C207 Flashcards
There are two types of statistics
(Analytics)
Descriptive and Inferential
Descriptive statistics are used to ______.
Inform / Explanatory
Past Data
Inferential statistics are used to ______.
Predict / Trend
Name the 4 levels of measurement.
Nominal, Ordinal, Interval, Ratio
Continuous data with unique zero-point
Ratio
Orders data at equal distance apart
Interval
Place qualitative objects in some kind of
order
Ordinal
Identify, Group, or Categorize
Names/Labels
Nominal
Outliers create this type of error
Out-of-Range
Unpredictable error?
Random Error – No correlation
Error may occur from missing data.
(Example: Space not filled in)
Omission Error – Distorted results
This error repeats itself
Systematic Error – Skewed results
What is the process of quality control?
Reduce/ minimize errors
All variable measurements and
manipulations are under the
researcher’s control
Experimental study
Used when impractical or impossible to control the conditions of the study
Observational study
Participants are not told if they are in the treatment group or control group
Blind Study
The procedure the researcher applies to each subject
Treatments
Neither the treatment allocator nor the participants know who is in the
treatment group or control group
Double-blind study
Questions favor an outcome or the
interviewer asks questions that favor an outcome.
Information Bias
The average outcome (payoff) when the future includes scenarios that may or may not happen
Expected Monetary Value (EMV)
Observation points that are distant from other observations.
Outliers
Note: Can be included or excluded in analysis (causes skewness)
Bias that occurs from not selecting a random sample
Measurement bias
Bias introduced because respondents believe it will be beneficial if selected.
Conscious bias
Each of the four quartile groups a population can be divided into?
Quartiles
Measures the difference between the third and first quartile.
Q3 - Q1
IQR: Inter-quartile range
Note: Must be ordered in lowest to highest value
A chart used to study the composition of a data set and examine the distribution
Box Plot
There are six toll booths to enter the highway. What probability does each toll booth worker have of getting the next customer?
1 customer and 6 booths =
1/6 or 16.7%
The order you pick your sample in does not matter?
Combination
Picking employees for a shift. Order doesn’t matter.
When given P(A) given P(B), you can use this to find the P(B) given P(A). KEYWORD: GIVEN THAT
Bayes Theorem
You must know P(A), P(B), P(A) given B
Apply this rule when looking for two events occurring. KEYWORDS: AND, ALL, BOTH, EVERY, IN A ROW
Multiplication
Note: Multiply Principle calculates Intercepts
Use this rule when looking for one or the other event happening. KEYWORD: OR, EITHER, OTHER
Addition
Note: Addition Principle calculates a Union
A technique for minimize total cost or maximize profit based on constraints.
KEYWORD: Product Mix; Minimize; Maximize; Optimize
Linear programming
A technique using a single independent variable to predict a single dependent variable. KEYWORD: relationship; correlation; R-squared; scatter plot; Predict; Trend
Linear regression
A technique using more than one
independent variable to predict a single dependent variable
Multiple regression
Measures the strength of a linear
relationship
Correlation coefficient
Measures the goodness of fit in a
regression analysis.
KEYWORD: Goodness of Fit; 0 Weak Fit; 1 Strong Fit.
R-Square
A simple regression using time as the independent variable.
KEYWORD: Time
Time series
A general slope upward or downward over a period of time
Trend
Unforeseen circumstances causing
random deviations
Irregularity
Repetition in up and down patterns
Cyclicality
Regular pattern within a single year
Seasonality
Represents the probability that a variable falls with a certain range
Cumulative distribution
A list of all the different probabilities of each outcome that can occur
Probability Distribution
Measures of central tendency are
approximately equal (Mean and Median)
Normal Distribution
Used to compare the mean of three or more groups. KEYWORD: Compare, Average, 3
ANOVA
What test statistic does ANOVA use?
F-value
must be higher than critical value to reject the null
T-test uses this test statistic. KEYWORD: 2, Average
T-value
must be higher than critical value to reject the null
A correlation is weak if the coefficient is close to ____.
Zero
A correlation is strong if the coefficient is close to ____.
1 or -1
A chart that Illustrates performance measurements over a period of time
Run Chart
A chart that Illustrates limits or constraints a process should not exceed. KEYWORD: In limits
Control Chart
Assists in brainstorming issues that are causing a problem. KEYWORD: Process Identification (Why)
Cause and Effect Diagram
A charts that uses a visual tool to understand a process. KEYWORD: Process Identification (Where)
Flowchart
Easy tool to collect data to create other charts
Check Sheet
Graphical display of a data set with one bar for each category
Histogram and Pareto
A chart that has a Graphical display of data set centered. KEYWORD: Distribution (Centered)
Histogram
Graphical display of data set in highest to lowest order. KEYWORD: Distribution (Highest to lowest)
Pareto
A chart used for potential relationships and correlation between variables
KEYWORD: Relationship
Scatter diagram
Can the seven tools be used independently?
Yes
What percent of quality problems does Ishikawa claim the seven tools can solve?
90% - 95%
Diagram demonstrating all of the
elements that can influence a process before it starts.
SIPOC (Supplier – Input – Process – Output – Customer)
Manufacturing approach to improving processes.
Six Sigma
In manufacturing, statistics is used for:
Quality Control
Plan - Do – Study – Act
Which step is a response to analytical results?
Act
Shows whether a result meets a
requirement or not
Attribute
Shows how well a result meets the
requirement
Variable
Variations accepted as the normal part of the process
Common cause variation
Variation from an abnormality causing large discrepancy in results
Special cause variation
Model of designing, analyzing, and
scoring tests
IRT: Item Response Theory
How does the government differ than private sector cost-benefit analysis?
Government benefits aren’t always
money. Could be flood prevention or welfare.
Compares one individual’s performance to other individuals
Norm Referenced
Compare individual’s performance to a standard score (Example: Cut Score 64%)
Criterion referenced
Management strategy that uses results as the central measurement of performance
RBM: Results Based Management
What is Big Data?
Very large data sets
Used to count ALL of the existing cases in a disease.
Prevalence
Used to count only the NEW cases of a disease. KEYWORD: new case.
Incidence (Incident rate)
Used to analyze if funding is worth the outcome of a project
Cost-benefit analysis
Performance measure for one specific goal. KEYWORD: Performance
KPI – Key performance indicator
What does a balanced scorecard measure?
CLIF – (customer, learning, internal
process, financial performance) Are we meeting the strategy?
Advantage or Disadvantage of balanced score card? Requires time and effort to establish a meaningful scorecard l scorecard
Disadvantage
Advantage or Disadvantage of balanced score card? Improves Internal and External Communication
Advantage
Multiple KPIs are displayed for the big picture
KPI dashboard
More than one chart is needed
Advantage or Disadvantage: Balanced Scorecard: Difficult to maintain momentum
Disadvantage
Advantage or Disadvantage: Balanced Scorecard: Improves
organizational alignment
Advantage
Advantage or Disadvantage: Balanced Scorecard: Links strategy to organizational results
Advantage
Disadvantage or Advantage: KPI: Data driven results make it easier to quantify performance
Advantage
Advantage or Disadvantage:
KPI: Data driven results make it easier to quantify performance
Advantage
Advantage or Disadvantage:
KPI: Difficult to change once set up
Disadvantage
