The statistical test would be a binary logistic regression analysis. The probability distribution is paramount to this example because it utilizes the dichotomous dependent variable of Yes/No (employee stays/employee quits). Independent variables that may be used to predict employee retention include education level, length of employment, age, income, and gender. The output from this statistical test may help a business manager screen individuals before employment to assess whether the individual may stay or leave for another position.
The majority of statistical tests use the normal distribution as a foundation. An example of a business situation that employs the attributes of the normal distribution is a supervisor who wants to assess spending habits between males and females in a retail store. The outcome of interest, or the dependent variable, is average sales dollars per month, which is a continuous variable. Since the supervisor is interested in gender differences, gender (male/female) is entered as the independent variable in a two-sample t-test. The output of this test will determine the difference in monthly sales by gender as well as a confidence interval around this difference. If the confidence interval of the difference between genders does not include zero (Cleophas, 2004), one may assume that there is a difference between genders regarding spending habits.
Another example of the normal distribution contributing to decision-making involves a retail store manager trying to determine the optimal number of sales employees to have on the floor at any given time. The manager uses hourly sales as a benchmark to make this determination. A Pearson correlation test is constructed with number of sales employees on the floor as the independent variable (on the x-axis on a graphical display)...
We have a random sample of n from the population. We can find the mean and standard deviation of the proportion of that sample that has the characteristic. X 1, X2, ..., Xn are n random variables that are independent and identically distributed with mean ? And standard deviation ?. Sn= X1+X2+...+Xn is the sample sum. We can show E (Sn)=n? And SD (Sn)=? n. CLT states: Sn-n? /0,1: as n Question
Probability and Normal Distribution In the study of statistics, probability is a key concept that illustrates and describes the randomness and likelihood of an event from happening given the number of ways it can happen and the number of outcomes that this event could probably happen. That is, probability in statistics helps determine how likely an event is going to happen, as the certainty of the event happening cannot be determined
normal distribution is used to find the probability of the sample mean in this single sample z-test (we know the standard deviation of the population). Z-scores are measures of relative location. Suppose we are interested in whether enrichment sessions with parents and special tutors influence I.Q.s of children. We might start by learning what the baseline I.Q. scores are for children who participate in the I.Q. enrichment sessions. Standardized
Probability provides a measurable and quantifiable indication of how likely a particular outcome is for an event or experiment. It is expressed as a numeric value between zero and one (inclusive), where an impossible event has a probability of zero and a certain event has a probability of one. Probability is conventionally written using the symbol P, and may be expressed as a percentage by multiplying P. By 100. The problem
Probability Concepts & Applications (1) Describe the rationale for utilizing probability concepts. Is there more than one type of probability? If so, describe the different types of probability. One uses probability mathematics in order to assess the probability of a particular occurrence or the results of a particular action; For instance, whether or not one should go into a certain market or invest in a certain product -- what are the chances
), distribution function allows to find a range of data for which probability of the event to occur is the highest, which allows to adjust business and working schedule to the distribution particularities. Statistical devices such as probability distributions are used in analysis of employees' performance, sales analysis and marketing researches, as they allow to set the most optimal conditions for successful business performance and restructure business in accordance with probability
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