean
AVERAGE(Data)
AVERAGE(Data)
Median
MEDIAN(Data)
Finite Populations
If we take a sample without replacement from a finite population, we can adjust the
test statistic for or by multiplying the standard error in the denominator by the Finite
Population Correction Factor (FPCF):
FPCF =
N n
N 1
(finite pop
Chapter 17
Quality Management
True / False Questions
1. Quality control refers to methods used by organizations to ensure that their
products and services meet customer expectations.
True
False
2. An important attribute of quality is conformance to specif
Chapter 16
Nonparametric Tests
True / False Questions
1. Nonparametric tests can often be used in small samples.
True
False
2. Nonparametric tests may require special tables for small samples.
True
False
3. Nonparametric tests generally are more powerful
Chapter 02
Data Collection
True / False Questions
1. Categorical data have values that are described by words rather than numbers.
True
False
2. Numerical data can be either discrete or continuous.
True
False
3. Categorical data are also referred to as no
February 25, 2015
A Poisson distribution represents the number
of events per unit of time or space
Number of goals in a soccer or hockey match
Arrival of customers in a queue
Number of webpage requests arriving at a server
The Poisson distribution is defi
February 18, 2015
Goodness of Fit Tests
Does a sample resemble a given population?
M&M Example
Official color distribution is as follows:
13% Brown
13% Red
24% Blue
20% Orange
16% Yellow
14% Green
100% Total
Goodness of Fit Tests
The M&M color dis
Test for Equality of Two Proportions
Left-Tail Test
Two-Tail Test
H0: 1 2
H0: 1 = 2
H1: 1 < 2
H1: 1 2
p1 p2
Test statistic: z
Right-Tail Test
H0: 1 2
H1: 1 > 2
x1 x2 combined number of successes
n 1 n2
combined sample size
where pc
1 1
pc (1 pc )
n1
Test for One Proportion
Left-Tail Test
H0: 0
H1: < 0
Two-Tail Test
H0: = 0
H1: 0
Infinite Population
p 0
zcalc
0 (1 0 )
n
zcalc
Right-Tail Test
H0: 0
H1: > 0
Finite Population
p 0
0 (1 0 ) N n
n
N 1
Calculate p = x/n where x = number of successes and n
Windsor Clinic
Setting Fee-for-Service Prices on Individual Services
Variable cost per visit
Annual direct fixed costs
Annual overhead allocation
Demand for New Service in Patient Visits (Expected Volume)
Expected Total Costs
Patient visit breakeven price
MS-DRG
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MDC
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