×

### Let's log you in.

or

Don't have a StudySoup account? Create one here!

×

### Create a StudySoup account

#### Be part of our community, it's free to join!

or

##### By creating an account you agree to StudySoup's terms and conditions and privacy policy

Already have a StudySoup account? Login here

## Business Stats notes Chapter 5

by: Hannah Musser

131

2

3

# Business Stats notes Chapter 5 ST 260

Marketplace > University of Alabama - Tuscaloosa > Statistics > ST 260 > Business Stats notes Chapter 5
Hannah Musser
UA
GPA 3.5

Get a free preview of these Notes, just enter your email below.

×
Unlock Preview

### Preview these materials now for free

Why put in your email? Get access to more of this material and other relevant free materials for your school

This is part 1 of chapter 5. I'll upload the second part on friday morning after the lecture. These notes include examples that are broken down. You won't find these examples on the power point.
COURSE
Statistical Data Analysis
PROF.
Cali Davis
TYPE
Class Notes
PAGES
3
WORDS
CONCEPTS
Statistics 260
KARMA
25 ?

## Popular in Statistics

This 3 page Class Notes was uploaded by Hannah Musser on Wednesday February 10, 2016. The Class Notes belongs to ST 260 at University of Alabama - Tuscaloosa taught by Cali Davis in Winter 2016. Since its upload, it has received 131 views. For similar materials see Statistical Data Analysis in Statistics at University of Alabama - Tuscaloosa.

×

## Reviews for Business Stats notes Chapter 5

×

×

### What is Karma?

#### You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!

Date Created: 02/10/16
ST 260 Chapter 5 Note. Part 1 – 2/10/14 Prof. Cali Davis Quick Recall:  ­ Quantitative Variables: differences that have meaning to them, such as age, income,  height, and weight.  ­ Qualitative Variable (OR categorical): putting people or things into classifications. Such  as: gender, race, occupation, country, or political affliction.  Statistics can be described as “the science of decision­making in the face of uncertainty”  (An educated guess) So how do we measure uncertainty?  ­ Using probability: A numerical value or measure of the LIKLIHOOD that a certain  outcome or event occurs.  P(A)= probability of eventA ­ Probability requirements for discrete variables: 0 less than or equal to P(A), which is also less than or equal to 1 So P(A) is between 0 and 1 The way we look at what 0 is and what 1 is:  P(A) = 0 impossible event  P(A) = 1 certain event **Sum of the probabilities of all possible outcomes must equal one (1)** Example: if the probability that the broncos win the super bowl is half  (50%), and the probability that the panthers win the super bowl is half (50%), than the  sum of the probabilities equals 1 (100%).  ½ + ½ = 1 Probability can be conditioned under certain circumstances Conditioned Probability: The chance one event happens, given that another event will  occur. Example: if the broncos when the super bowl, the bars will probably sell more alcohol. Example : if the panthers win the super bowl, the broncos’ fans will probability start a riot. P(A | B) =P(A and B)/ P(B) = All outcomes belonging to BOTH A AND B  Divided By Those outcomes in the restricted group, B  Example Problem: (Cali Davis lecture) Credit Card Manager  ­ New credit test to determine credit worthiness. Credit test checked against 500 previous  customers. CREDIT TEST A Credit History:  Passed (P) Failed (F) 350 50 20 80 370 130 Good (G) ­1  row Default (D) ­2  row 1  row = total 400      row = total 100 Total both rows = 500 What is the probability of a customer defaulting? ­ 80 people failed and defaulted.  What is the probability of a customer defaulting given that he fails test A? ­ General rules P(A and B)  = P(A)  P(B|A)  = P(B)  P(A|B)  P(A or B) = P(A) + P(B) ‐ P(A and B) Look at the part that overlaps  Does knowledge from test A help you make a better decision?  P(D)= .20 P(D/F)= .62  Do you want to know the test A results before you give the loan?  “Credit test A results” and “defaulting” are dependent variables.

×

×

×

### You're already Subscribed!

Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'

## Why people love StudySoup

Jim McGreen Ohio University

#### "Knowing I can count on the Elite Notetaker in my class allows me to focus on what the professor is saying instead of just scribbling notes the whole time and falling behind."

Allison Fischer University of Alabama

#### "I signed up to be an Elite Notetaker with 2 of my sorority sisters this semester. We just posted our notes weekly and were each making over \$600 per month. I LOVE StudySoup!"

Bentley McCaw University of Florida

#### "I was shooting for a perfect 4.0 GPA this semester. Having StudySoup as a study aid was critical to helping me achieve my goal...and I nailed it!"

Parker Thompson 500 Startups

#### "It's a great way for students to improve their educational experience and it seemed like a product that everybody wants, so all the people participating are winning."

Become an Elite Notetaker and start selling your notes online!
×

### Refund Policy

#### STUDYSOUP CANCELLATION POLICY

All subscriptions to StudySoup are paid in full at the time of subscribing. To change your credit card information or to cancel your subscription, go to "Edit Settings". All credit card information will be available there. If you should decide to cancel your subscription, it will continue to be valid until the next payment period, as all payments for the current period were made in advance. For special circumstances, please email support@studysoup.com

#### STUDYSOUP REFUND POLICY

StudySoup has more than 1 million course-specific study resources to help students study smarter. If you’re having trouble finding what you’re looking for, our customer support team can help you find what you need! Feel free to contact them here: support@studysoup.com

Recurring Subscriptions: If you have canceled your recurring subscription on the day of renewal and have not downloaded any documents, you may request a refund by submitting an email to support@studysoup.com

Satisfaction Guarantee: If you’re not satisfied with your subscription, you can contact us for further help. Contact must be made within 3 business days of your subscription purchase and your refund request will be subject for review.

Please Note: Refunds can never be provided more than 30 days after the initial purchase date regardless of your activity on the site.