MODULE 3

Question 1

Measures linear correlation between two numerical variables

Answer 1

Pearson Correlation Coefficient

Question 2

It is a branch of statistics that involves using sample data to make conclusions or predictions about a larger population.

Answer 2

Inferential Statistics

Question 3

a fundamental concept in inferential statistics used to make decisions based on sample data for population.

Answer 3

Hypothesis testing

Question 4

Inferential statistics encompasses techniques and methods used to:

Answer 4

Test hypotheses and make decisions about population characteristics
(hypothesis testing).

Make predictions or forecast future outcomes based on data (predictive
modeling)

Question 5

measures the strength and direction of the linear relationship between two variables.

Answer 5

correlation

Question 6

It allows us to infer or generalize findings from a sample to the population it represents.

Answer 6

Inferential Statistics

Question 7

guides our decision-making in hypothesis testing by setting a threshold for accepting or rejecting the null hypothesis based on the observed data

Answer 7

Significance level

Question 8

when the population standard deviation (σ) is unknown and must be estimated from the sample.

Answer 8

T-test

Question 9

Functions of Diagnostic Analytics

Answer 9

Identify Anomalies
Drill into Analytics (Discovery)
Determine Casual Relationships

Question 10

is used to determine whether there is a significant association between two categorical variables

Answer 10

Chi-Square Test

Question 11

a statistical test used to determine whether there is a significant difference between sample and population means, or between the means of two samples

Answer 11

Z-test

Question 12

is robust for small sample sizes and is appropriate when dealing with less than 30 samples or when the population standard deviation is unknown

Answer 12

T-test

Question 13

Independent variable does influence dependent variable

Answer 13

Alternative hypothesis

Question 14

in simple terms is like a range or a “guess” about where a population value might fall. It’s not an exact value, but rather a range of values that we can be reasonably confident the true population value lies within

Answer 14

Confidence interval

Question 15

Steps in hypothesis testing

Answer 15

Formulate hypothesis
Choose significant level
Select test statistic
Calculate P-value
Make decision
Draw conclusion

Question 16

It is the process of using sample data to calculate a single value (point estimate) that serves as an estimate of a population parameter

Answer 16

Point estimation

Question 17

Measure of association; Refers to a linear relationship two variables

Answer 17

correlation

Question 18

Refers to the general relationship between two random variables

Answer 18

association

Question 19

Errors

Answer 19

Type I Error - False Positive
Type II Error - False Negative

Question 20

This process uses statistical methods to analyze the sample data and draw inferences or make predictions about parameters or characteristics of the population.

Answer 20

Inferential Statistics

Question 21

Inferential statistics techniques / methods

Answer 21

Hypothesis testing
Predictive modeling

Question 22

are used to test hypotheses about population means or proportions.

when the population sd is known

n > 30

Answer 22

Z-test

Question 23

Measures the strength and direction of the nonlinear relationship between two variables

Answer 23

Spearman Rank Correlation

Question 24

Rejected Null hypothesis when it is true

Answer 24

Type I error
False positive

Question 25

Rejected Alternate hypothesis when it is true

Answer 25

Type II error
False negative

Question 26

Independent variable does not influence dependent variable.

Answer 26

Null hypothesis