Classical Definition of Probability - ANSWERSIf the process that generates the outcome is known, probabilities can be deduced from theoretical arguments.
Relative Frequency Definition of Probability - ANSWERSBased on empirical data. The probability that an outcome will occur is simply the relati...
Classical Definition of Probability - ANSWERSIf the process that generates the outcome is known,
probabilities can be deduced from theoretical arguments.
Relative Frequency Definition of Probability - ANSWERSBased on empirical data. The probability that an
outcome will occur is simply the relative frequency associated with that outcome.
Subjective Definition of Probability - ANSWERSBased on judgment and experience. (Sports predictions)
Random Variable - ANSWERSa numerical description of the outcome of an experiment
Discrete random variable - ANSWERSRandom variable where the number of possible outcomes can be
counted.
Continuous random variable - ANSWERSRandom variable that has outcomes over one or more
continuous intervals of real numbers
Expected Value of a random variable - ANSWERSCorresponds to the notion of the mean, or average for a
sample.
Weighted Average of the squared deviations from the expected value - ANSWERSVariance of a discrete
random variable may be computed as this.
True - ANSWERSVariance measures uncertainty of the random variable; The higher the variance, the the
higher the uncertainty of the outcome.
Binomial Distribution - ANSWERSprobability distribution of a random variable with two possible
outcomes; can assume different shapes and amounts of skewness, depending on the parameters.
, Normal Distribution - ANSWERSContinuous distribution described by the familiar bell shaped curve.
Probability density function - ANSWERSThe distribution that characterizes outcomes of a continuous
random variable.
Properties of Probability density functions - ANSWERS-Graph of density must lit at or above the x axis
-Total area under the density function above the x axis is 1
-For continuous random variables, there are an infinite number of values
-Calculates probability of a random variable lying within a certain number
-P is the area under the density function between a and b
properties of normal distribution - ANSWERS-Symmetric
-Mean = median = mode
-Range of x is unbounded
-Empirical rules apply exactly for this.
Regression Analysis - ANSWERSA tool for building mathematical and statistical models that characterize
relationships between a dependent variable and one or more independent, or explanatory, variables, all
of which are numerical.
Regression models of cross sectional data and Regression models of time series data - ANSWERSTwo
broad categories of regression models; focused on predicting the future.
Simple regression - ANSWERSRegression model that involves a single independent variable
Multiple regression - ANSWERSRegression model that involves two or more independent variables.
Linear functions - ANSWERSShow steady increase or decrease over the range of x and is the simplest
type of function used in predictive models.
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