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Understanding Inferential Statistics

The document provides an overview of inferential statistics, covering key concepts such as population, sample, hypotheses, and various statistical tests including parametric and non-parametric tests. It explains the differences between null and alternative hypotheses, as well as detailing tests like T-test, F-test, ANOVA, and Chi-square test. Additionally, it discusses sampling errors, biases, and the importance of understanding statistical significance in research.

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14 views15 pages

Understanding Inferential Statistics

The document provides an overview of inferential statistics, covering key concepts such as population, sample, hypotheses, and various statistical tests including parametric and non-parametric tests. It explains the differences between null and alternative hypotheses, as well as detailing tests like T-test, F-test, ANOVA, and Chi-square test. Additionally, it discusses sampling errors, biases, and the importance of understanding statistical significance in research.

Uploaded by

yamini
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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UNDERSTANDING

INFERENTIAL STATISTICS
DR. YAMINI NEGI

LECTURER – ACCOUNTANCY & TAXATION

CONTACT NO: 9873471411

EMAIL ID: YAMINI142000@GMAIL.COM


AGENDA:

• Concept of Population
• Concept of Sample
• Null and alternative hypothesis
• Parametric tests: T test, F-test, ANOVA
• Non parametric tests
POPULATION VS SAMPLE:

• A population refers to the entire set of


individuals or objects that we are interested in
studying and drawing conclusions about. It can
be large or small depending on the scope of the
research. (N)

• A sample is a representative portion of the


population from which we collect data in order
to make inferences or draw conclusions about
the entire population. (n)
TERMINOLOGY:
Population Parameter:
It is a numerical characteristic of a population like population mean, population variance and population standard deviation.
Sample Statistic:
A sample statistics is a numerical characteristics of a sample like sample mean, sample variance and sample standard deviation.

Sampling error:
It is the difference between a sample statistics and the corresponding population parameter. It occurs to randomness in the
selection of the sample.
Sampling bias:
It occurs when a sample is not representative of the population. It can lead to inaccurate conclusions about the population.
HYPOTHESIS:

Null Hypothesis (H0):

A null hypothesis is a type of statistical hypothesis that proposes that no statistical


significance exists in a set of given observations and is used to assess the credibility of a
hypothesis by using sample data.

Alternative Hypothesis:

It is a direct contradiction of a null hypothesis. This means that if one of the two hypotheses is
true, other is false. In other words, it states that there is a statistically significant relationship
exists between two variables.
TYPE- I AND TYPE –II ERROR:
PARAMETRIC & NON PARAMETRIC
TESTS:
• It is a statistical test, in which specific assumptions are made about the
population distribution from which the sample is drawn. Parametric tests can be
used if the data is normally distributed. If the data is normally distributed,
parametric tests such as t-test, ANOVA or Pearson correlation are used.

• If the data is not normally distributed, the non parametric tests are used like
Mann-Whitney U-test or the Wilcoxon test.
T-TEST:
• T-test is an inferential statistic used to determine if there is a significant difference
between the means of two groups and how they are related.

• It is used in hypothesis testing, with a null hypothesis that the difference in group
means is zero and an alternate hypothesis that the difference in group means is different
from zero.

• Types of T-test: (a) One sample t-test (reference value) (b) Two sample t-test (c) Paired
sample t-test.
F –TEST:

• It is used in hypothesis testing to check whether the variances of two populations or


two samples are equal or not.
• In an f test, the data follows an f distribution. This test uses the f statistic to compare
two variances by dividing them. It is the basis of ANOVA.
• It is used for independent samples involving three or more groups.
• Common types of F-test include one way ANOVA and Two-way ANOVA.
• F Statistic is calculated by dividing the variance of one group by variance of another
group.
• F critical value is calculated by using degrees of freedom for 2 groups and alpha level.
ANOVA:

• ANOVA is used to compare the means of multiple groups. It uses F-


tests to statistically test the equality of means.
• I can be of One way ANOVA (one independent and one dependent
variable) and Two way ANOVA (2 independent variables).
• In Two factor ANOVA, depending upon the data in the group, one can go
with ANOVA two factor with replication and ANOVA two factor without
replication.
ANCOVA:

• It analyzes the differences between three or more group means while


controlling for the effects of at least one continuous variable.
• Covariance measures the joint variability between two variables.
• Covariances measures direction (+/-): how do large/small values in one
variable compare to large/small in the other.
CHI-SQUARE TEST:

• The chi-square test is a statistical procedure for determining the


difference between observed and expected data.
• It is used to test the goodness of fit i.e. to test if the frequency
distribution of a categorical variable is different from your expectations.
• It is used to test the independence of attributes i.e. to check if two
categorical variables are related to each other.
SIGN TEST:

• Sign test is used to test for consistent differences between pairs of


observations such as marks of students before and after training (in
place of t-test if distributional conditions are suspected)
• A sign test is a non parametric test that is used to determine whether a
population median is equal to some value.
MEDIAN TEST:

• It is used to determine if there is a difference between two independent


samples even with unequal sample size.
• It is used to test whether two or more independent groups differ in
central tendency – specifically whether the groups have been drawn
from a population with the same median.
Thank
You

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