Month: January 2021

Statistics for Beginners in Excel – Two Sample t Test: equal variances

(Basic Statistics for Citizen Data Scientist) Two Sample t Test: equal variances We now consider an experimental design where we want to determine whether there is a difference between two groups within the population. For example, let’s suppose we want to test whether there is any difference between the effectiveness of a new drug for …

Statistics for Beginners in Excel – One Sample t Test

(Basic Statistics for Citizen Data Scientist) One Sample t Test The t distribution provides a good way to perform one-sample tests on the mean when the population variance is not known provided the population is normal or the sample is sufficiently large so that the Central Limit Theorem applies. It turns out that the t distribution provides good results even …

Statistics for Beginners in Excel – Basic Concepts of t Distribution

(Basic Statistics for Citizen Data Scientist) Basic Concepts of t Distribution The one sample hypothesis test described in Hypothesis Testing using the Central Limit Theorem using the normal distribution is fine when one knows the standard deviation of the population distribution and the population is either normally distributed or the sample is sufficiently large that the Central Limit …

Statistics for Beginners in Excel – Required Sample Size for the Binomial Testing

(Basic Statistics for Citizen Data Scientist) Required Sample Size for the Binomial Testing We now show how to determine the sample size required to achieve a specified power objective. Example 1: A company has made a major improvement in their manufacturing process and wants to test whether this improvement will result in 80% of the components …

Statistics for Beginners in Excel – Statistical Power for the Binomial Distribution

(Basic Statistics for Citizen Data Scientist) Statistical Power for the Binomial Distribution Power of one-tailed test Example 1: What is the power of the test in Example 3 of Hypothesis Testing for the Binomial Distribution? For this example we found 13 successes in a sample of size 24 and used a one-tailed test with α = .05 …

Statistics for Beginners in Excel – Poisson Distribution

(Basic Statistics for Citizen Data Scientist) Poisson Distribution Basic Concepts Definition 1: The Poisson distribution has a probability distribution function (pdf) given by The parameter μ is often replaced by λ. A chart of the pdf of the Poisson distribution for λ = 3 is shown in Figure 1.   Figure 1 – Poisson Distribution   Observation: Some key statistical properties of the Poisson …

Statistics for Beginners in Excel – Negative Binomial and Geometric Distributions

(Basic Statistics for Citizen Data Scientist) Negative Binomial and Geometric Distributions Negative Binomial Distribution Definition 1: Under the same assumptions as for the binomial distribution, let x be a discrete random variable. The probability density function (pdf) for the negative binomial distribution is the probability of getting x failures before k successes where p = the probability of success on any single trial. Thus …

Statistics for Beginners in Excel – Two-sample hypothesis testing

(Basic Statistics for Citizen Data Scientist) Two-sample Proportion Testing Theorem 1: Let x1 and x2 be random variables with proportional distributions with mean π1 and π2 respectively. Let p1 be the proportion of successes in n1 trials of the first distribution and let p2 be the proportion of successes in n2 trials of the second distribution. When the number of trials n1 and n2 are sufficiently large, usually when ni πi ≥ 5 and ni (1 –πi) ≥ 5, the difference between …

Statistics for Beginners in Excel – One-sample hypothesis testing

(Basic Statistics for Citizen Data Scientist) One-sample Proportion Testing From the theorem, we know that when sufficiently large samples of size n are taken, the distribution of sample proportions is approximately normal, distributed around the true population proportion mean π, with standard deviation (i.e. the standard error) We can use this fact to do hypothesis testing as was …