Business Statistics

Definition: The Degrees of Freedom refers to the number of values involved in the calculations that have the freedom to vary. In other words, the degrees of freedom, in general, can be defined as the total number of observations minus the number of independent constraints imposed on the observations. The degrees of freedom are calculated for the following statistical tests … [Read more...] about Degrees of Freedom

Definition: The Hypothesis is an assumption which is tested to check whether the inference drawn from the sample of data stand true for the entire population or not. Hypothesis Testing Procedure The following steps are followed in hypothesis testing: Set up a Hypothesis: The first step is to establish the hypothesis to be tested. The statistical hypothesis is an … [Read more...] about Hypothesis Testing Procedure

Definition: The Hypothesis Testing is a statistical test used to determine whether the hypothesis assumed for the sample of data stands true for the entire population or not. Simply, the hypothesis is an assumption which is tested to determine the relationship between two data sets. In hypothesis testing, two opposing hypotheses about a population are formed Viz. Null … [Read more...] about Hypothesis Testing

Definition: The Sampling Distribution of Standard Deviation estimates the standard deviation of the samples that approximates closely to the population standard deviation, in case the population standard deviation is not easily known. Thus, the sample standard deviation (S) can be used in the place of population standard deviation (σ). Symbolically, S= standard error of the … [Read more...] about Sampling Distribution of Standard Deviation

Definition: The Sampling Distribution of Proportion measures the proportion of success, i.e. a chance of occurrence of certain events, by dividing the number of successes i.e. chances by the sample size ’n’. Thus, the sample proportion is defined as p = x/n. The sampling distribution of proportion obeys the binomial probability law if the random sample of ‘n’ is obtained … [Read more...] about Sampling Distribution of Proportion

Definition: The Sampling Distribution of the Difference between Two Means shows the distribution of means of two samples drawn from the two independent populations, such that the difference between the population means can possibly be evaluated by the difference between the sample means. Let say, there are two populations, first of size N1, with mean ?1, and standard … [Read more...] about Sampling Distribution of the Difference Between Two Means

Definition: The Sampling Distribution of Median shows the distribution of sample medians, a mid-value in the items arranged in some chronological order in the sample drawn from the population. If the population is large approximated by the normal distribution with mean? And a standard deviation σ, the medians of random samples of size n are distributed with mean? And a … [Read more...] about Sampling Distribution of Median

Definition: The Sampling Distribution of the Mean is the mean of the population from where the items are sampled. If the population distribution is normal, then the sampling distribution of the mean is likely to be normal for the samples of all sizes. Following are the main properties of the sampling distribution of the mean: Its mean is equal to the population mean, … [Read more...] about Sampling Distribution of Mean

Definition: The Sampling Distribution helps in determining the degree to which the sample means from different samples differ from each other, and the population mean to determine the degree of closeness between the particular sample mean to the population mean. In other words, the sampling distribution constitutes the theoretical basis of inferential statistics that … [Read more...] about Sampling Distribution

Definition: The Sample is the representative of the population from where it is drawn, and thus the Sample Distribution measures the frequency with which the number of subjects that make up the sample is actually drawn for a given research study. The samples are drawn when the population size is large, and it is not possible for an investigator to completely enumerate all … [Read more...] about Sample Distribution