Bienayme-chebyshev rule, Applied Statistics

Assignment Help:

This probability rule determined by the research of the two mathematicians Bienayme' and Chebyshev, explains the variability of data about its mean when the distribution of the data set is not known. The rule states that the percentage of data observations lying within   1079_Bienayme-Chebyshev Rule1.png   standard deviations of the mean is at least

1387_Bienayme-Chebyshev Rule.png

 x 100

The above rule holds good regardless of the shape of the data set. The formula applies to differences greater than one standard deviation about the mean, and k being greater than 1.

If a particular random phenomenon follows the pattern of bell-shaped model which is usually a normal distribution, we precisely know how any element is likely to be closed to or far from its mean. But, if the population model is not known, the Bienayme' - Chebyshev rule applies. This rule tells how likely any particular value can lie within a specified distance from the mean. If a data set takes any shape, at least [1 - (1/2)2] 100 = 75% of the observations are contained within two standard deviations of the mean. In turn, at least 89% of all observations are contained within three standard deviations of the mean.

This rule helps managers to understand the information content of data when no known distribution can be assumed.

Rectangular distribution: It is used where every observation has the same frequency/probability. The inner rectangle contains at least 75% of the observations.

1048_rectangular distribution.png

Non-symmetrical distribution: When the two halves of a distribution about the mean are not mirror images of each other then it is termed as a non-symmetrical distribution. The shaded area below contains at least 75% of the observations.

1782_rectangular distribution1.png


Related Discussions:- Bienayme-chebyshev rule

Two methods of isolating trend values in a time series, a) What is meant by...

a) What is meant by secular trend? Discuss any two methods of isolating trend values in a time series.

Find the rank correlation coefficient, 1. Calculate the mean and mode of: ...

1. Calculate the mean and mode of: Central size 15 25 35 45 55 65 75 85 Frequencies 5 9 13 21 20 15 8 3 The following data shows the monthly expenditure of 80 students of

Population variance, Examining the Population Variance Business decisio...

Examining the Population Variance Business decision making does not limit itself to setting up the hypothesis to test for the equality of more than two means or proportions sim

Determine the subset of variables, Agency revenues. An economic consultant ...

Agency revenues. An economic consultant was retained by a large employment agency in a metropolitan area to develop a regression model for predicting monthly agency revenues ( y ).

Evaluate the probability, "MagTek" electronics has developed a smart phone ...

"MagTek" electronics has developed a smart phone that does things that no other phone yetreleased into the market-place will do. The marketing department is planning to demonstrate

Normal probability plots, The Null Hypothesis - H0:  The random errors will...

The Null Hypothesis - H0:  The random errors will be normally distributed The Alternative Hypothesis - H1:  The random errors are not normally distributed Reject H0: when P-v

., differance b/w big M mathod and two phase mathod

differance b/w big M mathod and two phase mathod

Artificial neural network, Normal 0 false false false E...

Normal 0 false false false EN-US X-NONE X-NONE

Stata question, i am new to stata and i am trying to figure out how to calc...

i am new to stata and i am trying to figure out how to calculate expected growth of sales tax revenue as well as average growth rate of sales tax revenue in stata. I have a dataset

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd