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Business Applications of Hypothesis Testing and Confidence Interval Estimation

Approx. 25 hours to complete

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Course Summary

This course teaches you how to make inferences about populations based on random samples. You will learn how to use confidence intervals and hypothesis testing to analyze data and make decisions.

Key Learning Points

Understand the principles of statistical inference
Learn how to use confidence intervals to estimate population parameters
Master hypothesis testing and its application in real-world scenarios

Job Positions & Salaries of people who have taken this course might have

- USA: $62,000 - $110,000
- India: ₹400,000 - ₹1,200,000
- Spain: €28,000 - €50,000
- USA: $62,000 - $110,000
- India: ₹400,000 - ₹1,200,000
- Spain: €28,000 - €50,000
- USA: $45,000 - $85,000
- India: ₹300,000 - ₹1,000,000
- Spain: €24,000 - €35,000
- USA: $62,000 - $110,000
- India: ₹400,000 - ₹1,200,000
- Spain: €28,000 - €50,000
- USA: $45,000 - $85,000
- India: ₹300,000 - ₹1,000,000
- Spain: €24,000 - €35,000
- USA: $85,000 - $150,000
- India: ₹600,000 - ₹2,500,000
- Spain: €40,000 - €70,000

Learning Outcomes

Understand the principles of statistical inference and how to apply them in real-world scenarios
Learn how to use confidence intervals to estimate population parameters with different levels of precision
Master hypothesis testing and its application in data analysis

Prerequisites or good to have knowledge before taking this course

Basic knowledge of probability theory and statistical concepts
Familiarity with algebra and calculus

Course Difficulty Level

Intermediate

Course Format

Self-paced online course
Video lectures with quizzes and assignments

Similar Courses

Statistics with R Specialization
Data Analysis and Statistical Inference

Related Education Paths

Notable People in This Field

Statistician and Founder of FiveThirtyEight
Professor of Statistics and Political Science at Columbia University

Related Books

Description

Confidence intervals and Hypothesis tests are very important tools in the Business Statistics toolbox. A mastery over these topics will help enhance your business decision making and allow you to understand and measure the extent of ‘risk’ or ‘uncertainty’ in various business processes.

This is the third course in the specialization "Business Statistics and Analysis" and the course advances your knowledge about Business Statistics by introducing you to Confidence Intervals and Hypothesis Testing. We first conceptually understand these tools and their business application. We then introduce various calculations to constructing confidence intervals and to conduct different kinds of Hypothesis Tests. These are done by easy to understand applications. To successfully complete course assignments, students must have access to a Windows version of Microsoft Excel 2010 or later. Please note that earlier versions of Microsoft Excel (2007 and earlier) will not be compatible to some Excel functions covered in this course. WEEK 1 Module 1: Confidence Interval - Introduction In this module you will get to conceptually understand what a confidence interval is and how is its constructed. We will introduce the various building blocks for the confidence interval such as the t-distribution, the t-statistic, the z-statistic and their various excel formulas. We will then use these building blocks to construct confidence intervals. Topics covered include: • Introducing the t-distribution, the T.DIST and T.INV excel functions • Conceptual understanding of a Confidence Interval • The z-statistic and the t-statistic • Constructing a Confidence Interval using z-statistic and t-statistic WEEK 2 Module 2: Confidence Interval - Applications This module presents various business applications of the confidence interval including an application where we use the confidence interval to calculate an appropriate sample size. We also introduce with an application, the confidence interval for a population proportion. Towards the close of module we start introducing the concept of Hypothesis Testing. Topics covered include: • Applications of Confidence Interval • Confidence Interval for a Population Proportion • Sample Size Calculation • Hypothesis Testing, An Introduction WEEK 3 Module 3: Hypothesis Testing This module introduces Hypothesis Testing. You get to understand the logic behind hypothesis tests. The four steps for conducting a hypothesis test are introduced and you get to apply them for hypothesis tests for a population mean as well as population proportion. You will understand the difference between single tail hypothesis tests and two tail hypothesis tests and also the Type I and Type II errors associated with hypothesis tests and ways to reduce such errors. Topics covered include: • The Logic of Hypothesis Testing • The Four Steps for conducting a Hypothesis Test • Single Tail and Two Tail Hypothesis Tests • Guidelines, Formulas and an Application of Hypothesis Test • Hypothesis Test for a Population Proportion • Type I and Type II Errors in a Hypothesis WEEK 4 Module 4: Hypothesis Test - Differences in Mean In this module, you'll apply Hypothesis Tests to test the difference between two different data, such hypothesis tests are called difference in means tests. We will introduce the three kinds of difference in means test and apply them to various business applications. We will also introduce the Excel dialog box to conduct such hypothesis tests. Topics covered include: • Introducing the Difference-In-Means Hypothesis Test • Applications of the Difference-In-Means Hypothesis Test • The Equal & Unequal Variance Assumption and the Paired t-test for difference in means. • Some more applications

Outline

Confidence Interval - Introduction
Meet the Professor
Introducing the t-distribution, the T.DIST Function
t-distribution Continued, the T.INV Function
Introducing Confidence Interval
Introducing Confidence Interval (Continued)
The z-statistic and the t-statistic
Using z- and t- statistics to Construct Confidence Interval
Week 1 Recap
Course FAQs
Pre-Course Survey
Slides, Lesson 1
Slides, Lesson 2
Slides, Lesson 3
Slides, Lesson 4
Slides, Lesson 5
Slides, Lesson 6
Practice Quiz
Practice Quiz
Practice Quiz
Practice Quiz
Practice Quiz
Practice Quiz
Confidence Interval - Introduction

Confidence Interval - Applications
Application of Confidence Interval
Confidence Interval for a Population Proportion
Sample Size Calculation
Sample Size Calculation (Continued)
Hypothesis Testing, An Introduction
Week 2 Recap
Home_Sizes.xlsx
Slides, Lesson 1
Slides, Lesson 2
Slides, Lesson 3
Slides, Lesson 4
Slides, Lesson 5
Practice Quiz
Practice Quiz
Practice Quiz
Practice Quiz
Practice Quiz
Confidence Interval - Applications

Hypothesis Testing
The Logic of Hypothesis Testing
Conducting a Hypothesis Test, the Four Steps
Single Tail and Two Tail Hypothesis Tests
Guidelines, Formulas and an Application of Hypothesis Test
Hypothesis Test for a Population Proportion
Type I and Type II Errors in a Hypothesis Test
Week 3 Recap
Slides, Lesson 1
Slides, Lesson 2
Slides, Lesson 3
Average Age.xlsx
Slides, Lesson 4
Slides, Lesson 5
Slides, Lesson 6
Practice Quiz
Practice Quiz
Practice Quiz
Practice Quiz
Practice Quiz
Practice Quiz
Hypothesis Testing

Hypothesis Test - Differences in Mean
Introducing the Difference-In-Means Hypothesis Test
Application of the Difference-In-Means Hypothesis Test
Application (Continued) - Equal & Unequal Variance Assumption
The Paired t-Test for Means
Some More Applications
Some More Applications (Continued)
Week 4 Recap
Athletes.xlsx
Slides, Lesson 1
Slides, Lesson 2
Athletes.xlsx
Slides, Lesson 3
Training.xlsx
Slides, Lesson 4
Store Sales
Slides, Lesson 5
Age Data
Slides, Lesson 6
End-of-Course Survey
Practice Quiz
Practice Quiz
Practice Quiz
Practice Quiz
Practice Quiz
Practice Quiz
Hypothesis Test - Differences in Mean

Summary of User Reviews

Discover the art of hypothesis testing and confidence intervals with this online course from Coursera. Users have given this course positive reviews overall and appreciate its practical applications. However, some users note that the course lacks depth in certain areas and may not be suitable for those with limited statistical knowledge.

Key Aspect Users Liked About This Course

Many users found the practical applications of the course to be a strong point.

Pros from User Reviews

Clear and concise explanations of statistical concepts
Well-structured course materials
Engaging and knowledgeable instructor
Practical examples and exercises
Useful for those new to statistical analysis

Cons from User Reviews

Not suitable for those with advanced statistical knowledge
Lacks depth in certain areas
Some users find the course too basic
Minimal interaction with other students
Not enough emphasis on real-world applications

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