Key statistical concepts

Overview

Predictive analytics involves a wide range of statistical tools and methods that allow an analyst to develop a strong predictive model. Exploring the importance of statistics and probability theory in predictive analytics

Objectives

• Recognizing the role of statistics in predictive analytics
• Recognizing the attributes of qualitative, quantitative, discrete, and continuous data
• Recognizing the characteristics of data measurement scales
• Recognizing characteristics and types of probabilistic events
• applying addition and multiplication rules to a probabilistic event
• applying the Bayes theorem in a given situation
• differentiating between permutations and combinations
• recognizing how to reduce the margin of error
• recognizing how confidence intervals (II ) are used to test the assumptions
• to recognize the main features of the test for differences in mean and the test for differences in proportion
• to determine whether a sample of data is representative active for the data population