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Midterm

# Midterm- Key Concepts and Equations

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University of Guelph

Economics

ECON 2740

David Prescott

Winter

Description

Key Equations and Concepts
December 7, 2013 2:38 PM
Random Discrete Variable- the random variable ▯ can taken any of a finite number of different
values (for example, a six sided die)
Random Continuous Variable- the random variable ▯ can take any of an infinite number of
numerical values
Variance- the average squared deviation of ▯ from its mean
▯ ▯
▯ ▯▯▯▯▯▯▯
▯ ▯ ▯ ▯▯ ▯▯▯ ▯ ·▯▯▯ ▯
▯ ▯
Standard Deviation- the average deviation of ▯ from its mean (also the squared variance)
▯▯▯ ▯▯▯ ▯
▯▯▯
σ▯ ▯ ▯
Coefficient Variation - a unit free measure that can be used to compare to things
▯▯ ▯▯ ▯▯▯▯▯
Sample Quartiles- quartiles divide data into for equal parts, or quartiles
- ▯ ▯second quartile) is also the median
- The position of the first quarti▯▯ is found using the first equation, and the vale by the
second equation
▯▯ ▯ ▯▯ ▯ 1▯▯
4
▯ ▯ 0.75▯ ▯ 0.25▯
▯ ▯ ▯
- The position of the third quartile ▯is found usingthe first equation, and the vale by the
▯
second equation
▯ ▯ ▯▯▯1 ▯ ·3▯
▯ 4
▯ ▯ 0.25▯ ▯0.75▯
▯ ▯ ▯
Sample Median- the value that lies in the middle of the data set, and the position can be found
using the first equation, and the value using the second equation
▯ ▯ ▯▯ ▯ 1▯▯
▯ 2
▯▯▯05.▯ ▯ ▯0.5▯ ▯ Interquartile Range- the interquartile range contains the middle 50% of ordered observations, or
the values in between the first and third quartiles
▯▯ ▯ ▯ ▯▯ ▯
Moments- there are four moments is statistics, summarized in the following table
Moment Associated Statistics
First Mean
Second Variance
Third Skew
Fourth Kurtosis
Set- a set is a collection of objects, and subsets are contained in the set
Compliment- denoted ▯ or ▯ , it contains all the elements not in ▯
Union- denoted ▯ ∪▯ , is every element contained in both ▯ and ▯
- Note ▯ ∪▯ ▯ ▯ ∩▯ and are all the elements not in ▯ and ▯, so the unshaded area in the
following diagram
- ▯▯▯▯∪▯ ▯▯

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