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Proportion
f
p
n
Population Mean
(X )
Sample Mean
(X )
X
n
Sample Standard Deviation the average deviation of the observed values of a random
variable (X) from the mean of the variable (X-bar).
Total Sum of Square Deviations (Variation, TSS) The sum of squared deviations of
the individual observations of a variable from the mean.
TSS ( X X ) 2
(X X )
2
var
n 1
(X X )
2
sd
n 1
Standard deviation of a Sample Proportion the square root of the variance but
calculated as the square root of the probability (p) times the inverse of the probability
(q=1-p).
sd pq
( X )
2
x N ( , )
Law of Large Numbers a) in probability theory, a theorem that states that the average
of the results obtained from a large number of trials should be close to the expected value.
b) the mean from a large number of samples should be close to the population mean. c)
the first fundamental theorem of probability.
Central Limit Theorem a) in probability theory, a theorem that states that the mean of
a sufficiently large number of independent random trials, under certain common
conditions, will be approximately normally distributed. b) as the sample size increases
the distribution of the sample means approaches the normal distribution irrespective of
the shape of the distribution of the variable. c) from a practical standpoint, many
distributions can be approximated by the normal distribution, including the binomial
(coin toss), Poisson (event counts), and Chi-Squared. d) justifies the approximation of
large-sample statistics to the normal distribution. e) the first fundamental theorem of
probability.
Sampling Distribution a) the distribution of a statistic, like a mean, for all possible
samples of a given size. b) based on the law of large numbers and the central limit
theorem, the sampling distribution will have a mean equal to the population mean and
will be normally distributed.
x N (0,1)
Z-Scores (Normal Deviates) a standardized score that converts a variable (x) into a
standard normal distribution with mean = 0 and sd =1 and a metric of standard deviations
from the mean.
X X
z X ( z * sd ) X
sd
sd
se
n