Category: Stats

  • Simple Linear Regression

    Simple Linear Regression

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    Creating a simple Linear regression model and preparing for multi-linear regression. In this example, we use a sample of marketing spend data vs. sales and inspect the correlation between radio spend and total sales. The regression line is fitted using the ols function from statsmodels.formula.api Results return from the model.summary() method from the OLS (ordinary…

  • Statistical Testing

    Statistical Testing

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    Significance Tests (normal distribution assumed) Groups Requirements Test Tails Statistic Distribution Degrees of freedom Example 1 normal dist, n > 30 and known variance z-test 1 and 2 z-score Normal NA A sample of the population is tested for height. Do they match the known population?Population mean and standard deviation are known, sample > 30…

  • T-Test

    T-Test

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    In business, the most commonly used t-test is often the Independent Two-Sample t-test. This test is widely utilized to compare the means of two independent groups or samples to determine if there is a significant difference between them. The Independent Two-Sample t-test is particularly useful in various business scenarios, such as: Purpose: Example: 2. Independent…