basically says that for non-normal data, the distribution of the sample means has an approximate normal distribution, no matter what the distribution of the original data looks like, as long as the sample size is large enough (usually at least 30) and all samples have the same size. And it doesn’t just apply to the sample mean; the CLT is also true for other sample statistics, such as the sample proportion. Because statisticians know so much about the normal distribution, these analyses are much easier
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probability distribution graph that showed time in weeks on the x axis from 0 to 6 with a y value of 0.33 where x = 6. The graph looked something like this: From that information, I calculated that area under the line to ensure that this could be considered a continuous distribution function. For this to be true, the area under the curve must equal 1. The calculation looks like this ½bh = ½*1/3*6 =1/6*6/1 or 1. Since we determined this is a continuous probability distribution function (CDF)
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Chapter 1: Introduction – Defining the Role of Statistics in Business • Statistical Analysis: helps extract information from data and provides an indication of the quality of that information • Data mining: combines statistical methods with computer science & optimization in order to help businesses make the best use of the information contained in large data sets • Probability: helps you understand risky and random events and provides a way of evaluating the likelihood of various potential
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Standard deviation is key to predicting price volatility Wednesday, December 03 - 2008 at 12:10 Prices move up and down; all the time. Sometimes a little, but every now and then by large amounts. The measurement for these movements is called volatility, and is measured using standard deviation. Volatility is the most important price driver of option premiums. We are interested in future volatility. However, this is the only kind of volatility that we cannot know. We are able to calculate
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assumptions and the strengths and weaknesses of your data. Continuous Distribution As a first cut, you might ask someone familiar with the asset to give a best possible gain and a worst possible loss. Say the numbers you get are -8% (loss) and 12% (gain). Remember that you believe the mean return is 2%. If you assume that each of the outcomes between -8% and 12% are equally likely, you can draw a uniform distribution like below: Now you can answer the questions posed at the start. The
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Macy’s is one of the nation’s premier retailers but a problem has occurred with their inventory of winter apparel. The winter is near and the store knows that an influx of customers will be coming in to purchase winter apparel for their families for the winter season. The manager looked over the inventory and realized that there is a shortage in winter coats again. Macys has a recurring issue in regard to the shortage in inventory because of the department assuming how many coats they would need
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check the top two box data tap data analysis at right data analysis plus Statistical terms What is statistics? A way to get info from data. descriptive statistics: organize and summarize data inferential statistics: process of making a: prediction estimate decision About a population based on sample data Population: all items of interest Sample: a subset of a population Population: all items of interest Measures of reliability: built into statistical processes (p5) two kinds: confidence
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TEACHING BRIEF Spreadsheet Modeling of (Q, R) Inventory Policies Barry R. Cobb Department of Economics and Business, Virginia Military Institute, Lexington, VA 24450, email: cobbbr@vmi.edu, phone: (540)-464-7452. Abstract This teaching brief describes a method for finding an approximately optimal combination of order quantity and reorder point in a continuous review inventory model using a discrete expected shortage calculation. The technique is an alternative to a model where expected shortage
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Introduction to Statistics QTM403 Basic Information Program | BBA 3 (Hons.) | Semester | Fall 2015 | Credit Hours | 3 | Pre requisites (if any) | Mathematics | Resource Person | Iftikhar Hussain | Contact information | ihgrw85@gmail.com | Course Description: Important decisions are rarely made by intuition alone. We need to use the data to develop our insights and to support our analysis. Quantitative analysis includes the tools and techniques with
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Week 1 homework chapter 1 1. we have: Cf= 55000, cv= 8, p= 21; v= 10 000 a. Total cost TC = cf + v*cv TC= 55000+ 10000*8 TC= $135000 Total revenue TR= v*p TR= 10000*21 TR=$ 21000 Profit Profit= TR-TC Profit= TR-TC P= 21000-135000 P= $ -114 000 b.Break even volume, V= cf/ (p- cv) V= 55000/ (21- 8) V= 4230.77 recap tires, 2. monthly break even volume V= cf/ (p- cv)
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