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DMA midterm

expected value long run average, EV is the weighted average of all possible outcomes, where a weight is the probability of an outcome occurring
mean the average
standard deviation the spread out the individual data points are
risk profile shows % distribution of risk and important for 1 time decisions
value of information ev with info - ev without info
normal distribution symetric n thing, calculates to the left
NORM.DIST (x,mean,stdev,1)
confidence interval % of confidence with a specific range (standard error) = coefficient +- (2 x SE) Within 2 standard deviations, there is a 95% confidence interval 1 SD - 67% 3 SD - 99%
regression equation = intercept coeff + (coeff x point) + (coeff x point) + ...
intercept yeild when all predictors are 0
p-value the significance of the category. significant if < 0.05. ( E- means very small # in excel)
standard error how precise the coeff is [confidence interval = coefficient +- (2 x SE) ]
R^2 how much change in the dependent is affected by the independent
adjusted R^2 adjusts how much change in the dependent is affected by the independent for how many independents there are
dummy variable 0 or 1 - it is yes or no, one or the other
interaction variables when 2 variables are considered together and combined have an extra positive or negative affect
scatterplot A scatterplot is the correct type of chart to visualize relationships.
histogram A histogram shows a distribution of a single variable.
sets A set is simply a list of all the possible things that could happen
the law of large numbers As the number of tosses grows, the observed outcomes will reflect that truth
Created by: ealt1
 

 



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