C723 QUANTITATIVE BUSINESS ANALYSIS FINAL.
Designed to boost confidence and grades!
Hypothesis - Answer: is an assumption about a population parameter such as a mean
or a proportion
Null hypothesis (H0) - Answer: -represents the status quo
-states a belief that the population parameter is ≤, =, or ≥ a specific value
-believed to be true unless there is overwhelming evidence to the contrary
Alternative hypothesis (H1) - Answer: -represents the opposite of the null hypothesis
-believed to be true if the null hypothesis is found to be false
-always states that the population parameter is >, ≠, or < a specific value
Two-tail hypothesis test - Answer: is used whenever the alternative hypothesis is
expressed as ≠
One-tail hypothesis test - Answer: is used when the alternative hypothesis is stated as
< or >
Type I error - Answer: -occurs when the null hypothesis is rejected when it is true
-when it occurs the producer is looking for a problem in its process that does not exist
Type II error - Answer: -occurs when we fail to reject the null hypothesis when it is not
true
-when it occurs the customer is getting a product from a process that is not performing
properly
Correlation analysis - Answer: -is used to measure both the strength and direction of a
linear relationship between two variables
-A relationship is linear if the scatter plot of the independent and dependent variables
has a straight-line pattern
1
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, Correlation coefficient, r - Answer: -indicates both the strength and direction of the
linear relationship between the independent and dependent variables
Population correlation coefficient (ρ) - Answer: refers to the correlation between all
values of two variables of interest in a population
Confidence interval for the mean - Answer: is an interval estimate around a sample
mean that provides us with a range within which the true population mean is expected
to lie
Confidence level - Answer: is defined as the probability that the interval estimate will
include the population parameter of interest
Student's t-distribution - Answer: is used in place of the normal probability distribution
when the sample standard deviation, s, is used in place of the population standard
deviation, σ
Probability sample - Answer: is a sample in which each member of the population has a
known, nonzero, chance of being selected for the sample
Simple random sample - Answer: is a sample in which every member of the population
has an equal chance of being chosen
Sampling error - Answer: is defined as the difference between the sample statistic and
the population parameter
Central Limit Theorem - Answer: states that the sample means of large-sized samples
will be normally distributed regardless of the shape of their population distributions
2
APPHIA - Crafted with Care and Precision for Academic Excellence.
Designed to boost confidence and grades!
Hypothesis - Answer: is an assumption about a population parameter such as a mean
or a proportion
Null hypothesis (H0) - Answer: -represents the status quo
-states a belief that the population parameter is ≤, =, or ≥ a specific value
-believed to be true unless there is overwhelming evidence to the contrary
Alternative hypothesis (H1) - Answer: -represents the opposite of the null hypothesis
-believed to be true if the null hypothesis is found to be false
-always states that the population parameter is >, ≠, or < a specific value
Two-tail hypothesis test - Answer: is used whenever the alternative hypothesis is
expressed as ≠
One-tail hypothesis test - Answer: is used when the alternative hypothesis is stated as
< or >
Type I error - Answer: -occurs when the null hypothesis is rejected when it is true
-when it occurs the producer is looking for a problem in its process that does not exist
Type II error - Answer: -occurs when we fail to reject the null hypothesis when it is not
true
-when it occurs the customer is getting a product from a process that is not performing
properly
Correlation analysis - Answer: -is used to measure both the strength and direction of a
linear relationship between two variables
-A relationship is linear if the scatter plot of the independent and dependent variables
has a straight-line pattern
1
APPHIA - Crafted with Care and Precision for Academic Excellence.
, Correlation coefficient, r - Answer: -indicates both the strength and direction of the
linear relationship between the independent and dependent variables
Population correlation coefficient (ρ) - Answer: refers to the correlation between all
values of two variables of interest in a population
Confidence interval for the mean - Answer: is an interval estimate around a sample
mean that provides us with a range within which the true population mean is expected
to lie
Confidence level - Answer: is defined as the probability that the interval estimate will
include the population parameter of interest
Student's t-distribution - Answer: is used in place of the normal probability distribution
when the sample standard deviation, s, is used in place of the population standard
deviation, σ
Probability sample - Answer: is a sample in which each member of the population has a
known, nonzero, chance of being selected for the sample
Simple random sample - Answer: is a sample in which every member of the population
has an equal chance of being chosen
Sampling error - Answer: is defined as the difference between the sample statistic and
the population parameter
Central Limit Theorem - Answer: states that the sample means of large-sized samples
will be normally distributed regardless of the shape of their population distributions
2
APPHIA - Crafted with Care and Precision for Academic Excellence.
