Statistics How To

Design of Experiments > Ecological Validity What is Ecological Validity? Ecological validity answers the question: “are your study results generalizable across different settings?” In other words, if you took your study to different locations (i.e. outside the test setting), would you still get the same results? Sterile lab environments are helpful for controlling variables in … Read more

Probability and Statistics > Regression Analysis > Standardized Beta Coefficient What is a Standardized Beta Coefficient? A standardized beta coefficient compares the strength of the effect of each individual independent variable to the dependent variable. The higher the absolute value of the beta coefficient, the stronger the effect. For example, a beta of -.9 has … Read more

Statistics Definitions > Business Statistics What is Business Statistics? Business statistics takes the data analysis tools from elementary statistics and applies them to business. For example, estimating the probability of a defect coming off a factory line, or seeing where sales are headed in the future. Many of the tools used in business statistics are … Read more

Time Plot > You may want to read this article first: What is order of integration? Cointegration tests analyze non-stationary time series— processes that have variances and means that vary over time. In other words, the method allows you to estimate the long-run parameters or equilibrium in systems with unit root variables (Rao, 2007). Two … Read more

Types of Graphs > Minimum Spanning Tree Contents: What is a Minimum Spanning Tree? Finding Minimum Spanning Trees Kruskal’s Algorithm Prim’s algorithm Boruvka’s algorithm (new window) Real life applications for MSTs. What is a Minimum Spanning Tree? A minimum spanning tree is a special kind of tree that minimizes the lengths (or “weights”) of the … Read more

Statistics Definitions > Semantic Differential Scale The semantic differential scale measures the connotative meaning of things. For example, while the word “heart” is defined as the organ that pumps blood around the body, it’s connotative meaning is love or heartache. The scale is used in surveys to gauge people’s feelings towards a particular subject. Denotation … Read more

Statistics Definitions > The Pygmalion Effect Contents: What is the Pygmalion Effect? History The Rosenthal Effect The Pygmalion Effect Examples In Education In Higher education In Science In Literature In Organizations and Business What is the Golem Effect? 1. What is the Pygmalion Effect? The Pygmalion Effect (also called the Galatea effect) originates with researchers … Read more

Statistics Definitions > RFM (Customer Value) RFM and Customer Value RFM stands for “Recency, Frequency, Monetary” and is a way to figure out who your most valuable customers are. For example, a customer who spent $1,000 three times in the last month is a lot more valuable than a customer who spent $100 once in … Read more

Descriptive Statistics > Pyramid Graph What is a Pyramid Graph? A pyramid graph is a chart in the shape of a triangle or pyramid. These charts are best used when your data is organized in some kind of hierarchical way. The levels indicate some kind of progressive order, like: More “important” to least important. For … Read more

Probability > Contents: What is Subjective Probability? Subjective Probability Examples in Real Life What is Subjective Probability? What is Subjective Probability? Subjective probability is where you use your opinion to find probabilities. For example: You think you have an 80% chance of your best friend calling today, because her car broke down yesterday and she’ll … Read more