SB 101 Chapter Notes - Chapter 1-2: Statistical Hypothesis Testing
Document Summary
Social science- why people/firms/institutions do what they do. Goal: to get a theory that explains about 85% of what is going on. Theories weaken if % goes down because that means that they"re less correct. 15% of all theories is unexplained, but it can be explained as irrational behavior, and rational behavior that you can"t model, and measurable error: ex. Some people will never buy sprite, even if the prices are super low, because they don"t like the taste of it. 100% threshold because it"s based on science followed. Social science and physical science have conflict between unlimited wants, and. Decision making: make the most efficient decision, there are sacrifices when making a decision. Limited productive resources with the purpose of attaining maximum satisfaction of human material wants. Efficient utilization: use resources well, limit waste/costs- get the best grade/outcome/output possible: takes planning, skills, and education.
