Professional Documents
Culture Documents
Ba 03
Ba 03
Business
Analytics
2
Objectives:
Statistical learning including
quantitative, qualitative analysis
techniques
Predictive Analytics using linear,
Content:
Business Analytics - Introduction
Statistical Methods for Business Analytics
Basics of Hypothesis Testing
Correlation and Regression
Multiple Linear Regression
Model Comparison and Performance
Classification
Time Series Analysis
4
Till now…
5
All Together:
Mode: 24
5 Numbers: 14-21-23-25-30
SD: 3.235
Skewness: -0.329
N: 75
Mean: 22.8
Median: 23
6
Introduction
• What is Business Analytics
• Types of Data Analysis: Descriptive, Predictive
and Prescriptive
• Big Data Analytics – Volume , Velocity, Variety
• Data Mining
• Data Visualization
• Data Analytics Lifecycle
• Business Intelligence vs. Data Science
7
Summary
1) Functions and its Variables
2) Statistical Learning
3) Estimating Function
4) Purpose of Estimating Function:
• Inferences
• Predictions
5) Methods to Estimate f
• Parametric
• Non-parametric
6) Prediction Accuracy vs Interpretability
7) Supervised vs Unsupervised Learning
8
Interval Estimates
9
10
11
12
13
Sampling Distribution
Sampling
distribution
of x
x
z /2 x z /2 x
14
Margin of Error
A point estimator cannot be expected to provide the
exact value of the population parameter.
x Margin of Error
Sampling
distribution
of x
x
z /2 x z /2 x
16
$41,100 + $1,470
or
$39,630 to $42,570
19
Command:
CONFIDENCE.NORM(alpha,standard_dev,size)
•Alpha Required. The significance level used to compute the confidence
level. The confidence level equals 100*(1 - alpha)%, or in other words, an
alpha of 0.05 indicates a 95 percent confidence level.
•Standard_dev Required. The population standard deviation for the data
range and is assumed to be known.
•Size Required. The sample size.
Command:
CONFIDENCE.NORM(alpha,standard_dev,size)
•Alpha Required. The significance level used to compute the confidence
level. The confidence level equals 100*(1 - alpha)%, or in other words, an
alpha of 0.05 indicates a 95 percent confidence level.
•Standard_dev Required. The population standard deviation for the data
range and is assumed to be known.
•Size Required. The sample size.
Interval Estimate is
x ± CONFIDENCE.NORM
21
Let us provide a 95% confidence interval estimate of the mean rent per
month for the population of one- bedroom efficiency apartments within a
half-mile of campus. We will assume this population to be normally
distributed.
Let us provide a 95% confidence interval estimate of the mean rent per
month for the population of one- bedroom efficiency apartments within a
half-mile of campus. We will assume this population to be normally
distributed.
24
Command:
CONFIDENCE.T(alpha,standard_dev,size)
Alpha Required. The significance level used to compute the confidence
level. The confidence level equals 100*(1 - alpha)%, or in other words, an
alpha of 0.05 indicates a 95 percent confidence level.
Standard_dev Required. The sample standard deviation for the data range.
Size Required. The sample size.
Command:
CONFIDENCE.T(alpha,standard_dev,size)
Alpha Required. The significance level used to compute the confidence
level. The confidence level equals 100*(1 - alpha)%, or in other words, an
alpha of 0.05 indicates a 95 percent confidence level.
Standard_dev Required. The sample standard deviation for the data range.
Size Required. The sample size.
27
Use Use s
x z /2 x t /2
n n
30
H 0 : 0 H 0 : 0 H 0 : 0
H a : 0 H a : 0 H a : 0
p-Value Approach
Step 4. Use the value of the test statistic to compute
the p-value.
Step 5. Reject H0 if p-value < .
32
Command:
Z.TEST(array,x,[sigma])
H 0 : 0
H a : 0
41
H0:
H : ≠
45
Modification
Command: 2 * MIN(p Value, 1 – p Value).
Z.TEST(array,x,[sigma])
•Array Required. The array or range of data against which to
test x.
•x Required. The value to test.
•Sigma Optional. The population (known) standard deviation.
If omitted, the sample standard deviation is used.
Sample Average: 6.1
Sample Size: 30
Population Std Deviation: 0.2
At 97 % Level of Confidence
Ho: µ = 6
Ha: µ ≠ 6
47
Modification 27
Command: 2 * MIN(p Value, 1 – p Value). 25
Z.TEST(array,x,[sigma]) 23
26
•Array Required. The array or range of data against which to 20
test x. 22
•x Required. The value to test. 19
28
•Sigma Optional. The population (known) standard deviation.
23
If omitted, the sample standard deviation is used.
16
27
Population Std Deviation: 4.394 23
At 95 % Level of Confidence 24
19
Ho: µ = 20 22
21
Ha: µ ≠ 20 28
12
17
26
48
At 95 % Level of Confidence
Ho: µ = 4
Ha: µ ≠ 4
50
Thank You!
???