QM214 - Test 2
Variance
Average of the squared differences between the observation and mean.
Sample Space
Denoted by S, contains all possible outcomes of an experiment.
Correlation Coefficient
Describes both the direction and the strength of the linear relationship between X and Y
Mutually Exclusive
Events are ___________________ __________________________ if they do not share any common outcome of an experiment.
Exhaustive
Events are ______________________ if all possible outcomes of an experiment belong to the events.
Exhaustive
Includes all outcomes in the sample space.
MAD
Mean Absolute Deviation. Average of the absolute differences between the observations and the mean.
Z-Score
Measures the relative location of the sample value, X.
Probability
Numerical value that measures likelihood. Value between 0 and 1, where a value of 0 indicates impossible events and a value of 1 indicates definite events.
Covariance
Objective numerical value that reveals the direction of the linear relationship between two variables.
Mutually Exclusive Events
Occurrence of one event precludes the occurrence of the other.
Conditional Probability
Probability of an event is conditional on the occurrence of another event.
Empirical Rule
Provides approximate percentage of observations that fall within 1, 2, or 3 standard deviations of the mean.
Coefficient of Variation
Relative measure of dispersion and adjusts for differences in the magnitudes of means. Calculated by dividing a set's standard deviation by its mean.
Event
Subset of sample space.
Independent
Two events are ________________________ if the occurrence of one event does not change the probability of the occurrence of the other event.
Dependent
Two events are __________________________ if the occurrence of one is related to the probability of the occurrence of the other.