## Hypothesis Testing Step-by-Step

To conduct hypothesis testing: 1.Create null and alternative hypothesis 2.Calculate z or t test statistics 3.Get the critical value from z or t table 4.Compare calculated value from step 2 with critical value from step 3. 1. “The null hypothesis is denoted by H0, and the alternative hypothesis is denoted by H1.” (Mann, 2010, p.382) … Continue reading Hypothesis Testing Step-by-Step

## Simple 4 Step T Test

The t-statistic was introduced in 1908 by William Sealy Gosset, a chemist working for the Guinness brewery in Dublin, Ireland. “Student” was his pen name. Gosset had been hired owing to Claude Guinness’s policy of recruiting the best graduates from Oxford and Cambridge to apply biochemistry and statistics to Guinness’s industrial processes. Gosset devised the t-test as an economical way to monitor the quality of stout.  When given a t-test question, we must first find the following: … Continue reading Simple 4 Step T Test

## IBM SPSS Software & Laerd Statistics

The IBM SPSS software offers statistical analysis, a library of algorithms, text analysis, open-source extensibility, integration with big data and seamless deployment into applications. Its ease of use make IBM SPSS accessible to users with all skill levels and outfits projects of all sizes and complexity. While, Laerd statistics is perfect for SPSS users, whether … Continue reading IBM SPSS Software & Laerd Statistics

## Statistics Introduction

Statistics can refer to numerical facts or its field of study: a group of methods used to collect, analyse, present, and interpret data and to make decisions. Decisions made by using statistical methods are called educated guesses. Like other fields of study, statistics has two aspects: theoretical and applied. Firstly, theoretical statistics deals with the … Continue reading Statistics Introduction

## Functions of Many Variables

Functions with more than one independent variable. y=f(x) => one independent variable. Not just price, but incomes, ect. are independent. z=f(x, y)     Here, z = dependent, x & y = independent. Example: z=100-2x+5y z=3×2-9y z=e2x+3y     Expediential fn. Example 1: z=150-2x-3y X-Intercept  (z=0, y=0) 0= 150-2x-3(0) => x=150/2 =75       (75, 0, 0) Y-Intercept  (x=0, z=0) 0= … Continue reading Functions of Many Variables

## Production Possibilities Frontier

A business produces two products, with 200 labour hours spread between each. Per unit of product 1 requires 4 labour hours. Per unit of product 2 requires 2.5 labour hours. Assuming full employment, the equation is 4x + 2.5y = 200. Here, x represents product 1 and y product 2. Question: (i) Identify the slopes, … Continue reading Production Possibilities Frontier

## Macroeconomic Calculations

In this article we will be discussing economic calculations such as national income (C, I, G), production function (marginal product of labor, marginal product of capital K), nominal and real interest rates, inflation rates, and the unemployment rate covering job finding and separation. It is important to become aware of the different calculations in order … Continue reading Macroeconomic Calculations