Combinations and Permutations
Combinations and Permutations
Combinations and Permutations
COUNTING METHODS
NORMAL DISTRIBUTIONS
𝑋~𝑁(𝜇; 𝜎 2 )
Note:
• Changing the mean shifts the entire curve left or right on the horizontal axis
• Changing the standard deviation either squeezes or spreads out the
distribution along the horizontal axis
CONFIDENCE INTERVALS
Point estimate ± margin of error
Common confidence levels and their associated critical 𝑍-values:
Confidence Level 90% 95% 98% 99%
Critical 𝑍-Value 1,645 1,960 2,326 2,576
HYPOTHESIS TESTING
HYPOTHESIS TEST FOR A POPULATION MEAN
Setting up 2 hypotheses:
𝐻0 : null hypothesis (No change, what is expected, historical value) Must have =
𝐻1 : alternate hypothesis
• ≠ → 2-tailed test • < ; > →1-tailed test
• < left tail test
• > right tail test
Level of significance = 𝛼
The test statistic is a 𝑍-value calculated from the sample data:
• 𝑥̅ is the sample mean
̅ − 𝝁
𝒙
𝒁= • 𝜇 is the population mean, value from 𝐻0
𝝈
• 𝜎 is the standard deviation of the population
√𝒏
• 𝑛 is sample size
If the test statistic 𝒁-value is found to lie in a rejection region then the sample has
provided sufficient evidence against 𝐻0
→ reject 𝑯𝟎 in favour of 𝑯𝟏
Conclusion: Reject 𝑯𝟎 at the _% level of significance and suggest sufficient evidence
to support the claim.
If the test statistic 𝒁-value is found to lie outside the rejection region (in the
acceptance region) then the sample has provided insufficient evidence against 𝐻0
→ fail to reject 𝑯𝟎
Conclusion: Fail to reject 𝑯𝟎 at the _% level of significance and suggest insufficient
evidence to support the claim.
Null hypothesis:
There is no difference between the two populations or that there is some
established/known exact difference between them (𝑎).
𝐻0 : 𝜇𝑥 = 𝜇𝑦 ⇒ 𝜇𝑥 − 𝜇𝑦 = 0 or 𝐻0 : 𝜇𝑥 − 𝜇𝑦 = 𝑎
Alternate hypothesis:
There is a difference between the two means
𝐻1 : 𝜇𝑥 ≠ 𝜇𝑦 ⇒ 𝜇𝑥 − 𝜇𝑦 ≠ 0
Or
Mean of population 𝑋 is greater than that of 𝑌 (Right tail)
𝐻1 : 𝜇𝑥 > 𝜇𝑦 ⇒ 𝜇𝑥 − 𝜇𝑦 > 0
Or
Mean of population 𝑋 is less than that of 𝑌 (Left tail)
𝐻1 : 𝜇𝑥 < 𝜇𝑦 ⇒ 𝜇𝑥 − 𝜇𝑦 < 0
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