14. Statistical Techniques in Business & Economics (5)

5 ­ 1. A Survey of. ConceptsCopyright © 2004 by The McGraw­Hill Companies, Inc. All rights reserved. 5 ­ 2. When you have completed this chapter, you will be able to: 1 Explain the terms random experiment, . outcome, sample space, permutations, . and combinations 2 Define probability 3 Describe the classical, empirical, and subjective . approaches to probability 4 Explain and calculate conditional probability . and joint probability. .Copyright © 2004 by The McGraw­Hill Companies, Inc. All rights reserved. 5 ­ 3. Calculate probability using the rules of . 5. addition and rules of multiplication. 6 Use a tree diagram to organize and . compute probabilities 7 Calculate a probability using Bayes’ theoremCopyright © 2004 by The McGraw­Hill Companies, Inc. All rights reserved. Types of Statistics. Types of Statistics 5 ­ 4. Descriptive. Descriptive Inferential. Inferential. Methods of Science of . Science of . collecting making inferences . making inferences . organizing about a population, . about a population, . presenting based on . based on . and sample . sample . information information analyzing data. Emphasis now to be on this!. Emphasis now to be on this!.Copyright © 2004 by The McGraw­Hill Companies, Inc. All rights reserved. Terminology. 5 ­ 5 Probability. is a measure of the . is a measure of the . likelihood that an event in the future will happen!. likelihood that an event in the future will happen! It can only assume a value between 0 and 1 A value near zero means the event is not .likely happen;