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Statistics By Jim

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Principal Component Analysis Guide & Example

By Jim Frost Leave a Comment

What is Principal Component Analysis?

Principal Component Analysis (PCA) takes a large data set with many variables per observation and reduces them to a smaller set of summary indices. These indices retain most of the information in the original set of variables. Analysts refer to these new values as principal components. [Read more…] about Principal Component Analysis Guide & Example

Filed Under: Basics Tagged With: analysis example, choosing analysis, conceptual, interpreting results, multivariate

Fishers Exact Test: Using & Interpreting

By Jim Frost Leave a Comment

Fishers exact test determines whether a statistically significant association exists between two categorical variables.

For example, does a relationship exist between gender (Male/Female) and voting Yes or No on a referendum? [Read more…] about Fishers Exact Test: Using & Interpreting

Filed Under: Hypothesis Testing Tagged With: analysis example, choosing analysis

Z Test: Uses, Formula & Examples

By Jim Frost Leave a Comment

What is a Z Test?

Use a Z test when you need to compare group means. Use the 1-sample analysis to determine whether a population mean is different from a hypothesized value. Or use the 2-sample version to determine whether two population means differ. [Read more…] about Z Test: Uses, Formula & Examples

Filed Under: Hypothesis Testing Tagged With: analysis example, assumptions, choosing analysis, interpreting results

Paired T Test: Definition & When to Use It

By Jim Frost 5 Comments

What is a Paired T Test?

Use a paired t-test when each subject has a pair of measurements, such as a before and after score. A paired t-test determines whether the mean change for these pairs is significantly different from zero. This test is an inferential statistics procedure because it uses samples to draw conclusions about populations.

Paired t tests are also known as a paired sample t-test or a dependent samples t test. These names reflect the fact that the two samples are paired or dependent because they contain the same subjects. Conversely, an independent samples t test contains different subjects in the two samples. [Read more…] about Paired T Test: Definition & When to Use It

Filed Under: Hypothesis Testing Tagged With: analysis example, assumptions, choosing analysis, interpreting results

Independent Samples T Test: Definition, Using & Interpreting

By Jim Frost 3 Comments

What is an Independent Samples T Test?

Use an independent samples t test when you want to compare the means of precisely two groups—no more and no less! Typically, you perform this test to determine whether two population means are different. This procedure is an inferential statistical hypothesis test, meaning it uses samples to draw conclusions about populations. The independent samples t test is also known as the two sample t test. [Read more…] about Independent Samples T Test: Definition, Using & Interpreting

Filed Under: Hypothesis Testing Tagged With: analysis example, assumptions, choosing analysis, interpreting results

Mean Absolute Deviation: Definition, Finding & Formula

By Jim Frost 4 Comments

What is the Mean Absolute Deviation?

The mean absolute deviation (MAD) is a measure of variability that indicates the average distance between observations and their mean. MAD uses the original units of the data, which simplifies interpretation. Larger values signify that the data points spread out further from the average. Conversely, lower values correspond to data points bunching closer to it. The mean absolute deviation is also known as the mean deviation and average absolute deviation. [Read more…] about Mean Absolute Deviation: Definition, Finding & Formula

Filed Under: Basics Tagged With: choosing analysis, conceptual, distributions

Stem and Leaf Plot: Making, Reading & Examples

By Jim Frost 2 Comments

What is a Stem and Leaf Plot?

Stem and leaf plots display the shape and spread of a continuous data distribution. These graphs are similar to histograms, but instead of using bars, they show digits. It’s a particularly valuable tool during exploratory data analysis. They can help you identify the central tendency, variability, skewness of your distribution, and outliers. Stem and leaf plots are also known as stemplots. [Read more…] about Stem and Leaf Plot: Making, Reading & Examples

Filed Under: Graphs Tagged With: choosing analysis, distributions, interpreting results

Pareto Chart: Making, Reading & Examples

By Jim Frost Leave a Comment

What is a Pareto Chart?

A Pareto chart is a specialized bar chart that displays categories in descending order and a line chart representing the cumulative amount. The chart effectively communicates the categories that contribute the most to the total. Frequently, quality analysts use Pareto charts to identify the most common types of defects or other problems.

Learn how to use and read Pareto charts and understand the Pareto principle and the 80/20 rule that are behind it. I’ll also show you how to create them using Excel. [Read more…] about Pareto Chart: Making, Reading & Examples

Filed Under: Graphs Tagged With: choosing analysis, data types, interpreting results, quality improvement

Venn Diagrams: Uses, Examples, and Making

By Jim Frost Leave a Comment

Venn diagrams visually represent relationships between concepts. They use circles to display similarities and differences between sets of ideas, traits, or items. Intersections indicate that the groups have common elements. Non-overlapping areas represent traits that are unique to one set. Venn diagrams are also known as logic diagrams and set diagrams. [Read more…] about Venn Diagrams: Uses, Examples, and Making

Filed Under: Graphs Tagged With: choosing analysis, conceptual, Excel

Scatterplots: Using, Examples, and Interpreting

By Jim Frost 4 Comments

Use scatterplots to show relationships between pairs of continuous variables. These graphs display symbols at the X, Y coordinates of the data points for the paired variables. Scatterplots are also known as scattergrams and scatter charts. [Read more…] about Scatterplots: Using, Examples, and Interpreting

Filed Under: Graphs Tagged With: analysis example, choosing analysis, data types, interpreting results

Pie Charts: Using, Examples, and Interpreting

By Jim Frost Leave a Comment

Use pie charts to compare the sizes of categories to the entire dataset. To create a pie chart, you must have a categorical variable that divides your data into groups. These graphs consist of a circle (i.e., the pie) with slices representing subgroups. The size of each slice is proportional to the relative size of each category out of the whole. [Read more…] about Pie Charts: Using, Examples, and Interpreting

Filed Under: Graphs Tagged With: analysis example, choosing analysis, data types, interpreting results

Bar Charts: Using, Examples, and Interpreting

By Jim Frost 4 Comments

Use bar charts to compare categories when you have at least one categorical or discrete variable. Each bar represents a summary value for one discrete level, where longer bars indicate higher values. Types of summary values include counts, sums, means, and standard deviations. Bar charts are also known as bar graphs. [Read more…] about Bar Charts: Using, Examples, and Interpreting

Filed Under: Graphs Tagged With: analysis example, choosing analysis, data types, interpreting results

Line Charts: Using, Examples, and Interpreting

By Jim Frost 2 Comments

Use line charts to display a series of data points that are connected by lines. Analysts use line charts to emphasize changes in a metric on the vertical Y-axis by another variable on the horizontal X-axis. Often, the X-axis reflects time, but not always. Line charts are also known as line plots. [Read more…] about Line Charts: Using, Examples, and Interpreting

Filed Under: Graphs Tagged With: analysis example, choosing analysis, data types, interpreting results

Dot Plots: Using, Examples, and Interpreting

By Jim Frost Leave a Comment

Use dot plots to display the distribution of your sample data when you have continuous variables. These graphs stack dots along the horizontal X-axis to represent the frequencies of different values. More dots indicate greater frequency. Each dot represents a set number of observations. [Read more…] about Dot Plots: Using, Examples, and Interpreting

Filed Under: Graphs Tagged With: analysis example, choosing analysis, data types, distributions, interpreting results

Empirical Cumulative Distribution Function (CDF) Plots

By Jim Frost Leave a Comment

Use an empirical cumulative distribution function plot to display the data points in your sample from lowest to highest against their percentiles. These graphs require continuous variables and allow you to derive percentiles and other distribution properties. This function is also known as the empirical CDF or ECDF. [Read more…] about Empirical Cumulative Distribution Function (CDF) Plots

Filed Under: Graphs Tagged With: analysis example, choosing analysis, data types, interpreting results

Contour Plots: Using, Examples, and Interpreting

By Jim Frost 1 Comment

Use contour plots to display the relationship between two independent variables and a dependent variable. The graph shows values of the Z variable for combinations of the X and Y variables. The X and Y values are displayed along the X and Y-axes, while contour lines and bands represent the Z value. The contour lines connect combinations of the X and Y variables that produce equal values of Z. [Read more…] about Contour Plots: Using, Examples, and Interpreting

Filed Under: Graphs Tagged With: choosing analysis, data types, interpreting results

Using Combinations to Calculate Probabilities

By Jim Frost 6 Comments

Combinations in probability theory and other areas of mathematics refer to a sequence of outcomes where the order does not matter. For example, when you’re ordering a pizza, it doesn’t matter whether you order it with ham, mushrooms, and olives or olives, mushrooms, and ham. You’re getting the same pizza! [Read more…] about Using Combinations to Calculate Probabilities

Filed Under: Probability Tagged With: analysis example, choosing analysis, conceptual

Chebyshev’s Theorem in Statistics

By Jim Frost 17 Comments

Chebyshev’s Theorem estimates the minimum proportion of observations that fall within a specified number of standard deviations from the mean. This theorem applies to a broad range of probability distributions. Chebyshev’s Theorem is also known as Chebyshev’s Inequality. [Read more…] about Chebyshev’s Theorem in Statistics

Filed Under: Basics Tagged With: choosing analysis, distributions, probability

Using Permutations to Calculate Probabilities

By Jim Frost 8 Comments

Permutations in probability theory and other branches of mathematics refer to sequences of outcomes where the order matters. For example, 9-6-8-4 is a permutation of a four-digit PIN because the order of numbers is crucial. When calculating probabilities, it’s frequently necessary to calculate the number of possible permutations to determine an event’s probability.

In this post, I explain permutations and show how to calculate the number of permutations both with repetition and without repetition. Finally, we’ll work through a step-by-step example problem that uses permutations to calculate a probability. [Read more…] about Using Permutations to Calculate Probabilities

Filed Under: Probability Tagged With: analysis example, choosing analysis, conceptual

Spearman’s Correlation Explained

By Jim Frost 45 Comments

Spearman’s correlation in statistics is a nonparametric alternative to Pearson’s correlation. Use Spearman’s correlation for data that follow curvilinear, monotonic relationships and for ordinal data. Statisticians also refer to Spearman’s rank order correlation coefficient as Spearman’s ρ (rho).

In this post, I’ll cover what all that means so you know when and why you should use Spearman’s correlation instead of the more common Pearson’s correlation. [Read more…] about Spearman’s Correlation Explained

Filed Under: Basics Tagged With: analysis example, choosing analysis, conceptual, data types, Excel, graphs

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