Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Inferential Statistics


Published on

This presentation forms part of a free, online course on analytics

Published in: Data & Analytics
  • Be the first to comment

  • Be the first to like this

Inferential Statistics

  1. 1. Inferential Statistics Anthony J. Evans Professor of Economics, ESCP Europe (cc) Anthony J. Evans 2019 |
  2. 2. Overview 2 • Using group data to describe the group Descriptive statistics • Using group data to infer about the population Inferential statistics
  3. 3. Inferential statistics 3 Confidence intervals Confidence intervals Significance tests For estimating a population parameter To assess the evidence provided by the data regarding some claim about the population The two main things that we cover in inferential statistics are: Both methods are based on sampling distributions, with the underlying assumption that the sample data comes from a randomised experiment. Any faults of the experiment will impact the validity of the conclusions. Always remember that uncertainty still exists, outside the model.
  4. 4. X Files • In The X Files episode "D.P.O” five people are seemingly struck by lightning in the same small town. • It could be a coincidence. Unlikely events can occur in quick succession for purely random reasons. • However Mulder and Scully believe that it is so improbable it isn't down to chance. Rather, there is something happening that explains these events. • This is the essence of conducting probability tests - are the events that we witness the result of chance, or are they evidence that there is an underlying cause? • We cannot really ever prove anything, but we can amass evidence that makes it more and more convincing. 4The X Files, Season 3 Episode 3. Watch here:
  5. 5. • This presentation forms part of a free, online course on analytics • 5