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Basics of Statistics Lecture #9: Hypothesis Testing of Mean and Standard Deviation

As promised last time , I will introduce the concept of hypothesis testing.  This is finally getting to the meat and potatoes of statistical analysis. There are three things that need to be true in order for a hypothesis to be held true: The data needs to be sampled randomly.  A random sample is exactly what it says on the tin; a group from the population where each individual has an equal chance of being picked. We need to know the sample mean and standard deviation . One or both of the following: Data needs to come from a normal distribution There needs to be a large sample size (for a lot of cases, at least 30, but the more the merrier). There are 5 steps for hypothesis testing from either of two methods.  Statisticians typically distinguish between whether or not we know the population standard deviation.  Realistically, this means whether we know the standard deviation for the population (everyone) or for the sample (small portion of everyone ...

Basic Statistics Lecture #0: Basic Terms and Calculations

This is an entry in the Basic Statistics Lecture Series which I have realized that I have failed to incorporate into the series so far, and I apologize for that.  This lecture is going to cover the basic calculations required for all of statistical analysis, on a fundamental level. When we collect statistical data, we typically collect it on a small part of the population as a whole.  The population is the entire group for which a sentiment holds true.  This small part of the population as a whole is called the sample of the population, or just sample for short.  The number of data points we collect -- the number of items in the sample -- is called the sample size, which is typically denoted by the letter n. In statistics, we typically calculate the arithmetic mean, which is the sum of all values divided by the sample size.  For the population as a whole, this is denoted by the greek letter μ (mu), and for a sample, it's denoted by x . The sample mean ...

Basic Statistics Lecture #8: Anscombe's Quartet

"There are three kinds of lies: lies, damned lies, and statistics." - Unknown As promised last time , I will be covering Anscombe's Quartet.  It is an idea where people may use statistics to lie about a data set.  It is a series of data sets developed by statistician Francis Anscombe and published in the journal American Statistician in 1973. I'm going to provide you with four sets of data.  Do me a favor and apply what you know of statistical analysis to them.  If the statistical data look weird to you, don't be scared; you may have done the analysis perfectly.  Here's the four sets: I II III IV x y x y x y x y 10 8.04 10 9.14 10 7.46 8 6.58 8 6.95 8 8.14 8 6.77 8 5.76 13 7.58 13 8.74 13 12.74 8 7.71 9 8.81 9 8.77 9 7.11 8 8.84 11 8.33 11 9.26 11 7.81 ...

Basic Statistics Lecture #7: Quantitative, Continuous, and Numerical Data

As promised last time, today I will cover basic calculations of data accumulated from real data.  Please take note that all of the following is for the simple case of one group of data.  For two or more distinct groups of data, the calculations will be similar, but slightly more specific due to the nature of 2+ distinct groups of data.  I will cover that in a later post, which will be labeled as ANOVA.  As a side note, I'm a baseball fan, so I'm going to provide examples from the MLB. This information has the labels for the data of a sample, not the population.  The population is the set of all possible people or objects which falls under the category under study.  If we were studying the 2017 ERA's of pitchers, the population would be all MLB pitchers who have pitched in 2017.  The sample is the subset of the population which we are getting the data points from.  If we want to look at the 8 teams who have made it to the Division Series, then ...

Basic Statistics Lecture #6: Types of Graphs

As mentioned last time , I am going to cover different types of graphs Pie charts  vs. bar charts: Pie charts are those graphs where the data is represented as slices of a circle.  We've all seen pie graphs, and it is exactly what it says on the tin. Bar graphs are another type of data visualization which most people have seen.  It is where the data is represented as bars, where the x-axis is the independent variable, and the y-axis is the dependent variable. Pie charts have the advantages of displaying categories within one set with respect to one another and being used best with percentages.  They have the disadvantages of needing each category displayed to be read correctly (no truncation) and that all data values must be present.  Bar charts have the advantages of being very flexible (there is no distortions from truncating categories) and they can compare 2 or more data sets.  The disadvantage is that it is not very useful for...

Basic Statistics Lecture #5: Baye's Theorem

As promised last time , I am going to cover Baye's Theorem. If Tree diagram is the common name for Bayes Theorem.  Recall that conditional probability is given by $P(A \mid B) = \frac{P(A \wedge B)}{P(B)}$.   For tree diagrams, let's say that we have events A, B 1 , B 2 , B 3 , … (the reason we have multiple B's is because they all are within the same family of events) such that the events in the family of B are mutually exclusive and the sum of the probabilities of the events in the family of B are equal to 1. Then we have $$P(B_i \mid A)= \frac{P(B_i)*P(A \mid B_i)}{\sum_{m=1}^{n}[P(B_m)*P(A \mid B_m)]}$$  What this means is reliant on the tree diagram. If we are only looking at the sub-items of A, this is what the tree diagram would look like. If J has a probability of 100%, and P(C) and P(D) are not 0, then when we are trying to find the probability of any of the B's being true given that A is true, we have to set the probability of A to be t...

Basic Statistics Lecture #4: Intro to Probability and Venn Diagrams

As promised last time , this lecture introduces the concept of Probability Theory.  This is necessary to all statistical calculation.  After all, statistical analysis depends on the concept of probability in order to get to the statistics, especially when we start dealing with regression analysis and analysis of variance (ANOVA). The concept of probability deals with Venn diagrams.  For those of you who don't know, Venn diagrams are those diagrams which lets us easily represent which elements two (or more) sets have in common and which elements they don't have in common. Seems about right. So yes, they can be used to analyze costs.  And the intersection of physical systems.  In fact, they can be utilized to analyze almost any type of system.  I'm currently using venn diagrams to analyze known conspiracies  such as the Tuskegee Syphilis Experiment ,  the NSA spying scandal , and the governments' poisoning of the alcohol supply during...