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Eco254 Summary (Full) 08024665051

The document provides an overview of probability distributions, distinguishing between discrete and continuous types, and outlines various distributions such as Poisson, Bernoulli, and Normal. It also discusses hypothesis testing, types of errors, and statistical tests like t-tests and chi-square tests, emphasizing their applications in statistical analysis. Additionally, it touches on regression analysis and its significance in modeling relationships between variables.

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0% found this document useful (0 votes)
218 views12 pages

Eco254 Summary (Full) 08024665051

The document provides an overview of probability distributions, distinguishing between discrete and continuous types, and outlines various distributions such as Poisson, Bernoulli, and Normal. It also discusses hypothesis testing, types of errors, and statistical tests like t-tests and chi-square tests, emphasizing their applications in statistical analysis. Additionally, it touches on regression analysis and its significance in modeling relationships between variables.

Uploaded by

Taye Pablo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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ECO254 SUMMARY

TO BUY THE FULL SUMMARY OF ECO254 PLUS OTHER COURSES

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To define probability distribution for simplest cases, you need to distinguish discrete and
continuous random variables

The random variable is denoted by ____________


X

A probability distribution is also called a frequency function

A discrete probability distribution is defined as a probability distribution characterized by a


probability mass function

If the distribution of a random variable x is discrete and x is called a discrete random variable

The most well known discrete probability distributions used for statistical modeling are
 The Poisson distribution
 The Bernoulli distribution
 The binomial distribution
 The geometric distribution
 The negative binomial distribution

The discrete uniform distribution is commonly used in computer programs that make equal –
probability random selections between a numbers of choices

A ____________probability distribution is a probability distribution that has a probability


density function
Continuous

Lebesgue measure is the standard way of assigning a measure to subsets of an n-dimensional


volume

If the distribution of x is continuous, then x is called a ______________variable


Continuous random

These are examples of continuous probability distribution


 Normal
 Uniform
 Chi-squared

A continuous random variable is the one which can take a continuous range of values – as
opposed to a discrete distribution, where the set of opposite values for the random variable is
at most countable

The variance is denoted by the symbol 𝜎𝜎2 (pronounced sigma (squared)

Probability distributions is used for so many purpose such as measurement of different possible
outcome, a random experiment, survey, procedure of statistical inferences and each probability
distribution is applied to a particular situation and analysis

_______________distributions show the distributions of probabilities associated with values or


ranges of a random variable
Probability

A continuous random variable is a random variable where the data can take infinitely many
values

The Hyper geometric distribution is a probability distribution that makes use of discrete
variables and use of combinatorial analysis

A type of probability distribution in which all outcomes are equally likely is called
_______________
Uniform distribution

A deck of cards has a uniform distribution because the likelihood of drawing a heart, a club, a
diamond or a spade is equally likely

The Cauchy distribution was named after Augustin Cauchy

The Cauchy distribution is a _____________probability distribution


Continuous

The Cauchy distribution is also known among physicists as the Lorentz distribution
The Cauchy distribution is also known among physicists as the ______________distribution
Lorentz

The Cauchy distribution is often used in statistics as the canonical example of a "pathological"
distribution since both its mean and its variance are undefined

The Cauchy distribution has no moment generating function


True

The gamma distribution is a two-parameter family of continuous probability distributions

The beta distribution is a family of continuous probability distributions defined on the interval
[0, 1] parametrized by two positive shape parameters, denoted by α and β, that appear as
exponents of the random variable and control the shape of the distribution

The assumptions are known as ________________


Hypotheses

There are _____________types of errors in hypothesis testing


Two

The two types of errors in hypothesis testing are called type 1 and type 2 errors

__________error occurs when/if an hypothesis (Null hypothesis) is rejected when it should be


accepted
Type 1

Type 1 error is known as _______________ risk


producer’s

Type 2 error is known as ____________ risk


consumer’s

The probability (or risk) or committing type 1 error on a true null hypothesis is denoted by the
Greek letter alpha (𝛼𝛼) called α.‒ risk

The probability of committing a type 2 error is denoted by the Greek letter beta (𝛽𝛽) called
beta risk
The probability of correctly rejecting (𝐻𝐻0) when it is false is called the power of the statistical
test

In test of hypothesis, the maximum probability of risking a type 1 error is known as the level of
significance and the probability is usually decided upon before date collection

A statistical test in which the critical area of a distribution is one-sided so that it is either greater
than or less than a certain value, but not both is referred to as_________________ test
One-tailed

The one-tailed test gets its name from testing the area under one of the tails (sides) of a normal
distribution, although the test can be used in other non-normal distributions as well

A statistical test in which the critical area of a distribution is two sided and tests whether a
sample is either greater than or less than a certain range of values is known
as________________ test
Two-tailed

The twotailed test gets its name from testing the area under both of the tails (sides) of a normal
distribution, although the test can be used in other non-normal distributions

The normal curve is one of the most popular models used in statistical tests of hypothesis

For a non directional hypothesis, a _________________test is used when finding the critical
region
Two-tailed
The procedures for carrying out tests for hypothesis
 State the null hypothesis(𝐻𝐻0) and the alternative hypothesis (𝐻𝐻1).
 State the criterion level of significance given
 Calculate the mean and standard deviation of the given population or their estimates, if
not given
 Compute the appropriate statistics which could be standard z or t value using the
appropriate formulas and obtain the calculated value
 Determine the tabulated or critical value corresponding to the given level of significance
 If the calculated value is less than the tabulated value (i.e. falls within the accepted
region), we accept the null hypothesis

Statistical Test for Mean of a Single Population when Population Variance is known

In this situation, the population for which inferences is to be made is assumed to be normally
distributed with mean (𝜇𝜇)and variance 𝜎𝜎2. The test statistic will be the z-test.
Statistical Test of a Single Population when the Population Variance is known

And the number of degree of freedom is n-1 and the population is assumed to be normal.

Example 2
A midwife claims that the mean weights of babies delivered at her maternity clinic is 3.5kg. A
statistician takes a sample of 10 babies and obtains the following weights:
2.8, 2.5, 3.2, 3.5, 3.7, 2.7, 4.0, 4.5, 3.9, 3.6. Test the midwife’s claim at 0.05 level of significance
The word “better” implies that the hypothesis is ________________
Directional

The ____________is the probability of observing a sample statistic as extreme as the test
statistic
P-value

In statistics, data is collected from a carefully selected sample from the population

Sampling where each member of the population may be chosen more than once is called
sampling with replacement

Sampling where each member cannot be chosen more than once is called sampling without
replacement
A population is considered to be known when we know the probability distribution 𝑓𝑓(𝑥𝑥)
(probability function or density function) of the associated random variable �

Sample parameters are those parameters that are used in estimating variables of selected
population parameters

_____________error occurs when there is a difference in the values of a population parameter


and that of the corresponding statistic
Sampling

Sampling error (E) is defined as the difference between the sample statistic (s) and the
population parameter being estimated (P)

A ______________is the set of all possible values of a particular statistic


Sampling distribution

Frequency Distribution

The first class or category for example consists of height from 60 to 62 inches, indicated by 60 –
62 called __________________
Class interval

The class interval 59.5 – 62.5, the number 59.5 and 62.5 are called ___________________
Class boundaries
The midpoint of the class interval, which can be taken as representative of the class is called
mark corresponding to the class interval 60 – 62 is 61

A graph for frequency distribution which is supplied by a histogram or by a polygon graph is


called a ____________________
Frequency polygon

A t-test is any statistical test in which the test statistic follows a student’s t distribution if the
null hypothesis is supported

A statistical test in which the test statistic follows a student’s t distribution if the null hypothesis
is supported is called ______________
t-test

The T statistic was introduced in ____________ by William Sealy Gosset


1908

T statistic was introduced in 1908 by an Ireland chemist known as_________________


William Sealy Gosset

Guinness had a policy of allowing technical staff leave for study popularly called
_______________
Study leave

An F test can be defined as any statistical test in which the test statistics has an F distribution
under a null hypothesis

F Test was coined by George, W. Snedeaor

A ___________can said to be a measurement of how expectations are compared to results


Chi-square

Chi-square test (𝑋𝑋2 𝑡𝑡𝑡𝑡𝑡𝑡𝑡𝑡) is a statistical hypothesis test where the sampling distribution of
the test statistic

Examples of Chi-Square Distribution


 Pearson’s Chi-Square Test
 Discrete Uniform Distribution
 Yate’s correction for continuity
 Cochram – Mantel Statistics
 Mc Nemar’s Test
 Turkey’s Test of Additivity

Yate’s correction for continuity is also called Yate’s chi-squared test

Chi-square goodness of fit testis applied when you have one categorical variable from a single
population

Chi-square goodness is used to determine whether sample data are consistent with a
hypothesized distribution

The chi-square goodness of fit test is appropriate when the following conditions are met:
 The sampling method is simple random sampling
 The variable under study is categorical
 The expected value of the number of sample observations in each level of the variable is
at least 5

The term regression was introduced by Francis Galton

The term regression was introduced by ________________


Francis Galton

Regression analysis is widely used for prediction and forecasting, where its use has substantial
overlap with the field of machine learning

Regression analysis is also used in casual relationship between a linear model that is between
the dependent variable to an independent variables, but it should be noted that correlation
does not imply causation like linear regression analysis
Three Conceptualizations of Regression Analysis

Linear regression is an approach for modelling the relationship between s scalar dependent
variable y and one or more explanatory variables denoted x

An approach for modelling the relationship between s scalar dependent variable y and one or
more explanatory variables denoted x is called _______________
Linear regression

Regression analysis generates an equation to describe the statistical relationship between one
or more predictor variables and response variables

Regression coefficients represent the mean change in the response variable for one unit of
change in the predictor variable while holding other predictors in the model constant

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