Business Statistics

Definition: Cluster Sampling involves the formation of suitable clusters of units. Thereafter, collecting information on all the units in that sample of clusters chosen for research, keeping in mind the appropriate sampling strategy. For this purpose, the whole population to be studied is divided into small groups. After that, the researchers choose random groups using … [Read more...] about Cluster Sampling

Definition: Index Number is a statistical tool that gauges the changes in the degree of a variable or group of related variables over a specified period of time, or over two different situations. Index numbers are applicable to the values of economic time series. It reflects the general relative change that is primarily used by economists to present economic data time series … [Read more...] about Index Number

Definition: Statistics can be defined as a part of applied mathematics that is concerned with the collection, classification, interpretation, analysis or the numerical and categorical data and facts, and drawing conclusions, so as to present the same in a systematic manner. It involves a wide variety of methods which facilitates data analysis, for decision making … [Read more...] about Statistics

Definition: Measures of Central Tendency helps in identifying the single value around which all the data in a group (observations) have a tendency to cluster. Simply, a measure of central tendency is the value considered as the most representative figure of the entire data set. A measure of central tendency helps in identifying the center of all the observations and … [Read more...] about Measures of Central Tendency

Definition: The Chi-Square Test is the widely used non-parametric statistical test that describes the magnitude of discrepancy between the observed data and the data expected to be obtained with a specific hypothesis. The observed and expected frequencies are said to be completely coinciding when the χ2 = 0 and as the value of χ2 increases the discrepancy between the … [Read more...] about Chi-Square Test

Definition: The Chi-Square Distribution, denoted as χ2 is related to the standard normal distribution such as, if the independent normal variable, let’s say Z assumes the standard normal distribution, then the square of this normal variable Z2 has the chi-square distribution with ‘K’ degrees of freedom. Here, K is the sum of the independent squared normal variables. The … [Read more...] about Chi-Square Distribution

Definition: The F-distribution depends on the degrees of freedom and is usually defined as the ratio of variances of two populations normally distributed and therefore it is also called as Variance Ratio Distribution. Properties of F-Distribution There are several properties of F-distribution which are explained below: The F-distribution is positively skewed and with the … [Read more...] about Properties of F-Distribution

Definition: The F-Distribution is also called as Variance Ratio Distribution as it usually defines the ratio of the variances of the two normally distributed populations. The F-distribution got its name after the name of R.A. Fisher, who studied this test for the first time in 1924. Symbolically, the quantity is distributed as F-distribution with ν1 =n1-1 and ν2 = n2-1 … [Read more...] about F-Distribution

Definition: The t-distribution is a probability distribution method wherein the hypothesis of the mean of a small sample is tested, which is drawn from the systematic population whose standard deviation is unknown. It is a statistical measure used to compare the observed data with the data expected to be obtained from a specific hypothesis. Applications of t-distribution The … [Read more...] about Applications of t-Distribution

Definition: The t-Distribution, also known as Student’s t-Distribution is the probability distribution that estimates the population parameters when the sample size is small and the population standard deviation is unknown. It resembles the normal distribution and as the sample size increases the t-distribution looks more normally distributed with the values of means and … [Read more...] about t-Distribution