Topic: Statistics

Big Data and the Role of the Data Scientist

The latest adventurers are into analysing Big Data to get invaluable nuggets of insights. They scour the vast tracts of data, wrangle with it, clean it and analyse it to arrive at insights that a small data set can never reveal. Genomics, physics, Internet marketing...

What is Hypothesis Testing

Many a times, we want to test the validity of a statement. For example, is the mean return from this mutual fund more to the mean return from the benchmark? While answering such a question, our interest is not to find the actual mean returns of the mutual fund, but to...

How to Read Student’s t Distribution Table (With PDF)

Student’s t distribution table has the following structure: The row represents the upper tail area, while the column represents the degrees of freedom. The body contains the t values. Note that for on-tail distribution the values are for a and for two-tailed...

How to Construct a Frequency Distribution

The statistical data that we collect can be presented in the form of a frequency distribution. A frequency distribution refers to summarizing a large data set into a small number of intervals. Let’s take an example to understand how to construct a frequency...

Best Linear Unbiased Estimator (B.L.U.E.)

The Need There are several issues when trying to find the Minimum Variance Unbiased (MVU) of a variable. The Probability Density Function (PDF) is not known It is difficult to model the PDF Even in cases where the PDF is known it is difficult to arrive at the estimate...

Linear Combinations of Random Variables

The joint distribution of a particular pair of linear combinations of random variables which are independent of each other is a bivariate normal distribution. It forms the basis for all calculations involving arbitrary means and variances relating to the more general...

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