Lesson 4

Question 1

Descriptive Statistics

Answer 1

= describing the sample on the basis of data collected

Question 2

Inferential Statistics

Answer 2

= drawing conclusions about a population on the basis of a sample
- Require a representative sample which we expect to get from a large random sample

Question 3

Null hypothesis

Answer 3

= a statistical theory that states there is no statistical relationship or significance between the variables

Question 4

Type 1 error

Answer 4

Occurs when we reject a true null hypothesis

e.g. jury convicts an innocent person

Question 5

Type 2 error

Answer 5

Occurs when we do not reject a false null hypothesis

e.g. jury acquits a guilty person

Question 6

Process of hypothesis testing (4)

Answer 6

1. Hypothesis Formulation
2. Specification of significance level
3. Selection of appropriate statistical test
4. Calculation of the test statistic and acceptance or rejection of the hypothesis

Question 7

Significance Level

Answer 7

= probability of making a type 1 error

Question 8

Significance Level for a Type 1 Error

Answer 8

0.01 or 0.001

Question 9

Significance Level for a Type 2 Error

Answer 9

0.1

Question 10

Significance Level when Type 1 and Type 2 Error are equally likely

Answer 10

0.05