Category: Stats

Simple Linear Regression
Simple Linear Regression
Creating a simple Linear regression model and preparing for multilinear 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
Significance Tests (normal distribution assumed) Groups Requirements Test Tails Statistic Distribution Degrees of freedom Example 1 normal dist, n > 30 and known variance ztest 1 and 2 zscore 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…

TTest
TTest
In business, the most commonly used ttest is often the Independent TwoSample ttest. 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 TwoSample ttest is particularly useful in various business scenarios, such as: Purpose: Example: 2. Independent…