Quantiles and Related Visualizations
Quantiles Quartiles, quintiles, deciles, and percentiles are values or cut points that partition a finite number of observations into nearly equal-sized subsets. The number of partitions depends on the type of cut point involved.
Summarizing Data Using Frequency Distributions
Frequency Distribution A frequency distribution refers to the presentation of statistical data in a tabular format to simplify data analysis. In a frequency distribution, data is subdivided into groups or intervals. The standard procedure for constructing a frequency distribution involves…
Data Types
This reading will teach you the tools and techniques used to organize, visualize, and describe data. In addition, you will learn how to convert data into useful information that analysts can use to make important investment decisions. Data Types Data…
Hypothesis Test on Correlation
Intuitively, if the correlation coefficient between two variables is zero, then there is no linear relationship between the variables. Otherwise, if we use the test of significance to determine whether there is a linear relationship, we will be inclined to…
Introduction to Probability Distributions, Probability Functions, and Types of Variables
Probability Distribution The probability distribution of a random variable “X” is basically a graphical presentation of the probabilities of all possible outcomes of X. A random variable is any quantity for which more than one value is possible. An example…
Solving Counting Problems through Labeling, Factorial Notations, Combinations, and Permutations
Counting problems involve determination of the exact number of ways two or more operations or events can be performed together. For instance, we might be interested in the number of ways to choose 7 chartered analysts comprising 3 women and…
Cumulative Distribution Function (CDF)
A cumulative distribution function, F(x), gives the probability that the random variable X is less than or equal to x: $$ P(X ≤ x) $$ By analogy, this concept is very similar to the cumulative relative frequency.
Discrete Random Variables and Outcomes
A discrete random variable can take on a finite or countable number of values. It is a random variable where it is possible to list all the outcomes. Recall that a random variable is just a quantity whose future outcomes…
Calculating Probabilities Given the Discrete Uniform and the Binomial Distribution Functions
We can calculate and interpret probabilities of random variables that assume either the uniform distribution or the binomial distribution.
