Statistics

Allison TothOlivia Stephens

Hayley Hunt

Expected Value

• If you hold 1 of 100 tickets for a prize worth $700, what is the value of the

• ticket? The probability of winning $700 is and the probability of winning $0 is 0.99. If the lottery were repeated many times, 1% of the time you would win $700 and 99% of the time you would win nothing. In the long run your average gain would be 0.01(700) + .99(0) = $7.00

• This is expected value of the experiment. 2

Measures of Central Tendency

• A fancy way of saying “average”• Common kinds of averages–Mean–Median–Mode

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Normal Distribution

• Normally distributed data clusters about the mean–Mean, median and mode are equal

• Normal Curve

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Measures of Variability

• Two types:–Range–Standard Deviation• The average distance of a data point from the mean

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