BUS 430

Recognizing problem types: Hypothesis tests

Read the problem looking for keywords and values: What type of variable is the focus of the problem? Is it quantitative, e.g. a mean, or categorical, e.g. a proportion or percent? How many variables are of concern? Is(are) the population(s) standard deviation, sigma, given? Are sample variances equal or are you instructed to assume they …

Recognizing problem types: Hypothesis tests Read More »

No Standard Deviation? How do I get the standardized test statistic?

I get this question a lot in my BUS 233 Business Statistics course. It comes when students see a problem similar to the following in their homework or on a quiz: In a sample of 1000 home buyers, you find that 457 home buyers found their real estate agent through a friend. At α=0.08, can …

No Standard Deviation? How do I get the standardized test statistic? Read More »

Use Excel to Calculate MAD, MSE, RMSE & MAPE

To optimize your forecast, whether moving average, exponential smoothing or another form of a forecast, you need to calculate and evaluate MAD, MSE, RMSE, and MAPE. With Excel 2016 or later, this is easy to do. The Mean Absolute Deviation (MAD) is the sum of absolute differences between the actual value and the forecast divided …

Use Excel to Calculate MAD, MSE, RMSE & MAPE Read More »

Scroll to Top