A Statistical Perspective on Data Mining Ranjan Maitra∗ Abstract Technological advances have led to new and automated data collection methods. Datasets once at a premium are often plentiful nowadays and sometimes indeed massive. A new breed of challenges are thus presented – primary among them is the need for methodology to analyze such masses of data with a view to understanding complex phenomena and relationships. Such capability is provided by data mining which combines core statistical techniques
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6) 1. Is the return on the one-year T-bill risk free? No, the return on the one-year T-bill is not risk free. Financial risk is related to the probability of earning a return less than expected and the larger the chance of earning a return far below that expected, the greater the amount of financial risk. Risk free assumes 100% probability that the investment will earn the total percent of return that is expected. 2. Calculate the expected rate of return on each of the five investment
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EXCEL FORMULA SHEET DISTRIBTIONS Binomial Distributions For an EXACT probability =BINOMDIST(x,n,p,false) For less than or equal to x (at most x) =BINOMDIST(x, n, p, true) For less than x =BINOMDIST((x-1), n, p, true) For greater than x =1-BINOMDIST(x, n, p, true) For greater than or equal to x (at least x) =1-BINOMDIST((x-1), n, p, true) Normal Distributions To find the probability of a z-score (instead of using the Standard Normal Table!!) =NORMSDIST(z) * (used for P(z < ?)) =1-NORMSDIST(z)
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coffee through designated collection windows. Additionally, to have a better quantitative understanding of the arrival rate with regards to the queuing theory, a discrete Poisson distribution can be established by the following: x: 3 P(x)= Probability of 3 arrivals = 14.037% y: 5 e:2.71828 Furthermore, another waiting-line characteristic with respect of the queuing discipline. ILC uses a first-in, first-out (FIFO) rule, with a basic queuing system design that involves a single-phase queuing
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price, we try to calculate the expected return for licensing the Davanrik. In the second question, we built the decision tree that shows the cash flow and probabilities at all stages of the FDA approval process. We then calculate the expected return using the above decision tree by multiplying the possible proceeds with the according probability and minus the associated trial costs. (See
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Practice 5 Problem 7 (Conditional probability, Bayes` rule). Radar detection. If an aircraft is present in a certain area, a radar correctly registers its presence with probability 0.99. If it is not present, the radar falsely registers an aircraft presence with probability 0.10. We assume that an aircraft is present with probability 0.05. What is the probability of false alarm (a false indication of aircraft presence), and the probability of missed detection (nothing registers, even though an
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the president by lottery. a. What is the probability one of the minority candidates is hired? (Round your answer to 1 decimal place.) b. Which concept of probability did you use to make this estimate? Chapter 5 Exercise 14 The chair of the board of directors says, "There is a 50% chance this company will earn a profit, a 30% chance it will break even, and a 20% chance it will lose money next quarter." a. Use an addition rule to find the probability the company will not lose money next quarter
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By the way, parametric distribution means normal, binomial distribution etc.. Probability Distribution A listing of all the outcomes of an experiment and the probability associated with each outcome. Mean of probability Distribution μ= Σ[xP(x) Variance of probability Distribution σ2= Σ[x-μ2Px] Number of Cars (x) | Probability (x) | (x-μ) | (x-μ)2 | x-μ2P(x) | 0 | 0.1 | 0 – 2.1 | 4.41 | 0.441 (4.41*0.1) | 1 | 0.2 | 1 – 2.1 | 1.21 | 0.242 | 2 | 0.3 | 2 – 2.1 | 0.01 | 0.003 |
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V(X) Which of the following statements is always correct? P(A and B) = P(A) * P(B) P(A or B) = P(A) + P(B) P(A or B) = P(A) + P(B) + P(A and B) P[pic]= 1- P(A) An experiment consists of tossing an unbiased coin three times. Drawing a probability tree for this experiment will show that the number of simple events in this experiment is 8 Use the following information to answer questions 6 and 7: The weights of newborn children in the United States vary according to a normal distribution
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If there are images in this attachment, they will not be displayed. Download the original attachment Real Foods One way ANOVA Steps involved in a statistic test 1. Background information 2. Assumptions : method of Sampling, dependent or independent variables, scale of measurement, and sample size 3. State the Hypothesis * Error types: false positive- reject a true null and false negative: fails to reject a false null hypothesis * A statistical test
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