1. Review for Exam 1 Ch 1-5 Ch 1-3 Descriptive Statistics
Ways to collect, describe, and present data
Collect data
Population vs. Sample
Statistical Sampling Technique
a) Simple random b) Stratified c) Systematic d) Cluster
Data Types
Primary vs. Secondary
Qualitative vs. Quantitative
Measure levels:
a) Nominal (group, compare, mode)
b) Ordinal (everything you can do for level a, + sort, median)
c) Interval (everything you can do for level b, + subtraction, zero ≠ nothing)
d) Ratio (everything you can do for level c, + division, zero = nothing)
BUS304 – Review Chapter 1-5 1

2. Ch 1-3 Graphical Presentation
Bar Chart
Pie Chart or
Frequency
Relative or
Qualitative Categorical
(Nominal, Ordinal)
Limited Categories
Bar Chart
Line Chart
start
Data Type
Data class
Frequency
Relative
Histogram
Quantitative
(Discrete/continuous, Interval/Ratio)
Continuous Range
Scatter Chart
Two sets of continuous variables – relationship
BUS304 – Review Chapter 1-5 2

3. Procedures to create a histogram
Create a frequency table
Identify the range of data:
Range = Rounded maximum - Rounded minimum
Identify the width of each category:
Width = Range / Number of bars
Write down the lower and upper bound for each bar
Lower limit
Upper limit
Frequency
Rounded min
=lower limit + width
Count numbers
=upper limit of above category …
=lower limit + width = rounded max
Remember to verify
the total frequency = sample size
BUS304 – Review Chapter 1-5

4. Ch 1-3 Numerical Characterization
Measure of central tendency:
Mean Median Mode
Measure of Variation
Range Variance Standard Deviation
Other Location Related Measures (find location first)
Percentiles/Quartiles (Calculate location first, then go find the value)
Interquartile range
Mean: 421/5=84.2
Median: 85
Mode: no mode
Range: 90-78=12
Variance: 26.2
Standard Deviation: 5.12
Coefficient of variation: 0.06
25th Percentile? 1.5th, 79
50th Percentile? Meidan, 85
75th Percentile? 89
Interquartile range 89-79=10
Box and Whisker
BUS304 – Review Chapter 1-5 4

5. Chapter 4 Probability Theory
Key concepts
Experiments and events
Identify elementary events and sample space
Relationship among events:
Complement Events, P(E1 ) =1- P(E2 )
Mutually Exclusive Events, P(E1 and E2 ) = 0
Conditional Probabilities, P(E1 | E2 ) = P(E1 and E2 ) / P(E2 )
Independent Events. P(E1 and E2 ) = P(E1 )*P(E2 )
Mean (expected value) and SD of a random variable
Mean – weighted average of all possible values (weights are the probs).
Variance – weighted average of the squared deviation from the expected value.
BUS304 – Review Chapter 1-5

6. Chapter 5 Normal distribution Continuous random variable
Given the mean and standard deviation (variance sometimes, pay attention to the notation), how to compute the probability.
4/16/2019
BUS304 – Midterm Review