Screenshot 2024-03-09 at 21.19.03
Screenshot 2024-03-09 at 21.19.03
Screenshot 2024-03-09 at 21.19.03
level of significance
Levels of significance are found using critical region statistics and critical
region statistical charts. Each type of statistical test has associated with it a
table of significance level and their critical region. For example, for a t-test the
critical score might be 1.96; any score over 1.96 would be considered
significant under p-value=0.05, but it may take a score of 2.25 or higher to
reach the significance level of p-value=0.01.
What Is P-Value
In statistics, a p-value is a number that indicates how likely you are to obtain a
value that is at least equal to or more than the actual observation if the null
hypothesis is correct.
The p-value serves as an alternative to rejection points to provide the smallest
level of significance at which the null hypothesis would be rejected. A smaller
p-value means stronger evidence in favor of the alternative hypothesis.
IN SUMMARY
Fixed effect
Fixed effects play a fundamental role in statistical analysis, providing a way to account for specific
variables or factors that remain constant across observations. These effects allow us to capture the
individual characteristics of entities under study and control for their impact on the outcome of interest.
To understand fixed effects, let’s consider a hypothetical research study. The study aims to examine the
impact of different teaching methods (lecture-based vs project-based) on student performance across five
schools (A, B, C, D, and E). Each school may have unique characteristics that could potentially affect
student performance, such as school size, funding levels, and teacher-student ratio. In this study, a
common aptitude exam is administered to all students from the five schools, and their test scores, ranging
from 0 to 100, are collected.
To analyze the data, a regression model is employed. The dependent variable is the test score, while the
independent variable is a binary variable indicating the teaching method (lecture-based coded as 0,
project-based coded as 1).
In this model, the ‘teaching method’ is a fixed effect because the researchers assume the effect of the
teaching method on the outcome variable is constant across all the observations (irrespective of school).
Random Effect
Unlike fixed effects, which capture specific characteristics that remain constant across observations,
random effects are used to account for variability and differences between different entities or subjects
within a larger group.
Going from the previous example, suppose the research says that the effect of teaching method is not
constant across schools, rather it varies by school due to school-level characteristics. In such cases, a
mixed effects model can be employed to meet the objectives.
Data analysis is the process of collecting, modeling, and analyzing data using various statistical and
logical methods and techniques.
Data analysis is the process in which a researcher analyzes data. This process can be used in both
qualitative and quantiative methodology.
3) Prescriptive analysis refers to determing appropriate course of action based on the data.