Module 2 Presentation Slides

Statistics: Central Tendency 2: Mode, Mean, Median – Which One?
Statistics: Central Tendency
• Mode
– Nominal data – outliers are fine
• Which brand do you prefer?
• Mean
– Interval and ratio data not
excessively skewed
• What is the average salary?
• Median
– Ordinal Data – skewed data is fine
• How satisfy are you?
Statistics: Central Tendency
Statistics: Quick Review
Statistics: Quick review
• Data Science Terminology

• Statistics Terminology
• Qualitative vs. Quantitative
• Descriptive vs. Inferential
Statistics
• Population vs. Sample
• Random Sample
• Data Types
• Central Tendency
Statistics: Quick Review Send me a message on Canvas to tell me which
one is you at this time; also, tell me what type of
data am I collecting. Please!
In the Dark
I see light!
Statistics: Standard Deviation and Variance
Spread of data
• Standard Deviation
– Average distance from the
mean
(Population)
Where σ = lowercase sigma = standard deviation

Σ = the sum of
Xi = individual datum value
μ = mean of population
N = the number of datum in the population
• Standard Deviation (Population)

– Average distance from the mean

μ

μ

μ

– Price of Ice Tea (1, 3, 6, 8, 7)
• N=5
• μ = (1+3+6+8+7)/ 5 = 5
(Sample)
Where s = standard deviation (sample)

Σ = the sum of
xi = individual datum value
x̄ = mean of sample
• Variance (Population) = σ2
• Variance (Sample) = s2
Statistics: Standard Deviation and Variance Empirical Rule
– 68–95–99.7 rule
– Empirical Rule
68%
-3σ -2σ -1σ μ +1σ +2σ +3σ

– 68–95–99.7 rule
– Empirical Rule
95%
-3σ -2σ -1σ μ +1σ +2σ +3σ

– 68–95–99.7 rule
– Empirical Rule
99.7%
-3σ -2σ -1σ μ +1σ +2σ +3σ

– U.S. males average weight is 171 pounds. A 95th
percentile male is 216 pounds
– What is the standard deviation σ?
95%
-3σ -2σ -1σ μ +1σ +2σ +3σ

95 Percent males in the United States

weight between 126lbs and 216lbs
95% with a standard deviation of 22.5lbs
126lbs 216lbs
171lbs
-3σ -2σ -1σ μ +1σ +2σ +3σ
σ=?
μ = 171 lbs
A 95 percentile male is 216 lbs (95 percentile
is 2 standard deviation from mean)
σ = (216 -171)/2; σ = 22.5
Statistics: Z-Score
Z-score
• Describes the location of a raw
value in relations to the mean
and standard deviation
Statistics: Z-Score for Population
ZX = (X – μ) / σ
95%
126lbs 216lbs
171lbs
-3σ -2σ -1σ μ +1σ +2σ +3σ
σ=?
μ = 171 lbs
σ = (216 -171)/2; σ = 22.5
Statistics: Z-Score for Population What is the Z-Score for 120lbs?
ZX = (X – μ) / σ
Z120 = (120 – 171) / 22.5
Z120 = -2.27
• a 120lbs male is 2.27
standard deviation from the
95% mean
126lbs 216lbs
171lbs
-3σ -2σ -1σ μ +1σ +2σ +3σ
σ=?
μ = 171 lbs
σ = (216 -171)/2; σ = 22.5
Statistics: Z-Score for Population
-3σ -2 -1σ μ +1σ +2σ +3σ

Normal Distribution Standard Normal Distribution
σ=1
μ =0
Statistics: Z-Score for Sample
zx = (x – x̄) / s
Statistics: Z-Score
Statistics: z-Distribution and t-Distribution
In the context of sample size

(Population)
Where σ = lowercase sigma = standard deviation

Σ = the sum of
μ = mean of population
(Sample)
Where s = standard deviation (sample)

Σ = the sum of
xi = individual datum value
x̄ = mean of population
Statistics: z-Distribution and t-Distribution ZX = (X – μ) / σ
-3σ -2 -1σ μ +1σ +2σ +3σ

Normal Distribution Standard Normal Distribution
σ=1
μ =0
When n is closer to 30+ Z-Distribution (Standard Normal Distribution)

(n = ∞)
Is σ YES Use z-
available? Distribution
NO
Use s
Use t-
formula to
Distribution
estimate σ
Sample size YES Use z-

≥ 30? Distribution
NO
Use t-
Distribution
Statistics: Covariance Covariance
• Measures linear
relationship between two
variables
Statistics: Covariance
• Covariance (Population)
Where
Σ = the sum of
X̄ = population mean
n = the number of datum in the population
• Covariance (Sample)
Where
Σ = the sum of
X̄ = sample mean
n = the number of datum in the sample
X Y X̄ ȳ (X-X̄) (Y-Ȳ) (X-X̄)(Y-Ȳ)
Temerature Customer
100 60 87.5 180 12.5 -120 -1495.83
95 98 87.5 180 7.5 -81.7 -612.5
90 100 87.5 180 2.5 -79.7 -199.167
85 200 87.5 180 -2.5 20.3 -50.8333
80 300 87.5 180 -7.5 120 -902.5
75 320 87.5 180 -12.5 140 -1754.17
Σ (X-X̄)(Y-Ȳ) = -5015
Σ (X-X̄)(Y-Ȳ) / n-1 = -5015 / 5
Cov(X,Y) = -1003
Statistics: Covariance Temerature vs. Customer
X Y 360
Temerature Customer 310
100 60 260
95 98
210
90 100
160
85 200
80 300
110
75 320 60
70 75 80 85 90 95 100
Cov(X,Y) = -1003
X Y 360
100 60 260
95 98 210
90 100 160
85 200 110
80 300 60
75 320 70 75 80 85 90 95 100
Cov(X,Y) = -1003
X Y X̄ ȳ (X-X̄) (y-ȳ) (X-X̄)(y-ȳ)
Chips Weight
2 120 4.83 185 -2.83 -65.3 185.111
5 207 4.83 185 0.17 21.7 3.61111
3 122 4.83 185 -1.83 -63.3 116.111
8 247 4.83 185 3.17 61.7 195.278
5 227 4.83 185 0.17 41.7 6.94444
6 189 4.83 185 1.17 3.67 4.27778
Σ (X-X̄)(Y-Ȳ) = 511.33
Σ (X-X̄)(Y-Ȳ) / n-1 = 511.33 / 5
Cov(X,Y) = 102.26
Statistics: Covariance Chips Vs. Weight
X Y 300
280
Chips Weight 260
2 120 240
220
5 207 200
3 122 180
160
8 247 140
5 227 120
100
6 189 1 2 3 4 5 6 7 8 9
Cov(X,Y) = 102.26
Statistics: Covariance Chips Vs. Weight
300
X Y 280
Chips Weight 260

240
2 120 220
5 207 200
180
3 122 160
8 247 140
120
5 227 100
6 189 1 2 3 4 5 6 7 8 9
Cov(X,Y) = 102.26
Statistics: : Covariance
• Cov(X,Y) = 0 ?
Statistics: : Covariance
• + means positive linear relationship
• - means negative linear relationship
• 0 means no linear relationship
• It only gives the direction of the relationship

• No indication of the strength of the relationship
Statistics: Correlation Correlation
• Measures relationship and
strength of the relationship
between two variables
X Y 360
100 60 260
95 98 210
90 100 160
85 200 110
80 300 60
75 320 70 75 80 85 90 95 100
Cov(X,Y) = -1003
Statistics: Correlation Temerature vs. Customer
• Pearson Correlation Coefficient 360
• Pearson r 310
260
Weak Strong 210
160
110
60
70 75 80 85 90 95 100
-1 0 1
r= Cov(X,Y) / sx sy
Statistics: Correlation Temerature vs. Customer
X Y 360
100 60 260
95 98 210
90 100 160
85 200 110
80 300 60
75 320 70 75 80 85 90 95 100
Cov(X,Y) = -1003
Sx = 9.35
Sy = 111.29
r= Cov(X,Y) / sx sy = -1003/(9.35 * 111.29)

r = -0.9635
Statistics: Correlation Chips Vs. Weight
300
X Y 280
Chips Weight 260

240
2 120 220
5 207 200
180
3 122 160
8 247 140
120
5 227 100
6 189 1 2 3 4 5 6 7 8 9
Cov(X,Y) = 102.26
r= Cov(X,Y) / sx sy = 0.8948
Statistics: Correlation
• Correlation
does not equal
to causation
Statistics: Correlation

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Statistics: Central Tendency 2: Mode, Mean, Median – Which One?

Statistics: Central Tendency

• Data Science Terminology

Where σ = lowercase sigma = standard deviation

• Standard Deviation (Population)

• Standard Deviation (Population)

• Standard Deviation (Population)

• Standard Deviation (Population)

• Standard Deviation (Population)

Where s = standard deviation (sample)

-3σ -2σ -1σ μ +1σ +2σ +3σ

-3σ -2σ -1σ μ +1σ +2σ +3σ

-3σ -2σ -1σ μ +1σ +2σ +3σ

-3σ -2σ -1σ μ +1σ +2σ +3σ

95 Percent males in the United States

-3σ -2 -1σ μ +1σ +2σ +3σ

In the context of sample size

Where σ = lowercase sigma = standard deviation

Where s = standard deviation (sample)

-3σ -2 -1σ μ +1σ +2σ +3σ

When n is closer to 30+ Z-Distribution (Standard Normal Distribution)

Sample size YES Use z-

Σ (X-X̄)(Y-Ȳ) / n-1 = -5015 / 5

Temerature Customer 310

Temerature Customer 310

Σ (X-X̄)(Y-Ȳ) / n-1 = 511.33 / 5

Chips Weight 260

• It only gives the direction of the relationship

Temerature Customer 310

• Pearson Correlation Coefficient 360

Weak Strong 210

Temerature Customer 310

r= Cov(X,Y) / sx sy = -1003/(9.35 * 111.29)

Chips Weight 260

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