Definitions
expectation refers to the ______ and is never a probability
long-run average
what does covariance measure?
measures strength of linear relationship between 2 random variables
higher covariance implies lower risk
false
set of events are _______ if the set of events cover the entire sample space
collectively exhaustive
when is hypergeometric distribution applicable?
circumstances involving sampling from a finite population without replacement when the outcomes can only be categorised into one of two groups, such as success or failure
when p-value<level of significance, we reject H0 (null hypothesis)
true
______ from hypothesis test tells us precisely how statistically significant the results are but we do not estimate the µ
p-value
when conducting a 2 sample test with known population variances, what assumption(s) must we make?
1. samples are randomly and independently drawn
2. population distributions are normal or both sample size are greater than 30 (by using CLT)
if we are performing a two-tailed test of whether p = 0.5, the probability of detecting a shift of the proportion to 0.6 will be less than the probability of detecting a shift of the proportion to 0.7
true