real number line categorical data B u s i n e s s F i n a n c e
Reply to each of the students discussion posts. the responses should be 200 words each.
Discussion board directions:
Please research and define the following terms and concepts. Define each in two or three descriptive sentences, and then at the end pose one or two questions that arose in your mind as you looked into these topics:
- Inference and confidence
- Data set
- Numerical data / categorical data
- Cross-sectional vs. time series
Discussion post made by Tania:
Population: A population is the group to be studied, and population data is a collection of all elements in the elements.
Sample: A sample is a subset of data drawn from the population of interest.
Inference: When we make inference, we draw a conclusion based on evidence that we have available. Inference is a conclusion or an opinion that is formed because of known facts or evidence.
Numerical data: A numeric data is data that is measurable, such as time, height and weight. You can identify numeric data by averaging or order the data in either ascending or descending order. Numerical data can can also be discrete or continuous.
Categorical data: Categorical data have values that are described by words rather than numbers and can also referred to as nominal or qualitative data.
Cross- sectional vs. time series: Times series data can be seen as the data that is collected from a certain time interval and thus it will represent the lengthy set of data. The cross sectional data is the data that is taken at the moment of the time thus its related to specific period.
Question: How to use these data in the research for better findings?
Discussion Post made by Lisa:
- Population – a collection of units being studied
- Sample – a collection of units from a population
- Inference – the theory, methods and practice of forming judgements about the parameters of a population and the reliability of statistical relationships, typically on the basis of random sampling
- confidence -a type of estimate computed from the statistics of the observed data. Usually the true value of the parameter can be specified before the data collection, such as the mean.
- Data set- a collection of data
- Numerical data – 2 types listed below
- Discrete – represents countable items – list may be finite or infinite
- Continuous – represents data measurement -described as intervals on a real number line
- Categorical data – a collection of data that is divided into groups, data grouped according to variables like sex, geography etc.
- Cross-sectional -compares different individuals to each other over time
- time series – a series of data points indexed in time order – can be used to see how an asset changes over time
Question: when would I use one type of data collection vs another, in what situation would one be better than the other?
Question: Wouldn’t a confidence interval be better to use to determine the best answer than an inference interval?