Practice Guide
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, Business Statistics Final Exam – Study &
Practice Guide
1. Alpha The probability of committing a Type I Error.
2. Alternate
Hy- pothesis A statement that is accepted if the sample data provide suflcient evidence
that the Ho is false.
3. Bar Chart A graph in which the classes are reported on the horizontal axis and the
class
frequencies on the vertical axis. The class frequencies are proportional to
the heights of the bars.
4. Beta The probability of committing a Type II Error.
5. Central Limit The- If all samples of a particular size are selected from any population, the
sampling
orem distribution of the sample mean is approximately a normal distribution. This
approximation improves with larger samples.
6. Chebyshev's For any set of observations (sample or population), the proportion of the
The- orem
values that lie within k standard deviations of the mean is at least 1-1/k
squared where k is any constant greater than 1.
7. Cluster Sample A population is divided into clusters using naturally occurring
geographic or other boundaries. Then, clusters are randomly selected
and a sample is collected by randomly selecting from each cluster.
8. Coefficient
of A measure of the strength of the linear relationship between two
Correlation variables.
9. Coefficient of De-
termination The proportion of the total variation in the dependent variable Y that is
10. Collectively Ex- explained, or accounted for, by the variation in the independent
haustive variable X.
11. Conditional Prob- At least one of the events must occur when an experiment is conducted.
ability
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