Lind
Marchal
Wathen
Waite
1
Learning Objectives
LO
1 Explain why a sample is often the only feasible way to
learn something about a population.
LO
2 Describe methods to select a sample.
LO
3 Define and construct a sampling distribution of the
sample mean
Standard Normal
Distribution
1
Empirical Rule
The Empirical Rule (The 68-95-99.7 Rule) works great if we are
ooking at observations that are exactly 1, 2, or 3 from
he mean.
But, what if an observation is 2.76 from the mean?
3
2
+
+ 2
+ 3
68%
95%
99.
Confidence Intervals
Estimating Population
Means
1
Learning Objectives
LO
1 Define a point estimate.
LO
2 Define level of confidence.
LO
3 Construct a confidence interval for the population mean
when the population standard deviation is known.
LO
4 Constr
Joint Probability
1
Joint (AND) Probability
A joint probability is the probability of events A and
B happening at the same time (ie. wanting to find
P(A and B).
A joint probability (where events A and B happen at
the same time) is not the same as condit
Normal
Distribution
Introduction
1
Probability Distributions
Terminology
A random variable is a variable whose value is determined
by the outcome of a random experiment.
A probability distribution is a list of all possible values
of a random variable and
Probability Concepts
1
Learning Objectives
1 Define probability
LO 2 Explain the terms experiment, event, outcome,
permutations, and combinations
LO 3 Describe the classical, empirical, and subjective
approaches to probability
LO
2
Statistical Inference
W
Lind
Marchal
Wathen
Waite
1
Learning Objectives
LO
1 Explain why a sample is often the only feasible way to
learn something about a population.
LO
2 Describe methods to select a sample.
LO
3 Define and construct a sampling distribution of the
sample mean
T-BILLS, PROMISSORY NOTES, TIME VALUE OF MONEYMA10037 2013
_
(1) An $80,000 91 day T-bill was issued 35 days ago. What will it sell at today to yield the purchaser 5.25%?
(2) What is the price of a $100,000 182 day T-bill that yields 6.17%?
(3) JK bought
MA101
3.1 - Solving Basic Percent Problems
3.1 - Solving Basic Percent Problems Read: Ch.3, Sec.3.1 (p.67 - 72)
Percent is used to express a quantity out of 100 units and is represented by the symbol %
Portion = Rate x Base
50% of 60 = 0.50 x 60 = 30
the