RECAP - STATISTICS FOR ECONOMETRICS

What is the main purpose of descriptive statistics?

• To summarize and describe the basic features of a dataset.

• To identify outliers and anomalies in a dataset.

• To determine causality between variables in a dataset.

• To predict future outcomes based on past data.

Which statistical method is used to make predictions or inferences about a population based on a sample?

• Descriptive Statistics

• Inferential Statistics

• Predictive Analytics

• Sample Statistics

Which of the following is not a measure of central tendency?

• Median

• Mean

• Range

• Mode

What is the process of making decisions or drawing conclusions about a population based on sample data?

• Statistical analysis

• Data interpretation

• Statistical inference

• Sample extrapolation

What is the formula for calculating the mean?

• Sum of all values * Total number of values

• Sum of all values / Total number of values

• Sum of all values - Total number of values

• Total number of values / Sum of all values

Define standard deviation.

• Standard deviation is a measure of central tendency

• Standard deviation is a measure of correlation

• Standard deviation is a measure of the amount of variation or dispersion of a set of values.

• Standard deviation is a measure of probability

Explain the concept of p-value in hypothesis testing.

• The p-value is always equal to 0.05 in hypothesis testing.

• The p-value in hypothesis testing represents the probability of obtaining results at least as extreme as the observed results, assuming the null hypothesis is true.

• The p-value is the same as the significance level.

• The p-value represents the strength of the alternative hypothesis.

Calculate the median of the following data set: 10, 15, 20, 25, 30

• 18

• 28

• 20

• 22

State the null hypothesis in a hypothesis testing scenario.

• The null hypothesis always proves to be correct

• The null hypothesis is always rejected

• The null hypothesis states that there is no significant difference or relationship between specified variables.

• The null hypothesis is never tested

Central Limit Theorem, Skewness and Kurtosis is the