Statistics
Hypothesis Testing explained using practical example
There are a lot of articles/blogs that you can find on hypothesis testing. But I still feel the need to write one because when I understood Hypothesis Testing, I failed to find one that can intuitively tell real-world examples of how we can use Hypothesis Testing. Inspired by the book "Naked Statistics - Stripping the dread from the Data" by Charles Wheelan, this is my attempt to explain hypothesis testing. A hypothesis test evaluates two mutually exclusive statements about a population to…
A complete guide to the Probability Distribution
We all are aware that probability is a measure of the likelihood of an event occurring in the experiment. The value of probability ranges between 0 indicating a less probable event and 1 indicating the event being the most probable. In our post, Does probability really help businesses? we discussed how statistics can help us in solving problems and helping us to make profitable decisions. Next, let's talk about how probability distribution can help us in further demystifying the statistics.…
PMF, PDF and CDF and its implementation in Python
In our earlier post A complete guide to the Probability Distribution, we have developed a deep understanding of the different types of discrete and continuous possible probability distributions. Now, to calculate the probability of a random variable with its value equal to some value within the range, Probability Mass Function (PMF) is used. Next, let's move forward and understand how we can use PMF to calculate the probabilities of a random variable whether it is discrete or continuous.…
Does probability really help businesses?
In this post, we will start from the basics and cover what statistics really mean intuitively. And later on, we will see examples where probability is actually being used to make profitable business decisions. Let's get started. What is Statistics? Statistics is a branch of mathematics working with data collection, organization, analysis, interpretation, and presentation. There are two different statistics calculations: Descriptive or Summary Statistics - where we apply techniques to get…
Understanding Popular Statistical Tests To Perform Hypothesis Testing Is Not Difficult At All!
When you perform an analysis on a sample, you only get the statistics of the sample. You want to make claims about the entire population using sample statistics. But remember that these are just claims, so you can’t be sure if they’re true. This kind of claim or assumption is called a hypothesis. For example, your hypothesis might be that the average lead content in a food product is less than 2.5 ppm, or the average time to resolve a query at a call center is 6 minutes. Whatever your…