STATISTICS
Statistics is the branch of mathematics that deals with the collection, analysis, interpretation,
presentation, and organization of data. Two types. Descriptive and Inferential.
Explain the Central Limit Theorem (CLT).
The Central Limit Theorem states that the distribution of sample means approaches a normal
distribution as sample size increases, regardless of the population's shape.
What are Type I and Type II errors?
Type I error occurs when the null hypothesis is rejected when it is true (false positive).
Type II error occurs when the null hypothesis is not rejected when it is false (false negative).
Basics of Probability
Mean: The average of a set of numbers, calculated by summing all values and dividing by the
number of values.
Standard Deviation: A measure of the dispersion or spread of a set of values, indicating how
much individual values deviate from the mean.
Distributions: Describes the frequency or probability of different outcomes in a dataset or
experiment.
Normal Distribution: A bell-shaped distribution that is symmetric around the mean, with most
values clustering around the center.
Binomial Distribution: Describes the number of successes in a fixed number of independent
trials, each with the same probability of success.
Poisson Distribution: Represents the probability of a given number of events occurring in a fixed
interval of time or space.
Random Variables: Variables whose values are outcomes of a random phenomenon, classified
as discrete (taking specific values) or continuous (taking any value within a range).
Basics of Statistical Inference
Confidence Interval: A range of values, derived from sample data, within which the true
population parameter is expected to lie with a certain level of confidence (e.g., 95% confidence
interval).
Hypothesis Testing: A method of making decisions or inferences about population parameters
based on sample data. It involves:
Null Hypothesis (H0): A statement of no effect or no difference, which is tested against the
alternative hypothesis.
Alternative Hypothesis (H1): A statement that indicates the presence of an effect or difference.
p-value: The probability of observing the sample data, or something more extreme, if the null
hypothesis is true. A low p-value (typically < 0.05) leads to the rejection of the null hypothesis.
Linear Regression: A statistical method used to model and analyze the relationship between a
dependent variable and one or more independent variables by fitting a linear equation to observed
data.
1. Real-World Applications:
o include A/B testing in marketing, quality control in manufacturing, or risk assessment in
finance.
2. Statistical Software Proficiency:
o statistical software such as R, Python (with libraries like pandas, NumPy, and SciPy),
SAS, SPSS, or Excel. Be prepared to discuss your experience and provide examples of
how you've used these tools.