stats - unit 2

• Central Limit Theorem Rules:

  1. the distribution of means will approximate a normal distribution for a large sample size
  2. the mean of the distribution of means approaches the population mean for large sample sizes
  3. the standard deviation of the distribution of means approaches stdev/(sqrt of n) for large sample sizes
• fair - equal chances of all rolls, not rigged towards a specific outcome
• when the difference between what is observed and what is expected seems unlikely to be explained by chance alone, we say that this difference is statistically significant
• if the chance/probability of an observed difference, from what is expected, is 0.05 (1/20), we say that the difference is statistically significant at the 0.05 level
• outcome - most basic possible results of observations or experiments
• event - one or more outcomes that share a property of interest, ex in coin flipping a property is heads
• theoretical probability method - probability of an event is calculated by multiplying the probability of each possible outcome
• observing count/relative frequency probability method - using past data to predict the probability of an event happening in the future
• subjective/intuitive probability method - using speculation to decide how much of a probability something has
• complement - probability of something not happening
• the probability of one thing happening and the probability of the same thing not happening is always equal to 1