Free Essay

Business Statistics

In: Business and Management

Submitted By lia123
Words 400
Pages 2
Aliyah Shubrick
Business Statistics BE220A
3/20/2013
Assignment 7

1. What is a random sample?
- Random sampling is a group of subjects randomly selected from a larger group (population) randomly without a bias and influence by the information you are interested in.
2. Why does randomly selecting a number between one and zero help in creating a random sample from a cdf?
- A cumulative density function range from zero to one. By selecting a number between zero and one will help create your random sample. Zero to one is the population and if I pick random number like: 0.2, 0.5, and 0.8, these values will become the random sample for a cdf.

3. What is the difference between a discrete and a continuous distribution?
-Discrete distribution contains discrete variables where there are infinite numbers of values possible. Such as yes or no questions
-Continuous distribution is an infinite probability distribution used to find probability for a continuous range of values.

4. What is the link between a binomial distribution and a hypergeometric distribution? If we were looking at data, when would we expect the data to follow a binomial distribution rather than a hypergeometric distribution?
- A binomial distribution is the number of successes and number of games played with replacement. Hypergeometric has the same concept just without replacement. When looking at the number of wins in a baseball game it is better to follow binomial distribution than hypergeometric because game one will not affect the result of game two. If we are trying to find the probability of picking and ace out of a deck of 52 cards, we will use hypergeometric distribution. In general, each time you pick a card it is not placed back into the deck.

5. Read the article \Dubious Statistics" Why does Nate Silver consider the statistics used dubious? Do you agree? Nate Silver considered the statistics used as dubious because Chief Justice Roberts failed to acknowledge the margin of error when presenting statistical data from 2004. His data was basically misconstrued; therefore, his conclusions were misleading. The data was subject to a lot of errors such as sampling error, and measurement error. I agree with Nate Silver; you cannot present data with recognizing and understanding the margin of error. You have to be careful of bias, sampling error, and measurement error because your data will not depict the truth.

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