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Statistics for Business - Chapter 1: Statistics, Data, and Statistical Thinking

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  • What is statistics?

    Statistics is the science of collecting, organizing, analyzing, and interpreting data to make informed decisions.

  • Define population and sample in statistics.

    Population is the entire set of data or all subjects of interest. Sample is a subset of the population used to represent it.

  • What is a parameter versus a statistic?

    A parameter is a numerical value describing a characteristic of a population. A statistic is a numerical value describing a characteristic of a sample.

  • Identify if the average salary of all employees is a parameter or statistic.

    The average salary of all employees is a parameter because it describes the entire population.

  • Identify if the average salary of 12 out of 100 employees is a parameter or statistic.

    The average salary of 12 employees is a statistic because it describes a sample.

  • What are qualitative and quantitative data?

    Qualitative data describe qualities or categories (e.g., eye color). Quantitative data represent numerical quantities (e.g., height, weight).

  • Differentiate between discrete and continuous quantitative data.

    Discrete data are countable and cannot be broken down further (e.g., number of students). Continuous data can take any value within a range (e.g., temperature).

  • Is nationality qualitative or quantitative data?

    Nationality is qualitative data because it describes categories or qualities.

  • Is the distance people walk to work quantitative discrete or continuous data?

    Distance walked is quantitative continuous data because it can take any value within a range.

  • What are the two main ways to collect data?

    Data can be collected by experiments (applying treatments and measuring effects) or observational studies (measuring without intervention).

  • Can causation be assumed in an experiment?

    Yes, experiments allow you to assume causation because treatments are applied and effects measured.

  • Can causation be assumed in an observational study?

    No, observational studies only measure characteristics without intervention, so you cannot assume causation.

  • What is simple random sampling (SRS)?

    Simple random sampling means every subject and every possible group has an equal chance of being selected.

  • What is a representative sample?

    A representative sample has the same proportions of characteristics as the original population.

  • Describe systematic sampling.

    Systematic sampling selects every k-th subject from the population (e.g., every 12th cookie).

  • Describe cluster sampling.

    Cluster sampling divides the population into groups (clusters), then randomly selects entire clusters for the sample.

  • Describe stratified sampling.

    Stratified sampling divides the population into strata with similar characteristics, then randomly samples from each stratum.

  • Is randomly selecting 3 marbles from a bag a simple random sample?

    Yes, if every marble and group of marbles has an equal chance of selection, it is a simple random sample.

  • Is surveying all customers in a grocery store a population or sample?

    Surveying all customers is a population data set because it includes every individual.

  • What sampling method is selecting every tenth unit produced on a line?

    This is an example of systematic sampling, selecting every k-th unit.