Level of measurement

Scale Type Permissible Statistics Admissible Scale Transformation One to One (equality (=)) Monotonic increasing (order (<)) Positive linear (affine) nominal (also denoted as mode, Chi-squared categorical) ordinal median, percentile mean, standard deviation, correlation, regression, analysis of variance All statistics permitted for interval scales plus the following: geometric mean, harmonic mean, coefficient of variation, logarithms Mathematical structure standard set structure (unordered) totally ordered set affine line

interval

ratio

Positive similarities one-dimensional (multiplication) vector space

Nominal scale
At the nominal scale, i.e., for a nominal category, one uses labels; for example, rocks can be generally categorized as igneous, sedimentary and metamorphic.

Ordinal scale
Rank-ordering data simply puts the data on an ordinal scale. Ordinal measurements describe order, In this scale type, the numbers assigned to objects or events represent the rank order (1st, 2nd, 3rd, etc.) of the entities assessed. An example of an ordinal scale is the result of a horse race,

Interval scale
Quantitative attributes are all measurable on interval scales, as any difference between the levels of an attribute can be multiplied by any real number to exceed or equal another difference. A highly familiar example of interval scale measurement is temperature with the Celsius scale.

Ratio scale
Most measurement in the physical sciences and engineering is done on ratio scales. Mass, length, time, plane angle, energy and electric charge are examples of physical measures that are ratio scales.

Hypothesis Testing
Hypothesis testing is the use of statistics to determine the probability that a given hypothesis is true. The usual process of hypothesis testing consists of four steps. 1. Formulate the null hypothesis and the alternative hypothesis 2. Identify a test statistic 3. Compute the P-value 4. Compare the -value to an acceptable significance value The alternative hypothesis is the hypothesis used in hypothesis testing that is contrary to the null hypothesis. It is usually taken to be that the observations are the result of a real effect (with some amount of chance variation superposed). Example Manufacturer of cigarette brand claims avg nicotine content does not exceed 2.5mg. and shud be accepted if u is less than or equal to 2.5mg Therfore Null: Ho : u =2.5 Alernate H1 : u >2.5 Purpose OF Hypothesis testing is not to question the computed value of the sample statistic but to make a judgement about the difference between the sample statistic and a hypothesized population parameter.

10. TYPES OF ANALYSIS Univariate analysis

is carried out with the description of a single variable and its attributes of the applicable unit of analysis. It is also used primarily for descriptive purposes, It is commonly used in the first stages of research It describes central tendency - mean, mode, median dispersion - range, variance, max, min, quartiles, standard deviation

Bivariate analysis
involves the analysis of two variables for the purpose of determining the empirical relationship between them. The purpose of a bivariate analysis is the analysis of the relationship between the two variables.(Dependant&Independant) For example, a bivariate analysis intended to investigate whether there is any significant difference in earnings of men and women might involve creating a table of percentages of the population within various categories, using categories based on gender and earnings:

Multivariate analysis
is based on the statistical principle of multivariate statistics, which involves observation and analysis of more than one statistical variable at a time. In design and analysis, the technique is used to perform trade studies across multiple dimensions while taking into account the effects of all variables on the responses of interest.

Uses for multivariate analysis include:

Design for capability Inverse design, where any variable can be treated as an independent variable Analysis of Alternatives (AoA), the selection of concepts to fulfill a customer need Analysis of concepts with respect to changing scenarios Identification of critical design drivers and correlations across hierarchical levels.

7. CHI-SQAURE
A chi-squared test, also referred to as chi-square test or test, is any statistical hypothesis test in which the sampling distribution of the test statistic is a chi-squared distribution when the null hypothesis is true, or any in which this is asymptotically true, Pearson's chi-squared test, also known as the chi-squared goodness-of-fit test or chisquared test for independence The test we use to measure the differences between what is observed and what is expected according to an assumed hypothesis is called the chi-square test The chi square test can only be used on data that has the following characteristics: i.) The data must be in the form of frequencies ii.) The frequency data must have a precise numerical value and must be organised into categories or groups. iii.) The expected frequency in any one cell of the table must be greater than 5. iv.) The total number of observations must be greater than 20 Formula for Chi-squared :

2 = (O E)2 E Where: 2 = The value of chi square O = The observed value E = The expected value (O E)2 = all the values of (O E) squared then added together

A type I error, also known as an error of the first kind, is the wrong decision that is made when a test rejects a true null hypothesis (H0). A type I error may be compared with a so called false positive in other test situations. A type II error, also known as an error of the second kind, is the wrong decision that is made when a test fails to reject a false null hypothesis. A type II error may be compared with a so-called false negative in other test situations. True State of the Null Hypothesis H0 True Type I error Correct H0 False Correct Type II error

Statistical Decision Reject H0 Do not Reject H0

The probability of a Type I error is designated by the Greek letter alpha ()the probability of a Type II error is designated by the Greek letter beta ()

11. Correlation is a statistical measurement of the relationship between two variables. Possible correlations range from +1 to 1. A zero correlation indicates that there is no relationship between the variables. A correlation of 1 indicates a perfect negative correlation, meaning that as one variable goes up, the other goes down. A correlation of +1 indicates a perfect positive correlation, meaning that both variables move in the same direction together.