What is sampling?
We all know ‘Sample’ means a small part or quantity intended to show what the whole is like. Similarly, the ‘Random Sampling’ is a way of selecting a portion chosen from the population in order to make inferences about the whole population. For example, pre-polls or exit polls results obtained from random voters aims to…
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What are Null hypothesis and alternative hypothesis?
A statistical hypothesis is also known as confirmatory data analysis which is testable on the basis of observing a process that is modeled via a set of random variables. Hypothesis testing is an act in statistics whereby an analyst tests an assumption regarding a population parameter. There are two different hypothesis viz. Null hypothesis and…
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What is regression analysis?
Regression analysis is a form of inferential statistics. It is a measure of the relation between the mean* value of one variable (e.g. output) and corresponding values of other variables (e.g. time and cost). Regression model can help predict sales for a company based on weather, previous sales, GDP growth or other types of conditions.…
Read article What is the correlation coefficient r?
In statistics, the correlation coefficient r measures the strength and direction of a linear relationship between two variables on a scatterplot. The value of r is always between +1 and –1. The closer the value of r is to +1, the stronger the linear relationship. For example, suppose the value of Diesel prices are directly…
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What is market discipline?
In general, market discipline is defined as the transparency and disclosure of the risks associated with a business or entity. In case of banks, market discipline refers to the obligation by the banks and financial institutions to conduct business while considering the risks to their stakeholders in the passage of their day-to-day operations. Therefore, bank…
Types of economies: Market, Command and Mixed Economies
We generally identify four different types of economies viz. market economy, command/Planned economy, mixed economy. and traditional economy. Let us examine here how these economies function. What is a market economy? A Market economy is an economy in which most goods and services are produced and distributed through free markets wherein the market determines investments,…
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