Quantitative Methods - Statistics Flashcards
(42 cards)
What is the floor with being a decision maker?
In nearly all instances, there is information asymmetry.
What is probability theory?
Probability theory allows decision makers to assess risks and benefits associated with different decisions.
What is inference?
A conclusion based on evidence,
What is statistical inference?
The drawing of conclusions from a sample of data.
What is the frequentist view?
The proportion of trials in which the event occurs, calculated as if the number of trials approaches infinity.
What is the subjective view?
Someone’s degree of belief about the likelihood of an event occurring.
How would you work out the probability of head that come up on the toss of the coin? *as the number of trials approaches infinity.
Pr(H) = Number of heads/ number of trials.
What is empirical evidence?
Derived from or guided by experience or experiment.
What is an experiment?
An activity such as tossing a coin, which has a range of possible outcomes or events.
What is a trial?
A single performance of an experiment?
What is the sample space?
All possible outcomes of an experiment.
For tossing a coin, the sample space would be {heads, tails}.
What are the two different types of statistics>
Descriptive and inferential.
What is descriptive statistics?
Summarises a mass of information. E.g. Bar charts and pie charts.
We can use graphical and/or numerical methods. e.g. averages and standard deviations
What is inferential statistics?
Methods used to make estimates and predictions about a population on the basis of a sample taken from the population.
What is the difference between population and sample with respect to statistics?
Population include the whole group of interest whilst sample included only part of the whole group.
What is the purpose of descriptive statistics?
To present information in a clear, concise and accurate manner.
What are the key attributes of quantitative measures?
- Numerical
- Can be measured
- Can be ordered
What are the key attributes of qualitative measures?
- Nonnumerical
- Categorical
- Describe quality of something.
What are the three different levels of measurement?
- Nominal level data.
- Ordinal level data.
- Ratio level data.
What is nominal data?
Only classified and counted.
What is ordinal data?
Classified, counted, but order matter.
What is ratio level data?
Ratios have meanings, zero means absence of chahracteristics.
What is the general rule of thumb for knowing how many class intervals there should be on a frequency table?
The square root of the number of observations.
Formula for frequency density of a histogram?
Frequency density =
Frequency/ Class width
