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Statistics
Final Exam Slide Notes Weeks 4 and 5
41
Business
Undergraduate 3
10/24/2011

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Term
8 Steps in Testing Relationships

Step 1
Definition
Statement of Null Research Hypothesis
Term
8 Steps in Testing Relationships

Step 2
Definition
Setting Level of Risk or Significance
Term
8 Steps in Testing Relationships

Steps 3 and 4
Definition
Selection of Appropriate Test
Term
8 Steps in Testing Relationships

Step 5
Definition
Determination of Value for Rejection
Term
8 Steps in Testing Relationships

Step 6
Definition
A Comparison of Obtained and Critical Value
Term
8 Steps in Testing Relationships

Steps 7 and 8
Definition
Making a Decision
Term
True or False

JUST BECAUSE TWO VARIABLES ARE RELATED TO ONE ANOTHER, THIS HAS NO BEARING ON WHETHER ONE CAUSES THE OTHER.
Definition
True
Term
True or False

Just because a correlation coeffiecient is significant, it does not mean its meaningful
Definition
True
Term
EVEN IF THERE IS A POSITIVE RELATIONSHIP, AND IF THERE IS A RELATIVELY SMALL CORRELATION,

THEN
Definition
THERE IS AN INDICATION THERE ARE LOTS OF OTHER THINGS GOING ON IN THAT RELATIONSHIP THAT MAY BE IMPORTANT AS WELL
Term
Prediction or Forecast
Definition
A statement about the way things will happen in the future, often by not always based on experience or knowledge.
Term
Logic of Prediction
Definition
Although guaranteed information about the information is in many cases impossible, prediction is necessary to allow plans to be made about possible developments
Term
True or False

Prediction is closely related to uncertainty.
Definition
True
Term
How do we begin to predict a result with a graph?
Definition
Create a regression equation, plot a regression line, or best line to fit.
Term
When using a scatter plot, regression equation, to come up with a best line or fit, it allows us to.
Definition
Use our best estimate.
Term
Error in Prediction
Definition
The distance between each individual data point and the regression line.
Term
Coefficient of Determination
Definition
Used in context of statistical models whose main purpose is the prediction of future outcomes on the basis of other related information.
Term
R Squared
Definition
The square of the sample of correlation efficient between the outcomes and their predicted values, or in the case of simple linear regression, between the outcomes and the values of the single regressor being used for prediction.
Term
What range does the coefficient of determination cover?
Definition
0 to 1
Term
Determining the score on one variable (criterian or dependent variable).
Definition
Prediction
Term
From the value of another score (predictor or independent variable)
Definition
Prediction
Term
The higher the magnitude of correlation between the two variables, the _______ the prediction.
Definition
Better
Term
This tells us how much imprecision there is in an estimate?
Definition
Standard error of estimate value.
Term
The higher the correlation the ________
the error.
Definition
Lower
Term
If correlation is +1 or -1, the standard error estimate is.
Definition
Term
If all data points fall on the regression line, than there is ______________ in the error estimate.
Definition
No error.
Term
Closer to regression line is better or worse prediction.
Definition
Better
Term
Standard error estimate is 0, than prediction is __________.
Definition
Prefect
Term
Parametric Statistics
Definition
A branch of statistics that assumes that data have come from a type of probability distribution and makes inferences about the parameters of the distribution.
Term
Nonparametric Statistics
Definition
Distribution-Free statistics

Do not require same assumptions as parametric tests.
Term
One-Sample Chi-Square
Definition
Allows you to determine if what you observe in a distribution of frequencies would be what you expect to occur by chance.
Term
Anova used to ___________.
Definition
test hypothesis, used when more than two groups are being tested, and these groups are compared on average.
Term
One way analysis of variance or single factor
Definition
ANOVA - a technique used to compare means of two of more samples (using F distribution). The can only be used for numerical data.
Term
Factorial ANOVA (including two way ANOVA)
Definition
1 continuous dependent variable with normal distribution

2 or more categorical independent variables
Term
Two Factor Anova
Definition
factorial design where there is more than one treatment factor being explored.
Term
F Test
Definition
In one way analysis of variance is used to assess whether the expected values of a quantitative variable within several predefined groups differ from each other.
Term
An F-test is any statistical test in which the test statistic has an F-distribution under the null hypothesis
Definition
It is most often used when comparing statistical models that have been fit to a data set, in order to identify the model that best fits the population from which the data were sampled.
Term
Two factor ANOVA
Definition
FACTORAL DESIGN WHRE THERE IS MORE THAN ONE TREATMENT FACTOR BEING EXPLORED.
Term
A one-way ANOVA measures the effect of one independent variable on a dependent variable,
WHEREAS
A two-way ANOVA
Definition
measures the effect of two independent variables on the dependent variable.
Term
FACTORIAL ANALYSIS OF VARIANCE
Definition
Factorial ANOVA measures whether a combination of independent variables predict the value of a dependent variable.
Term
The goodness of fit of a statistical model describes
Definition
how well it fits a set of observations. Measures of goodness of fit typically summarize the discrepancy between observed values and the values expected under the model in question.
Term
Would you pay attention to an r square of .5
Definition
No
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