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Conditional- if there are two event; the second event will occur if the first event has occurred;

the INDEPENDENT and DEPENDENT Events as present Mutually exclusive- if the occurrence of any of the events does not affect the occurrence of the other

The use of statistical tools such measures of central tendencies mean, median and mode in choosing number of samples from the population

H1- alternative hypotheses; this differs from a given hypothesis Ho-null hypotheses; negative hypothesis; there is no difference

Test of significance involving sample differences- difference of means; difference of proportions Test involving the binomial distributionsadditional method

Level of Significance- maximum probability which we would be willing to risk error Normal Distribution-uses mean or variance; presence of critical and regions One tailed- two tailed tests- tail-extreme value of mean; it involves displayed corresponding scores on both side of mean Operating characteristics curves-uses graphs showing probabilities Control Charts- provide useful and simple method for dealing with problems for malfunctions in the hypotheses

Definition of 'Analysis Of Variance ANOVA'

A statistical analysis tool that separates the total variability found within a data set into two components: random and systematic factors. The random factors do not have any statistical influence on the given data set, while the systematic factors do. The ANOVA test is used to determine the impact independent variables have on the dependent variable in a regression analysis. Investopedia explains 'Analysis Of Variance - ANOVA'

The ANOVA test is the initial step in identifying factors that are influencing a given data set. After the ANOVA test is performed, the analyst is able to perform further analysis on the systematic factors that are statistically contributing to the data set's variability. ANOVA test results can then be used in an F-test on the significance of the regression formula overall.

Simple regression- if it only involves two variables Multiple regression- if it involves more than two variables

In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used in advanced portfolio management. Investopedia explains 'Correlation' In real life, perfectly correlated securities are rare, rather you will find securities with some degree of correlation.

Correlation is computed into what is known as the correlation coefficient, which ranges between -1 and +1. Perfect positive correlation (a correlation co-efficient of +1) implies that as one security moves, either up or down, the other security will move in lockstep, in the same direction. Alternatively, perfect negative correlation means that if one security moves in either direction the security that is perfectly negatively correlated will move in the opposite direction. If the correlation is 0, the movements of the securities are said to have no correlation; they are completely random. Index series- collection of index numbers

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