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OVERVIEW OF THE STATISTICS COMPONENT OF FINANCE (QUANTITATIVE TECHNIQUES) 203

Note: The ‘statistics’ component of the unit covers Topics 1, 2, 4, 5, 6, 7, 8, 10 and 11 only and will not cover all the concepts in these Topics. The following is an overview of what is required in each topic. You are recommended to do the quiz questions as shown and the tutorial questions.

Week 1 (Descriptive Statistics)

Concepts • Population vs. sample • Parameter vs. statistic and use of correct symbols • Types of data (nominal, ordinal, interval) • Displaying data: Nominal: Bar and pie charts Interval: Stem and leaf displays, histograms, ogives, box and whisker plots • Measures of central location (mean, median, mode) • Measures of dispersion/spread (standard deviation, variance)

Do 1.7.3 Quiz
Can attempt all 1.7.4 Topic Questions

Week 2 (Sampling, Probability, Normal Distribution)

Sampling Concepts

• Types of sampling plans (simple random sampling, stratified random sampling, cluster sampling

Probability Concepts • From a table of joint probabilities answer such questions as: P(A and B) P(A or B) P(A)|B Determine if events A and B are mutually exclusive or not Determine if events A and B are independent or not

The Normal Distribution
Question gives a population mean and population standard deviation for a normally distributed variable and asks such questions as: • P(X > or ≥ a value of the variable) • P(X < or ≤ a value of the variable) • P(a value of the variable ≤ X ≤ a value of the variable)

The formula for the normal distribution is:

[pic]

Do 2.7.2 Quiz
Attempt Do all 2.7.3 Topic Questions except 7, 9, 12, 16, 19, 20, 21.
Do 4.7.1 Quiz except 1
Attempt 4.7.2

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