Statistics for Data Science and Analytics

2Designing and Carrying Out a Statistical Study

In this chapter, we study random behavior and how it can fool us, and we learn how to design studies to gain useful and reliable information. After completing this chapter, you should be able to

1. Use coin flips to replicate random processes, and interpret the results of coin-flipping experiments
2. Use an informal working definition of probability
3. Define, intuitively, -value
4. Describe the different data formats you will encounter, including relational database and flat file formats
5. Describe the difference between data encountered in traditional statistical research, and “big data”
6. Explain the use of treatment and control groups in experiments
7. Define statistical bias
8. Explain the role of randomization and blinding in assigning subjects in a study
9. Explain the difference between observational studies and experiments
10. Design a statistical study following basic principles

2.1 Statistical Science

“It’s not what you don’t know that hurts you, it’s what you know for sure that ain’t so.” (Will Rogers, American humorist)

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Nearly all large organizations now have huge stores of customer and other data that they mine for insight, in hopes of boosting revenue or reducing costs. In the academic world, over five ...