Chapter 1 Drawing Statistical Conclusions

STAT 3022
School of Statistic, University of Minnesota

January 27, 2013

Outline

Some Basics
Summary statistics

sample mean X =

i=1 Xi /n

sample standard deviation ( n (

i=1

Xi X

)2

)/ (n 1)

median, Q1 , Q3 , interquartile range (IQR) IQR = Q3 Q1

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Some Basics

Roll a 6-face dice 3 times, outcome: 1, 2, 6 Sample Mean: X =

1+2+6 3

=3 n

Population Mean: =? Law of large numbers: Xn for

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Some Basics

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Some Basics
Graphical summary

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Case Study: Observational Experiment

Question: Did a bank discriminatorily pay higher starting salaries to men than to women? Data: Beginning salaries for 32 men, 61 women. All skilled, entry-level employees hired between 1969 and 1977 Perform exploratory data analysis using graphical and numerical summaries of the data.

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Graphical Summary
Male
12 0 3000 4 8

Frequency

4000

5000

6000 Starting Salary

7000

8000

9000

Female
20 0 3000 5 10

Frequency

4000

5000

6000 Starting Salary

7000

8000

9000

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Interpreting Histograms

Relative frequency histograms allow us to visually display general characteristics of the data distribution of a particular variable: Central tendency - Do men tend to be paid higher than women? Spread - What is the range of most salaries? Symmetry - Is there a skew in either distribution? Are there any outliers? Histograms are used to show broad features, not exquisite detail

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Numerical Summary

lec1_1.R lec1_2.R in-class

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Normal Distribution
1 bell shaped, dened by the formula 2 e 22 two parameters: mean , variance 2 (standard deviation = 2)
(x)2

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Normal Distribution
Normal distribution N(, ) is dened by
(x)2 1 f(x) = e 22 2

Standard normal distribution N(0, 1)

1 2 1 (x) = e 2 x 2

Why is standard normal distribution important ) ( 1 x f(x) =

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Normal Distribution

Why normal distribution is so important?

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Normal Distribution
What is this distribution?

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Central Limit Theorem

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> dnorm(0, mean = 0, sd = 1) # density [1] 0.3989423 > dnorm(0, mean = 0, sd = 2) [1] 0.1994711 > > pnorm(1, mean = 0, sd = 1) # distribution function [1] 0.8413447 > pnorm(1, mean = 0, sd = 1, lower.tail = FALSE) [1] 0.1586553 > > qnorm(0.5, mean = 2, sd = 1) # quantile function [1] 2 > qnorm(0, mean = 2, sd = 1) [1] -Inf > > rnorm(5, mean = 0, sd = 1) # random generation [1] 2.2867947 1.3311000 1.9408290 -0.5366956 1.1687528 > rnorm(5) [1] -0.48693373 0.02950848 -1.03232990 -0.24314950 -0.42515522

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