Suppose an Internet retailer would like to investigate the linear relationship between the amount of time in minutes a purchaser spends on its Web site and the amount of money he or she spends on an order. The table to the right shows the data from a random sample of 12 customers. Order Size Time Order Size 20 $71 4 $60 11 $29 38 $365 26 $90 8 $132 22 $203 36 $155 3 $49 22 $78 12 $39 7 $249 α=0.01 The test statistic is t=1.93 The p-value is
Inverse Normal Distribution
The method used for finding the corresponding z-critical value in a normal distribution using the known probability is said to be an inverse normal distribution. The inverse normal distribution is a continuous probability distribution with a family of two parameters.
Mean, Median, Mode
It is a descriptive summary of a data set. It can be defined by using some of the measures. The central tendencies do not provide information regarding individual data from the dataset. However, they give a summary of the data set. The central tendency or measure of central tendency is a central or typical value for a probability distribution.
Z-Scores
A z-score is a unit of measurement used in statistics to describe the position of a raw score in terms of its distance from the mean, measured with reference to standard deviation from the mean. Z-scores are useful in statistics because they allow comparison between two scores that belong to different normal distributions.
| Suppose an Internet retailer would like to investigate the linear relationship between the amount of time in minutes a purchaser spends on its Web site and the amount of money he or she spends on an order. The table to the right shows the data from a random sample of 12 customers. |
|
Order Size
|
Time
|
Order Size
|
|
|
|---|---|---|---|---|
|
20
|
$71
|
4
|
$60
|
|
|
11
|
$29
|
38
|
$365
|
|
|
26
|
$90
|
8
|
$132
|
|
|
22
|
$203
|
36
|
$155
|
|
|
3
|
$49
|
22
|
$78
|
|
|
12
|
$39
|
7
|
$249
|
The test statistic is
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