S2 Definitions and Things to Know

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Binomial Conditions
Fixed number of trials, each trial should be success or fail, trials are independent, probability of success is constant
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Poisson Conditions
Events must occur; Singly; Independently of each other; at a constant rate.
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Binomial to Poisson Conditions
n is large, p is small, np is less than 10
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Binomial to Normal Conditions
n is large, p is close to 0.5
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Poisson to Normal Conditions
λ is large
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Collection of individual items
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Finite Population
Each member can be given a number
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Infinite Population
impossible to number each member
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Information is obtained from every member in the population
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Advantages of Census
every member of population is used; unbiased; accurate answer
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Disadvantages of Census
long time to do; costly; difficult to ensure everyone is surveyed
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Selection of individual items from population
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Sampling survey
Investigation using a sample
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Sampling Units
Individual units of a population
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Sampling Frame
List of all sampling units
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Advantages of Sampling
If pop. is large and well mixed, sample will be representative; Sampling cheaper than census; good when testing=destruction; data more readily available
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Disadvantages of Sampling
Uncertainty due to natural variation; Bias - prevents true representation of pop.
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Population parameter
Any characteristic which is measurable
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A quantity calculated solely from the observations in a sample. There are no unknown parameters
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Sampling distribution
The probability distribution of all possible values of a test statistic, from all possible samples
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A statement about a population parameter
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Null hypothesis
A statement we assume is true unless proven not true
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Alternative hypothesis
A statement that tells us about the value of the statistic if Ho is proven wrong
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Critical Region
The range of values of the test statistic that would lead to you rejecting H0
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Critical Values
Values on the boundary of the critical region
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Hypothesis Test
A mathematical procedure to examine the value of a population parameter, proposed by the Ho compared to H1
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Actual Significance Level
Probability of incorrectly rejecting Ho
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Card 2


Poisson Conditions


Events must occur; Singly; Independently of each other; at a constant rate.

Card 3


Binomial to Poisson Conditions


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Card 4


Binomial to Normal Conditions


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Card 5


Poisson to Normal Conditions


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