Statistics

REVIEW of
BASIC STATISTICAL CONCEPTS
for Preparation to Study Regression
 Making Inferences
• Probability is the Language of Statistics
– Flip a Coin
• Population, Sample, Statistics
– Average Height of NYU Students
• Through Sampling, Make Inferences about the
Population
 Standard Notation
Measure Sample Population
Mean X 
Standard
S 
Deviation
2 2
Variance S 
Size n N
 Variation:
Statistical Analysis is All About Variability
 Variance &
Standard Deviation
1. Measures of dispersion
2. Most common measures
3. Consider how data are distributed
4. Show variation about mean (X or μ)

X = 8.3

4 6 8 10 12
Population Variance Formula
N
(X )
2

2

i 1
i  
 
N

( )  (X )  …  (X )
2 2 2
X 1   2   n  

=
N

Use N if Population
Variance
 Sample Variance Formula
n

( )
2
X  X
i
S 2  i1
n  1

( ) ( ) ( )
2 2 2
X  X  X  X  …  X  X
 1 2 n
= n  1

n - 1 in denominator!
Sample Standard Deviation Formula

2
S S

 (X i )
2
 X
i1

n 1


(X 1  X )  (X
2
2  X )  …  (X
2
n  X )
2

n 1
Interpreting Standard Deviation: Empirical
Rule

μ – 3σ μ – 2σ μ–σ μ μ+σ μ +2σ μ + 3σ

Approximately 68% of the measurements

Approximately 95% of the measurements

Approximately 99.7% of the measurements

Numerical Measures of Relative
Standing
Numerical Measures of Relative Standing:
Z–Scores
• Describes the relative location of a
measurement compared to the rest of the data
Sample z–score Population z–score
x–x x–μ
z= s z= σ

Measures the number of standard deviations

away from the mean a data value is located
Graphing Bivariate Relationships
 Graphing Bivariate Relationships
• Describes a relationship between two
quantitative variables
• Plot the data in a Scattergram
y y y

x x x
Positive Negative No
relationship relationship relationship
 Probability Distributions for
Continuous Random Variables
 Continuous Probability Density
Function

1. Mathematical formula Frequency

2. Shows all values, x, and (Value, Frequency)

frequencies, f(x)
• f(x) Is Not Probability f(x)

3. Properties
f ( x ) dx  1 x
All x (Area Under Curve) a b
Value
f ( x )  0, a  x  b
 Continuous Random Variable
Probability
b
Probability Is Area Under P (a  x  b )  af ( x ) dx
Curve!

f(x)

x
a b

© 1984-1994 T/Maker Co.

Normal Distribution
 The Standard Normal Table:
P(0 < z < 1.96)
Standardized Normal
Probability Table (Portion)
Z .04 .05 .06 s=1
1.8 .4671 .4678 .4686
.4750
1.9 .4738 .4744 .4750
2.0 .4793 .4798 .4803
m = 0 1.96 Z
2.1 .4838 .4842 .4846 Shaded area
Probabilities exaggerated
 The Standard Normal Table:
P(z > 1.26)
Standardized Normal Distribution

s=1

.5000
P(z > 1.26)
= .5000 – .3962
.3962
= .1038

1.26 Z
m=0
 The Standard Normal Table:
P(–2.78  z  –2.00)
Standardized Normal Distribution

s=1
P(–2.78 ≤ z ≤ –2.00)
.4973 = .4973 – .4772
= .0201
.4772

–2.78 –2.00 Z
m=0
Shaded area exaggerated
 Non-standard Normal μ = 5, σ = 10: P(5 <
X< 6.2)

X  6.2  5
Z  .12
 10
Normal Standardized Normal
Distribution Distribution

s = 10 s=1
.0478

m= 5 6.2 X m = 0 .12 Z
Shaded area exaggerated
Sampling Distributions
Common Statistics & Parameters
Sample Statistic Population Parameter

Mean X 

Standard
Deviation S 

Variance S2 2

Binomial ^
p p
Proportion
Properties of the Sampling
Distribution of x
 Sampling from
Normal Populations
• Central Tendency Population Distribution
 x  s = 10

• Dispersion
 m = 50 X
x 
n
– Sampling with Sampling Distribution
replacement n=4 n =16
X = 5 X = 2.5

m - = 50 X
X
 Sampling from
Non-Normal Populations
 Sampling from
Non-Normal Populations
• Central Tendency
Population Distribution
 x  s = 10

• Dispersion
 m = 50 X
x 
n Sampling Distribution
n=4 n =30
X = 5 X = 1.8

m - = 50 X
X
 Central Limit Theorem

As sample x 
size gets n
sampling
large
distribution
enough
becomes almost
(n  30) ...
normal.

 x 
X