Paragas, Lindsey B.

BS ECONOMICS 2-A

MATHEMATICAL STATISTICS

1. Weighted Mean

Weighted Mean is an average computed by giving different weights to some of the

individual values. If all the weights are equal, then the weighted mean is the same as the
arithmetic mean. It represents the average of a given data. The Weighted mean is similar to the
arithmetic mean or sample mean.

The weighted mean is a type of mean that is calculated by multiplying the weight (or
probability) associated with a particular event or outcome with its associated quantitative
outcome and then summing all the products together.

Weighted mean average is a statistical method used in quantitative research to determine

consensus values by assigning weights to different data points based on their importance or
reliability.

(EXAMPLE)

Weighted means are useful in a wide variety of scenarios in our daily life. For example, a
student uses a weighted mean in order to calculate their percentage grade in a course. In such a
case, the student has to multiply the weighing of all assessment items in the course (e.g.,
assignments, exams, projects, etc.)

2. Independent T-Test

The independent t-test, also called the two sample t-test, independent-samples t-test or
student’s t-test, is an inferential statistical test that determines whether there is a statistically
significant difference between the means in two unrelated groups. The Independent Samples T-
Test compares the means of two independent groups in order to determine whether there is
statistical evidence that the associated population means are significantly different. The
Independent Samples t Test is a parametric test. This test is also known as: Independent T-Test.

The independent-measures t-test (or independent t-test) is used when measures from the
two samples being compared do not come in matched pairs. The requirement for Variance
homogeneity test may be measured with Levene’s test.

For quantitative data (numerical measurements) we use t-tests but they cannot be used for
qualitative data (non numerical).
(EXAMPLE)

You could use an independent t-test to understand whether first year graduate salaries
differed based on gender (i.e., your dependent variable would be “first year graduate salaries”
and your independent variable would be “gender”, which has two groups: “male” and “female”).

3. One Sample T-Test

The one sample t-test, also referred to as a single sample t-test, is a statistical hypothesis
test used to determine whether the mean calculated from sample data collected from a single
group is different from a designated value specified by the researcher.

In a One Sample T-Test, the test variable’s mean is compared against a “test value”,
which is a known or hypothesized value of the mean in the population. Test values may come
from a literature review, a trusted research organization, legal requirements, or industry
standards.

For quantitative data (numerical measurements) we use t tests but they cannot be used for
qualitative data (non numerical).

(EXAMPLE)

The one-sample t-test is used when we want to know whether our sample comes from a
particular population but we do not have full population information available to us. For
instance, we may want to know if a particular sample of college students is similar to or different
from college students in general.

4. Chi-Square

A chi-square (χ2) statistic is a measure of the difference between the observed and
expected frequencies of the outcomes of a set of events or variables. Chi-square is useful for
analysing such differences in categorical variables, especially those nominal in nature.

The chi-square test statistics are valid if the sample size is large and the sample is
selected by simple random sampling with replacement (SRSWR) method. But in practice
complex survey designs involving stratification, clustering, and unequal probability sampling are
used for collection of data.

For qualitative data we use Chi-Squared (χ2 ) Tests.

(EXAMPLE)

By comparing observed and expected frequencies, it helps us make informed decisions

about relationships within datasets. Real-world examples, like medical treatment effectiveness
and user preferences, highlight how the Chi-Square Test can provide valuable insights for
decision-making in various fields.

5. Pearson’s Correlation

The Pearson correlation measures the strength of the linear relationship between two
variables. It has a value between -1 to 1, with a value of -1 meaning a total negative linear
correlation, 0 being no correlation, and + 1 meaning a total positive correlation.

The Pearson correlation coefficient (r) is the most common way of measuring a linear
correlation. It is a number between –1 and 1 that measures the strength and direction of the
relationship between two variables. When one variable changes, the other variable changes in the
same direction.

A Pearson’s correlation is used when the two statistics we want to analyze are both
quantitative. This means we will be comparing quantitative variables to find a linear relationship
(if the variables represent a nonlinear relationship, a correlation is not appropriate).

(EXAMPLE)

Pearson correlation is used in thousands of real-life situations. For example, scientists in

China wanted to know if there was a relationship between how weedy rice populations are
different genetically. The goal was to find out the evolutionary potential of the rice.

6. ANOVA

ANOVA stands for Analysis of Variance. It is a statistical method used to analyze the
differences between the means of two or more groups or treatments. It is often used to determine
whether there are any statistically significant differences between the means of different groups.

One-Way ANOVA (“analysis of variance”) compares the means of two or more

independent groups in order to determine whether there is statistical evidence that the associated
population means are significantly different. One-Way ANOVA is a parametric test. This test is
also known as: One-Factor ANOVA.

Although ANOVA is a regression technique, the independent variable(s) in ANOVA are

qualitative data analysis rather than quantitative. The dependent variable is quantitative in both
regression and ANOVA. The term “ANOVA” refers to analysing the relationship between two
groups: the independent and dependent variables.

(EXAMPLE)
 Medical: Researchers are often interested in whether or not different medications affect
patients differently, which is why they often use one-way or two-way ANOVA’s in these
situations. Environmental Sciences: Researchers are often interested in understanding how
different levels of factors affect plants and wildlife.