Statistics (continued)

The material for the statistics review is located on another website.  When you visit this other site a new window will open and there will be a menu of links at the far right side of the page.  You will be taking some of these links to the materials for different topics.  Anytime you want to return to this page you can just close the new windows that have opened.

Now return to: http://www.statsoft.com/textbook/stathome.html

From the menu to the right select “Basic Statistics”.

You should be taken to the following list of topics covered in this discussion of basic statistics.  Read all topics but pay special attention to the topics in bold print.    (Source: StatSoft, Inc. (2002). Electronic Statistics Textbook. Tulsa, OK: StatSoft. WEB: http://www.statsoft.com/textbook/stathome.html.)

• Descriptive statistics
• "True" Mean and Confidence Interval             (The "mean" is our "expected rate of return" - read B&H pp. 233 - 237 again)
• Shape of the Distribution, Normality
• Correlations
• Purpose (What is Correlation?)                   (The degree of correlation between asset returns provides diversification opportunities.)
• Simple Linear Correlation (Pearson r)        (Read pp. 242 – middle of 245 to see how this happens.)
• Significance of Correlations
• How to Interpret the Values of Correlations
• Outliers
• Quantitative Approach to Outliers
• Correlations in Non-homogeneous Groups
• Nonlinear Relations between Variables
• Measuring Nonlinear Relations
• Exploratory Examination of Correlation Matrices
• Casewise vs. Pairwise Deletion of Missing Data
• How to Identify Biases Caused by the Bias due to Pairwise Deletion of Missing Data
• Pairwise Deletion of Missing Data vs. Mean Substitution
• Spurious Correlations
• Are correlation coefficients "additive?"
• How to Determine Whether Two Correlation Coefficients are Significant
• t-test for independent samples (T-tests are often used in business to compare performance variables across firms.)
• Purpose, Assumptions
• Arrangement of Data
• t-test graphs
• More Complex Group Comparisons
• t-test for dependent samples
• Within-group Variation
• Purpose
• Assumptions
• Arrangement of Data
• Matrices of t-tests
• More Complex Group Comparisons

            (Source: StatSoft, Inc. (2002). Electronic Statistics Textbook. Tulsa, OK: StatSoft. WEB: http://www.statsoft.com/textbook/stathome.html.)

Text Readings and Assignments:

Chapter 8 of Fundamentals of Financial Management, 11th. edition, Eugene F. Brigham and Joel F. Houston, 2006

Component		Page Numbers	Questions	Self Test	Problems
Basic Statistics	B&H 6^th Concise	260		1(a,b,c,e,f) 2(a,b,c)
	B&H 6^th Concise	(261 - 285)	2,5		6

Solutions will be distributed in class for check purposes.

Continue on to the next Statistics Page.