Review for Test 2
1. Only 30% of all new medicines are profitable.
company developed 10 new medicines last year.
a) How many of the 10 new medicines
eventually become profitable?
A leading drug
b) Calculate the variance for the number
Partial Review for Final Exam
1. The quality control manager of an automobile parts factory would like to know if
there is a difference in the proportion of defective parts produced on different
days of the workweek. Random sample of 100 parts produced on
Hypothesis testing enables us to _ _ about a
_ _ of a _
_ by analyzing differences between the
_ _ and the _
_ _. In the words of John Marden
(Professor of Statistics at University of Illinois at UrbanaChampagne) hypothesis te
Estimation II and Sample Size
Confidence interval for a proportion:
where X=sample number of successes and n=sample size.
Note: P is the sample proportion of successes (events). We are
estimating , the population proportion (probability) of
Inferential Statistics: to use _ results to make
inferences about the _ from which the sample
was drawn. The _ population should be the same
as the _ population!
_ _: a single value that estimates a
Sampling and Sampling Distributions
1. Limitations of _ and _.
2. A sample is more _ than a census.
3. Measurement may be _.
Types of Sampling
Entities chosen without regard to _ of occurrence
The Normal Distribution
Continuous Probability Density Function: A mathematical function
That describes probability for a continuous variable.
Area = _, therefore
Total Area under the curve = _.
Area between two values = probability of an occurre
Covariance and Poisson
The covariance is applied to _ _ by
_ _ . The covariance describes how two
variables vary with respect to each other. If the covariance is
_ both investments vary in the same direction,
that is, as the return goe
Discrete Probability Functions
A _ Distribution for a discrete _
_ is a _ _ listing of all
possible outcomes and their associated _.
presented as a _, _, or _.
This can be
distributions represent the entire population.
One Sample Tests
p-value: The _ of obtaining a value for the _
_ equal to or more _ than the result
obtained given _ _ _.
If the p value is small:
If the p value is large:
When performing your analysis on computer always use the pval
If the two sets of measurements are _ a 2sample (independent) t-test is not appropriate.
Two sets of measurements are related if:
items or individuals are _ or
_ according to some
2 measurements are taken on
2 Proportion test &
Chi-Square Test of Independence
z-test for comparing 2 proportions:
The test statistic for comparing proportions of two independent
samples is a 2-proportion z test.
For the sample size to be large enough to use this approxim
Instead of comparing means between 2 groups we often need
to compare the _ among _ _
The parametric test to do this is called
_ _ _ (ANOVA).
_ or _ variable: The
quantitative variable you are measuring or observing.
Grading Rubric (With Notes) for Your Memo
When I grade your memos this is what I will look for.
In the memo: (2 points)
I will look for proper memo format including initialing your name on the from line with a
An introductory paragraph including:
Running head: STATISTICS
lnsiutbml Afl'nlbn STATISTICS 2
Fast operational setups have prompted contemporary busineses to inroduce innovative
techniques as a way of coping and maintaining relevance. While some of the
Chapter 2 Sections 1-3
Section 2.1: Summarizing a Categorical Variable
A frequency table consists of a complete list of the possible _categories_ with their
associated _counts_ (frequencies) and/or _percentages_ (relative
Chapter 8 Notes
Section 8.1: Three Ideas of Sampling
1. Sample Examine a Part of the Whole
The entire collection of individual elements of interest is the population.
A portion of the population is a sample.
A good sample will be representa
More Basic Probability
Note: You will need the Binomial tables for Lesson 6!
A population of 200 TSP stores, a womens casual clothing chain
was cross-classified on the basis of frequency of customer
visits (low, medium, high)and if the store was
_ is the likelihood that a particular event
We can write this symbolically as _.
_ P(E) _.
There are 3 types of probability:
_ _: The proportion of times
that an event can be theoretically expected to occur based
Answers to Partial Review for the Final
If you think there is an error in one of my answers email me and I will double check it.
Make sure that you can do an ANOVA completely with appropriate hypothesis tests for
the final exam.
Two proportion test
Chi-square Test of Independence
Sample size is 5 if original population is
Sample size is 30 if original population
is not symmetric.
Answers to Partial Review Test 2A
1. Binomial with n = 10 and = 0.3
a) E(x) = = n =3
b) 2 = n(1-) = 2.1
c) P(x6|n=10, =0.3) = 0.0473
2. P(x 4 | = 3) = 0.8153
3. Normal with = 31.5 and = 1.4
a) P(31<x<32|=31.5, =1.4) = P(-0.36<z<0.36) =
0.1406+0.1406 = 0.2
Answers to Partial Review for Test 3
H1: A B
Assumptions: 1. The original populations of gas mileages are approximately normally
2. The variances are equal.
3. independent random samples
H1: > 0.10
Two-Sample Test Review
Is the question about means or proportions?
Are the samples paired or not?
Is the question about variability?
For the following problems set up the hypotheses, write the test statistic, and state the assumptions.
1. The following da
Two-Sample Test Review
For the following problems set up the hypotheses, write the test statistics with its formula, state the
critical value decision rule, state the assumptions.
1. The following data represent samples of 10 books each of two production
Read all of chapter one in your textbook (Pages 1-16).
2. On page 14 do problems 1, 2, and 4. On pages 16 through 19 do
problems 5, 6, 7, 9, and 13. Word-process your answers to these
3. Find one article in a curre