Eco 72

Things to Know for Midterm


Topic 1: Intro to Data

  • The difference between descriptive and inferential statistics
  • The difference between nominal (category), ordinal, and ratio data


Topic 2: Measures of Central Tendency

  • Given a sample or a population, be able to calculate the mean, weighted mean, median, and mode, using the cheat sheet if necessary.
  • Know the advantages and disadvantages of the mean (information from all observations is used; it is unique; the sum of deviations from the mean is zero; works only on ratio data); the median (unique; not influenced by outliers; works on ordinal or ratio data); and the mode (works on any kind of data; may not be unique).


Topic 3: Measures of Dispersion

  • Given a sample or a population, be able to calculate the range, variance, standard deviation, mean absolute deviation, and interquartile range, using the cheat sheet if necessary.
  • Know how to make statements with Chebyshev's theorem
  • Know advantages and disadvantages of range (simple to compute and understand; heavily influenced by outliers); mean absolute deviation (uses info from all observations; not heavily influenced by outliers); variance (all observations are used; not too influenced by outliers).
  • Know the difference between positive skew (tail on the right, mean>median) and negative skew (tail on left, median>mean).


Topic 4: Probability

  • Know meanings of: Mutually exclusive, independent, conditional probability; event; sample space.
  • Be able to use addition and multiplication rules to calculate the probability of one event from the probability of another, given enough information, using the cheat sheet if necessary.  Also, be able to recognize and calculate conditional probability.
  • Be able to use combination and permutation rules to calculate number of possible combinations or permutations in a scenario, using the cheat sheet if necessary.


Topic 5: Discrete Random Variables

  • Be able to calculate the mean and variance of a discrete random variable, given a probability distribution table.
  • Be able to calculate the mean and variance of a binomial distribution given n and p, as well as the probability of observing a value k, using the cheat sheet if necessary; be able to recognize n, p, and k from a given scenario, and know when the binomial distribution is appropriate
  • Be able to calculate the probability that a Poisson variable takes on a certain value, using the cheat sheet if necessary; and recognize from a scenario when the Poisson distribution is appropriate and which lambda (aka mu) to use.

Topic 6: The Normal Distribution

  • Given a mean and a standard deviation, be able to calculate the probability that a Normally distributed variable is between two numbers.
  • Given a Binomial variable with a large n and moderate p (such that np> 5 and n(1-p) > 5 -- know these conditions), be able to use the Normal distribution to calculate the probability that it is between two numbers.