Jay Kapoor

STAT 4214
Weekly Report
Chapter 1

- Simple Linear Regression is just a special case of multiple linear regression and
is not a stand alone competent but a foundational element.

- Scientific Method : is a systematic approach to problem solving.

- The Six Sigma is a structured approach to apply scientific method.

Define - Measure - Analyse - Improvise - Control.

1. Clearly Defining the problem is a crucial step.

2. Formulate a model with the factors affecting it.
3. Strategise to change/manipulate the factors.
4. Revise Model/ Sequential Learning is important in Scientific Method.

Statistics is Handmaiden to Scientific Method

- One problem with data : VARIABILITY

Variability obscures our ability to make decisions and see what true model applies
to it.

- Most models are deterministic (no room for variability) and are pure & precise
under assumption. (V = IR)

- A probabilistic model is useful in conjunction with issue of variability. V = IR +

r , where r is a probabilistic term and its account for variability.

- Taylor Series (A scientific Basis)

If appropriate region is selected in non - linear function you can pretty much
approximate that on a straight line. Basically, localize the approximation.

- To make a deterministic model into a probabilistic just add an error term.

What does Linear actually mean for us ?

Plot of the function may not be linear but a model can be linear in terms of the
Beta’s (parameters). It does not have to be linear on axis basis.

- We do not use original data but transform it into Log and it becomes much more
powerful and useful. (Semi - Log paper)

Methods of Collection

- Historical data is trivial and needs number of careful considerations in order to

be useful.

- Observational Studies : interact with process only as much as required to obtain

relevant data.

Heisenberg Uncertainty Principle: the act of observing a process disturbs the

process. Great Example given in videos !

Different Sampling Plans : Simple Random Sampling ; Systematic Sampling ;

Stratified Random Sampling

Designed Experiment : Manipulate the factors allow system to reach equilibrium

and then observe the yield, yield is the response in this case.