Statistics 101 Review
Answer the following questions:
1.
What is the mean in plain English?
2.
What is the standard deviation in plain English?
3.
What is the major difference between population standard deviation and sample
standard deviation?
4.
What is the covariance in plan English?
5.
What is the correlation coefficient in plan English?
6.
What is the regression or least square method in plain English?
7.
Suppose Mike is an outstanding finance student, who does homework regularly,
comes to classes everyday, reads Wall Street Journal, and often asks challenging
questions in class. However, he feels that he is not the best student in the marketing class.
He does not have the same level of confidence in marketing class as he does in finance
class. He even consumed two cans of beer two hours before the first marketing test,
spent quality time on dance floors in the Sixth Street in Downtown Austin the day before
the second test, and often asks a question like “Is there any important stuff I missed from
last class (that I missed because of a heavy hang over from the previous night)? His test
performances for both classes are as follows:
Test No.
One
Two
Three
Four
Final
Finance test scores
92
89
85
91
93
Marketing test scores
59
72
78
64
61
Answer the following question using HP 10BII calculator. Check out our class web
site for finding how to operate HP 10 BII calculators to find mean, standard
deviations, correlation, and regression slope. Focus on statistics operations. I advise
you not to use Microsoft Excel spreadsheet for this assignment because I want you to
know how to compute these statistics by calculator or hand first. We will learn Excel
later.
a.
Find means for finance and marketing test scores using HP calculator.
b.
Find standard deviations for finance and marketing test scores using HP
calculator. Report both population and sample standard deviations.
c.
Find covariance between finance and marketing test scores using HP
calculator. Note: Use the formula from the book.
d.
Find correlation coefficient between finance and marketing test scores
using HP calculator.
e.
Suppose finance scores is y-variable and marketing scores is x-variable.
Find the regression slope and intercept using HP calculator.