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Business Statistics (Clockwise Starts at 9 o'clock) - Coggle Diagram
Business Statistics
(Clockwise Starts at 9 o'clock)
Module 2
Different Standard Deviations (Sigmas)
Note: We use mean minus sigma to define ranges on the normal curve this implies that the units of sigma and the mean are the same. Note also that variance and standard deviation are always positive since the standard deviation is the square root of variance.
Binomial Simulation Defective =BINOM.DIST(trial, mean, standard deviation,
Three Methods For Calculating the Sum of Probabilities Up To The Fourth Defective Part
=COUNTIF(M:M, 1/1000)
Rent Apartment
=IF(RAND()<=0.9,1000, -100) is essentially saying if a number is between 0 and 1 and the number randomly chosen is less than 0.9 there is a 90% chance of this happening. If yes that is if it is less than 0.9 then output 1000 and if not output -100
For standard deviation the equation should make sense we are finding the deviation per value from the mean and then squaring it. We square it because that allows us to not have to worry about negative numbers. Then we multiple the respective probabilities for those values and sum them all up. then we calculate the square root because we are undoing what we just did with the square.
Scenario for which we have a 90% chance of getting 1000 payoff and a 10% of losing 100 with an expected value of 890. Our standard deviation is sqrt (0.9 x (1000-890)^2 + 0.1(-100-890)^2). The units of variance is squared units. This is different from the mean or expected value which is (0.9 x 1000) + (0.1 x -100). We can use =SUMPRODUCT(B2:B3, C2:C3) to find mean or expected value. We can also use =sqrt(SUMPRODUCT((B2:B3-E2)^2, C2:C3) to find the standard deviation.
Generating Random Njumbers
=IF(RAND() <= 0.9, 1000, -100) is dynamically expressing the Bernoulli Distriution
DIFFERENCE BETWEEN SAMPLE AND POPULATION??
standard deviation I can use STDEV.P or STDEV.S
we can define covariance in terms of standard deviations and correlation butr also in terms of expected values/averages where the covariance of a set of bivariate data is E[X, Y] = E[X
Y] - E[X]
E[Y]
array in excel is a column or set of data. We say population if the data we are highlighting is a subset of entire (sample) or the population is the entirety of the data. The difference at large number of data set
Module 1
Business Statistics Strategy
Throughout the Week Refer Back to this Spreadsheet. Do Not Waste Time Re Watching Lecture. Only Intentionally Refer Back To Specific Parts. Build Concept Map of Equations and Functions For Each Concept.
The Weekend Study The Textbook Videos and Complete The Application From The Textbook.
Save the Document to Desktop
During Lecture Duplicate What He Does on the Excel Spreadsheet in Real Time. Timestamp Concepts That Were Unclear During Lecture.
Allocate 20 Minutes of Time to Study Lecture Slides on Monday before Tuesday's Lecture and Allocate 20 Minutes of Time to Study Lectures Slides on Wednesday before Thursday's Lecture. Scan The Excel Spreadsheet Template For Basic Exposure to Applications. Save To Desktop. Begin Building Concept Map For The Week.