Last updated on Jun 7, 2024
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The Bell Curve
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Central Limit Theorem
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Significance Levels
4
Z-scores and P-values
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Practical Applications
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Here’s what else to consider
Hypothesis testing, a cornerstone of statistical analysis, often relies on the normal distribution, also known as the Gaussian distribution. This bell-shaped curve is fundamental because it describes how data points are expected to disperse around a mean (average) value. Most natural phenomena follow this pattern, assuming a symmetrical distribution of data. In hypothesis testing, you'll frequently assume that your sample data follows a normal distribution, particularly when working with large sample sizes due to the Central Limit Theorem, which states that the means of samples from a population will approximate a normal distribution, regardless of the population's distribution.
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- Amr ElFeky Management Information System Supervisor Analyst at Banque du Caire 1
- Scott Burk Data and Analytics Doctor. 5X Author, AI/Data/Analytics Architect 1
1 The Bell Curve
The normal distribution's bell curve is essential in determining how far your sample data deviates from what's expected under the null hypothesis—the assumption that there is no effect or difference. By comparing your data to the standard normal distribution, you can calculate a z-score, which indicates how many standard deviations your data point is from the mean. If your z-score falls into the extreme tails of the distribution, it suggests that your observed effect is statistically significant, and you may reject the null hypothesis.
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- Amr ElFeky Management Information System Supervisor Analyst at Banque du Caire
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We use the bell curve as it represents the normal pattern of our live, Assume that you have 20 students as example you'll find two of them an unique students the other two will require some effort to modify there performance because they under a good performance while others have an a good performance, So this pattern can well represented using a bell curve
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2 Central Limit Theorem
The Central Limit Theorem (CLT) is vital in hypothesis testing as it justifies using the normal distribution when dealing with sample means. It states that the distribution of sample means will approximate a normal distribution as the sample size becomes large, regardless of the population's original distribution. This allows you to use normal distribution-based methods, like z-tests, to infer about the population even when the original data does not appear normally distributed.
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- Amr ElFeky Management Information System Supervisor Analyst at Banque du Caire
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In my experience if you have selected a randomly sample it will have the same characteristics of the population but you have select your random sample under the same role , for example if you analyse the difference between men and women in a school performance you must select them under the same category (age).
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3 Significance Levels
In hypothesis testing, significance levels are predetermined thresholds for deciding whether to reject the null hypothesis. Typically set at 0.05 or 5%, this level corresponds to the tails of the normal distribution curve. Data points that fall beyond this threshold are considered statistically significant. The normal distribution helps you determine the critical value—the z-score that marks the boundary of this significance level.
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- Amr ElFeky Management Information System Supervisor Analyst at Banque du Caire
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Most of all applications and industries mentioned that significant levels 5% on other some industries like medicine you'll find it 1% ,it's very important to understand the reason of significant level or alpha because it'll lead you to reject or accept the Hypothesis test and will help you to avoid errors like error number 1 or error numbers 2
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4 Z-scores and P-values
Z-scores are a measure of how many standard deviations an element is from the mean. P-values, on the other hand, tell you the probability of observing your data, or something more extreme, if the null hypothesis is true. Both these statistics are based on the standard normal distribution. A small p-value, typically less than the significance level, indicates that your results are unusual under the null hypothesis and may lead you to reject it.
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5 Practical Applications
In practical terms, understanding the role of the normal distribution in hypothesis testing helps you make informed decisions. For instance, when analyzing survey data or quality control measurements, you can use normal distribution principles to assess whether observed variations are due to chance or if they reflect true differences or changes in your data set. This understanding is crucial for fields like medicine, economics, and engineering where data-driven decisions can have significant consequences.
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6 Here’s what else to consider
This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?
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- Scott Burk Data and Analytics Doctor. 5X Author, AI/Data/Analytics Architect
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These answers are great for learning and understanding the power of parametric statistics. Traditionally, these were needed and still powerful when assumptions are satisfied. However, with computational power, simulation is a great way to solve. Generate an empirical distribution. Let me know if you have questions.
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In Hypothesis test Most of business statistics applications will use the t test cause simply you'll not find the population standard deviation so you'll sampling your data randomly according to the central limit theory then making a Hypothesis test depending on this sampling
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