2
Topics 5-6 Business Statistics FCs || || || || ||
(straighterline) exam with precise detailed || || || || ||
answers
Mean - Correct answer ✔A measure of central measurement that is computed
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by summing all the values and dividing by the number of items. Commonly
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referred to as an average or the expected value.
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Variance - Correct answer ✔The arithmetic mean of the squared deviations of
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the observations from the mean.
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Standard deviation - Correct answer ✔The square root of the variance.
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Probability Distribution - Correct answer ✔A listing of all the possible
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outcomes of an experiment and the probability of each outcome occurring.
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Binomal probability distribution - Correct answer ✔A probability distribution
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of outcomes that will have only two possible values.
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Poisson Probability Distribution - Correct answer ✔A discrete probability
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distribution that involves tracking the number of times an event occurs over a
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period of time. || ||
, 2
Empirical Rule - Correct answer ✔A rule that states that approximately 68% of || || || || || || || || || || || || ||
the distribution will be within + or - 1 standard deviation of the mean, 95% of
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the distribution will be within + or - 2 standard deviations of the mean, and
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99.7 of the distribution will be within + or - 3 standard deviations of the mean.
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Mean of a Probability Distribution Formula - Correct answer ✔μ = ∑[xP(x)]
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μ is the mean of the probability distribution
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∑ is sum || || ||
x is a value in the probability distribution
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P(x) is a probability of a value in the distribution
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|| NOTE: use a table to calculate || || || || ||
Variance of a Discrete Probability Distribution Formula - Correct answer ✔σ² =
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Σ[ (x - μ)² P(x) ]
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σ² is the variance of the distribution
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μ is the mean of the probability distribution
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∑ is sum || || ||
x is a value in the probability distribution
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P(x) is a probability of a value in the distribution
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NOTE: use a table to calculate || || || || ||
Topics 5-6 Business Statistics FCs || || || || ||
(straighterline) exam with precise detailed || || || || ||
answers
Mean - Correct answer ✔A measure of central measurement that is computed
|| || || || || || || || || || || ||
by summing all the values and dividing by the number of items. Commonly
|| || || || || || || || || || || || ||
referred to as an average or the expected value.
|| || || || || || || ||
Variance - Correct answer ✔The arithmetic mean of the squared deviations of
|| || || || || || || || || || || ||
the observations from the mean.
|| || || ||
Standard deviation - Correct answer ✔The square root of the variance.
|| || || || || || || || || ||
Probability Distribution - Correct answer ✔A listing of all the possible
|| || || || || || || || || || ||
outcomes of an experiment and the probability of each outcome occurring.
|| || || || || || || || || ||
Binomal probability distribution - Correct answer ✔A probability distribution
|| || || || || || || || ||
of outcomes that will have only two possible values.
|| || || || || || || ||
Poisson Probability Distribution - Correct answer ✔A discrete probability
|| || || || || || || || ||
distribution that involves tracking the number of times an event occurs over a
|| || || || || || || || || || || || ||
period of time. || ||
, 2
Empirical Rule - Correct answer ✔A rule that states that approximately 68% of || || || || || || || || || || || || ||
the distribution will be within + or - 1 standard deviation of the mean, 95% of
|| || || || || || || || || || || || || || || ||
the distribution will be within + or - 2 standard deviations of the mean, and
|| || || || || || || || || || || || || || ||
99.7 of the distribution will be within + or - 3 standard deviations of the mean.
|| || || || || || || || || || || || || || ||
Mean of a Probability Distribution Formula - Correct answer ✔μ = ∑[xP(x)]
|| || || || || || || || || || || ||
μ is the mean of the probability distribution
|| || || || || || || ||
∑ is sum || || ||
x is a value in the probability distribution
|| || || || || || || ||
P(x) is a probability of a value in the distribution
|| || || || || || || || ||
|| NOTE: use a table to calculate || || || || ||
Variance of a Discrete Probability Distribution Formula - Correct answer ✔σ² =
|| || || || || || || || || || ||
Σ[ (x - μ)² P(x) ]
|| || || || || ||
σ² is the variance of the distribution
|| || || || || || ||
μ is the mean of the probability distribution
|| || || || || || || ||
∑ is sum || || ||
x is a value in the probability distribution
|| || || || || || || ||
P(x) is a probability of a value in the distribution
|| || || || || || || || ||
NOTE: use a table to calculate || || || || ||
