BAN 280: Data Analysis and Decision Making

BAN 280: Data Analysis and Decision Making

coefficient of variation - correct answer ✔✔standard deviation/mean

Used to compare distributions on different scales



Empirical Rule - correct answer ✔✔68% within 1 SD

95% within 2 SD

99.7% within 3 SD



Sampling Error - correct answer ✔✔difference between sample and population mean



Margin of Error - correct answer ✔✔Number you add or subtract (depends on confidence level)



"the more confident you want to be... - correct answer ✔✔widen the range"



What if I want to be more confident? - correct answer ✔✔take less risk and bigger range



Increase sample size to... - correct answer ✔✔become more confident



If I increase confidence level... - correct answer ✔✔Std error of mean doesnt change

Critical value increases

MOE increases

confidence level is wider



In a random sample, the closer the mean is to the population mean... - correct answer ✔✔the smaller
the sampling error



the sampling distribution of the sample mean is - correct answer ✔✔a distribution of all sample means
of a fixed sample size from a population