Chapter 3

Question 1

It is the practice or science of collecting and analyzing numerical data in large quantities especially for the purpose of inferring proportions in a hole from those in a representative sample

Answer 1

Statistics

Question 2

It is used in almost all analysis in order to derive insights like projections and how different sets of data affect each other

Answer 2

Statistics

Question 3

It is a central or typical value for a probability distribution

Answer 3

Measures of central tendency

Question 4

It may also be called a center or location of the distribution

Answer 4

Measures of central tendency

Question 5

Central tendency often called

Answer 5

Averages

Question 6

Measures of central tendency

Answer 6

mean
median
mode

Question 7

It can be calculated for either a finite set of values or for a theoretical distribution such as the normal distribution

Answer 7

Middle tendency

Question 8

The tendency of quantitative data to cluster around some central value

Answer 8

Central tendency

Question 9

It is the sum of all measurements divided by the number of observations

Answer 9

mean

Question 10

An average of the data

Answer 10

Mean

Question 11

It is the midpoint of our data that separates the upper and lower half of the data set

Answer 11

Median

Question 12

These are the only measures of central tendency that can be used for ordinal data, in which values are ranked relative to each other but are not measured absolutely

Answer 12

Median and mode

Question 13

The most frequent value in the data set

Answer 13

Mode

Question 14

The only central tendency measure that can be used with nominal data which have purely qualitative category assignments

Answer 14

mode

Question 15

Also called the variability, scatter, spread

Answer 15

Measures of dispersion

Question 16

It is the extent to which a distribution is stretch or squeezed

Answer 16

Dispersion

Question 17

Measures of dispersion

Answer 17

range
mad
variance
standard deviation

Question 18

The difference between the smallest and largest data point in the set

Answer 18

range

Question 19

It is the average of the absolute deviations from a central point

Answer 19

Mean absolute deviation

Question 20

It is a summary statistic of statistical dispersion or variability

Answer 20

Mean absolute deviation

Question 21

In simpler terms it means how far are the data points from the mean

Answer 21

Mean absolute deviation

Question 22

This is another way of measuring the spread between numbers in a data set

Answer 22

Variance

Question 23

It measures how far its number in the set is from the mean

Answer 23

Variance

Question 24

It is simply the square root of the variance

Answer 24

Standard deviation

Question 25

It is the most commonly used measure to express dispersion

Answer 25

Standard deviation

Question 26

Are cut points dividing the range of a probability distribution into continuous intervals with equal probability or dividing the observations in a sample in the same way

Answer 26

Quantiles

Question 27

Quantiles

Answer 27

quartiles deciles percentiles

Question 28

Divide or cut the data into four parts

Answer 28

Quartiles

Question 29

Are often used as a measure of spread of the data in what is called interquartile range (IQR)

Answer 29

Quartiles

Question 30

The difference between the third quartile and the first quartile

Answer 30

Interquartile range

Question 31

Is the median of the first half of the data set and marks the point at which 25% of the data values are lower and 75% are higher

Answer 31

First quartile

Question 32

Is the median of the second half of the data set and marks the point at which 25% of the data values are higher and 75% lower

Answer 32

Third quartile

Question 33

cut into 10

Answer 33

deciles

Question 34

divide into 1% segments

Answer 34

percentiles

Question 35

are used for larger data sets

Answer 35

deciles and percentiles

Question 36

It is a way of standardizing scores on the same scale by dividing a scores deviation by the standard deviation in a data set

Answer 36

Standard score (z-score)

Question 37

It measures the number of standard deviations a given data point is from the mean

Answer 37

Standard score

Question 38

What it means if it is a negative z score

Answer 38

value is less than the mean

Question 39

What it means if it is a positive z score

Answer 39

value is greater than the mean

Question 40

It represents the ratio of the standard deviation to the mean and it is a useful statistic for comparing the degree of variation from one data series to another even if the means are drastically different from one another

Answer 40

Coefficient of variation

Question 41

It allows investor to determine how much volatility or risk is assumed in comparison to the amount of return expected from investments

Answer 41

Coefficient of variation

Question 42

Refers to distortion or a symmetry in a symmetrical bell curve or normal distribution in a set of data

Answer 42

Skewness

Question 43

What it means if it is a positive skew

Answer 43

The mean is greater than the median

Question 44

What it means if it is a negative skew

Answer 44

The mean is less than the median

Question 45

It is a statistical measure that expresses the extent to which two variables are linearly related

Answer 45

Correlation

Question 46

It is a common tool for describing simple relationships without making a statement about cause and effect

Answer 46

Correlation

Question 47

Correlation coefficient of positive one indicates a

Answer 47

perfect positive correlation or direct relationship

Question 48

Correlation coefficient of negative 1 indicates a

Answer 48

Perfect negative correlation or inverse relationships

Question 49

Correlation coefficient near zero indicates a

Answer 49

No correlation