Business Statistics Exam 2 Terms Flashcards
A numerical value used as a summary measure for a population
Population Parameter
A numerical value used as a summary measure for a sample
Sample Statistic
A sample statistic used to estimate the corresponding population parameter
Point Estimator
A measure of central location computed by summing the data values and dividing by the number of observations
Mean
A measure of central location provided by the value in the middle when the data are arranged in ascending order
Median
A measure of location, defined as the value that occurs with greatest frequency
Mode
The mean obtained by assigning each observation a weight that reflects its importance
Weighted Mean
A measure of location that is calculated by finding the nth root of the product of n values
Geometric Mean
A measure of location that is calculated by removing a percentage of the smallest and largest values from a data set, then calculating the average of remaining values
Trimmed Mean
A value such that at least p percent of the observations are less than or equal to this value and at least (100 - p) percent of the observations are greater than or equal
percentile
The 25th, 50th, and 75th percentiles, which can be used to divide a data set into four parts, with each part containing approximately 25% of the data
Quartiles
A measure of variability, defined to be the largest value minus the smallest value
Range
A measure of variability, defined to be the difference between the third and first quartiles
Interquartile Range
A technique that used the smallest value, first quartile, median, third quartile, and largest value to summarize the data set
Five-number summar
A graphical summary of data based on a five=number summary
Boxplot
A measure of variability based on the squared deviations (differences) of the data values about the mean
Variance
A measure of variability computed by taking the positive square root of the variance
Standard Deviation
A measure of relative variability computed by dividing the standard deviation by the mean and multiplying by 100
Coefficient of Variation
A value computed by dividing the deviation (difference) of a data value from the mean by the standard deviation. Sometimes this is referred to as a Standard Score
Z-score
An unusually small or unusually large data value
Outlier
A measure of the shape of a data distribution
Skewness
A theorem that can be used to make statements about the proportion of data values that must be within a specified number of standard deviations of the mean
Chebyshev’s Theorem
A rule that can be used to compute the percentage of data values that must be within one, two, and three standard deviations of the mean for data that exhibit a bell-shaped distribution
Empirical Rule
A measure of linear association between two variables. Positive values indicate a positive relationship; negative values indicate a negative relationship
Covariance
A measure of linear association between two variables that takes on values between -1 and +1. Values near +1 indicate a strong positive linear relationship; values near -1 indicate a strong negative linear relationship; and values near zero indicate the lack of a linear relationship
Correlation Coefficient
A price index for a given item that is computed by dividing a current unit price by a base-period unit price and multiplying the result by 100
Price Relative
A composite price index based on the prices of a group of items
Aggregate Price Index
A composite price index in which the prices of the items in the composite are weighted by their relative importance
Weighted Aggregate Price Index
A weighted aggregate price index in which the weight for each item is its current-period quantity
Paasche Index
A weighted aggregate price index in which the weight for each item is its base-period quantity
Lapeyre’s Index
An index designed to measure changes in quantities over time
Quantity Index
A monthly price index that uses the price changes in a market basket of consumer goods and services to measure the changes in consumer prices over time
Consumer Price Index
A monthly price index designed to measure changes in prices of goods sold in primary markets (i.e., first purchase of a commodity in nonretail markets)
Producer Price Index
A quantity index designed to measure changes in the physical volume or production levels of industrial goods over time
Industrial Production Index
Aggregate price indexes designed to show price trends and movements associated with common stocks
Dow Jones Averages
