Statistics1 Statistics Project Example | Topics and Well Written Essays - 500 words

Statistics1 - Statistics Project Example The calculated measure for sample is called as statistic whereas the same measure for the population is known as parameter. Sampling error is the error that occurs when the sample is not a representative of the population. This arises out of incorrect sampling method being used to describe the population. The error means that the statistic for the sample will be different from the parameter for the population An experiment is a scientific research method in which the researcher controls one or more variables and measures the changes in other variables. Experimental research is generally used when there is high degree of correlation between the variables. Dr. Jones has conducted an experimental study. Dr. Jones has controlled the variable quality of breakfast by dividing the sample into two groups and administering different quality of breakfast to each. Academic performance is the dependent variable which is studied for both the groups. Nominal v/s Ordinal: While nominal scale is the representation of a descriptive category of the variable, the ordinal scale is the representation of the also contains the magnitude of the order of the value on the scale. For example, while gender that can only have male or female as the value is a nominal scale, the position of a horse in a race is the example of the ordinal scale Ordinal v/s Interval: Apart from the ranking in an ordinal scale, the interval scale also the magnitude of the difference between two values in the series. For example temperature on days is an interval variable because we can also measure the magnitude of the difference between the temperatures on two days. Interval v/s ratio: Apart from the measurement of magnitude, the ratio scale also contains the absolute zero value for a variable below which no value can exist. Example of such a variable will be

Ratios Essay Example | Topics and Well Written Essays - 250 words

Ratios - Essay Example The standardized scope of financial ratios also limits quantitative aspects of the communicated information because the ratios do not communicate exact values of financial information. Profitability is for example expresses in ratios and a firm with relatively lower profit level may report higher profitability ratio than a firm that has recorded higher profit volume. Ratios also assume linear relationship between variables and this mislead stakeholders because most variables are not linearly related (Lee, 2006). Investors could use liquidity ratios to make decisions, on whether to invest in a company or not, by comparing the ratios to the value one. Ratios that are less than one means that a company is overwhelmed by debt, is liable to creditors’ terms and should inform a potential investor against the company. Ratios, which are greater than one, however mean an organization’s independence from creditors’ adverse influences and offers short-term stability for investment. Investors can also use the magnitude of liquidity ratios to understand the level of a company’s liquidity for investment decision because a more liquid company is more secure for investors’ short term interests (Lee,