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A unified approach to all problems of prediction, estimation, and hypothesis testing. It is based on concept of the decision function, which tells the performer of experiment how to conduct the statistical aspects of an experiment and which action to take for each possible outcome. Choosing the decision function needs a loss function to be defined which assigns numerical values to making bad or good decisions. Explicitly a general loss function is denoted by L d; expressing how bad it would be to make decision d if the parameter value were. A quadratic loss function, it could be defined as and a bilinear loss function as
Monty Hall problem : A apparently counter-intuitive problem in the probability which gets its name from the TV game show, 'Let's Make a Deal' hosted by the Monty Hall. On show a pa
Briefly explain the importance of forecasting for managers?
The Null Hypothesis - H0: There is no heteroscedasticity i.e. β 1 = 0 The Alternative Hypothesis - H1: There is heteroscedasticity i.e. β 1 0 Reject H0 if Q = ESS/2 >
Multi co linearity is the term used in the regression analysis to indicate situations where the explanatory variables are related by a linear function, making the inference of the
Probability weighting is the procedure of attaching weights equal to inverse of the probability of being selected, to each respondent's record in the sample survey. These weights
Raking adjustments is an alternative to the post stratification adjustments in the complex surveys which ensures that the adjusted weights of the respondents conform to each of th
4-13. Students in a management science class have just received their grades on the first test. The instructor has provided information about the first test grades in some previou
The term used for the estimation of the misclassification rate in the discriminant analysis. Number of techniques has been proposed for two-group situation, but the multiple-group
It is used generally for the matrix which specifies a statistical model for a set of observations. For instance, in a one-way design with the three observations in one group, tw
It is the survey which is carried out in Great Britain on a continuous basis since 1971. About 100 000 households are included in this sample every year. The main goal of the surve
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