Week3 Stats
Week3 Stats
Week3 Stats
Normal distribution
Skewness & Kurtosis Both these metrics can be used
check deviation of a given
distribution from normality of
distribution
>3
=3
<3
Skewness indicates how the overall shape of a distribution Kurtosis indicates how the tails of a distribution is shaped
deviates from normal distribution/ symmetric >3, thinner tail
>0, right skewed <3, thicker tail
<0, left skewed
central limit theorem
Central limit Theorem
• Population: {18,20,21,23,26,27,30,35,41,45}
• Age of 10 people
• Sample size 3
• Random sample
• {18,23,30} Average: 23.66
• {21,27,41}29.66
frequency
• {20,35,45}33.33 N=7
• {35,41,45}40.33
• | N=3
• |
• | 28.6
Number of trials
Average of the samples
N>30
Central Limit Theorem
• The mean of the sampling distribution of means is equal to the mean
of the population from which the samples were drawn.
• The variance of the sampling distribution of means is equal to the
variance of the population from which the samples were drawn
divided by the size of the samples.
• If the original population is distributed normal (i.e. it is bell shaped),
the sampling distribution of means will also be normal. If the original
population is not normally distributed, the sampling distribution of
means will increasingly approximate a normal distribution as sample
size increases (i.e. when increasingly large samples are drawn).
Actual distribution Sampling distribution
How is this useful
• In reality estimating population statistics is hard large size
• A new drug in the market helps reduce the side effects of Diabetes by 50%
• The effect may not be same for all the members of the sample
a=b ab
ab a>b
ab a<b
Hypothesis testing: example-1
• Premise: the average IQ of students admitted to a city college ‘X’ is at best
120. The new administration in the college thinks that its current students
are much smarter
Hypothesis testing: example-1
• Premise: the average IQ of students admitted to a city college ‘X’ is at best
120. The new administration in the college thinks that its current students
are much smarter
Type II Error:
• Failure to reject the null hypothesis, when it should have been rejected.
• Incorrectly not rejecting the null hypothesis.
Decision/ Reality Ho True (Should not reject) Ho False (Should reject)
• C+ =1
Two tail and One tail test
• Ho:a=b
• Ha: ab
• =0.05
• Ho:ab
• Ho:ab
• Ha: a>b
• Ha: a<b
• =0.05
• =0.05
21
Problem-1
• The school nurse thinks the average height of 7th graders has increased. The
average height of a 7th grader five years ago was 145 cm with a standard
deviation of 20 cm. She takes a random sample of 200 students and finds that the
average height of her sample is 147 cm. Are 7th graders now taller than they
were before? Conduct a X-tailed hypothesis test use a .05 significance level to
evaluate the null and alternative hypotheses.
• Ho:
• Ha:
• Confidence level:
• Test metric:
• Tail: one tail/two tail?
• Sample size:
Problem-1
• The school nurse thinks the average height of 7th graders has increased. The
average height of a 7th grader five years ago was 145 cm with a standard
deviation of 20 cm. She takes a random sample of 200 students and finds that the
average height of her sample is 147 cm. Are 7th graders now taller than they
were before? Conduct a X-tailed hypothesis test use a .05 significance level to
evaluate the null and alternative hypotheses.