Simulation

  • An important objective in hiring is to ensure diversity in the workforce. The race or gender of individuals hired by an organization should reflect the race or gender of the applicant pool. If certain groups are under-represented or over-represented among the employees, then there may be a case for discrimination in hiring. On the other hand, there may be a number of random factors unrelated to discrimination, such as the timing of the interview or competition from other employers, that might cause one group to be over-represented or under-represented. In this exercise, we ask students to investigate the role of randomness in hiring, and to consider how this might be used to help substantiate or refute charges of discrimination. Key words: Probability distribution, binomial distribution, computer simulation, decision rules
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  • Residual plots and other diagnostics are important to deciding whether or not linear regression is appropriate for a set of data. Many students might believe that if the correlation coefficient is strong enough, these diagnostic checks are not important. The data set included in this activity was created to lure students into a situation that looks on the surface to be appropriate for the use of linear regression but is instead based (loosely) on a quadratic function. Key words: regression, residuals
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  • This group activity illustrates the concepts of size and power of a test through simulation. Students simulate binomial data by repeatedly rolling a ten-sided die, and they use their simulated data to estimate the size of a binomial test. They carry out further simulations to estimate the power of the test. After pooling their data with that of other groups, they construct a power curve. A theoretical power curve is also constructed, and the students discuss why there are differences between the expected and estimated curves. Key words: Power, size, hypothesis testing, binomial distribution

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  • This group activity focuses on conducting an experiment to determine which of two brands of paper towels are more absorbent by measuring the amount of water absorbed. A two-sample t-test can be used to analyze the data, or simple graphics and descriptive statistics can be used as an exploratory analysis. Students are asked to think about design issues, and to write a short report stating their results and conclusions, along with an evaluation of the experimental design. Key words: Two-sample t-test

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  • The Food and Drug Administration requires pharmaceutical companies to establish a shelf life for all new drug products through a stability analysis. This is done to ensure the quality of the drug taken by an individual is within established levels. The purpose of this out-of-class project or in-class example is to determine the shelf life of a new drug. This is done through using simple linear regression models and correctly interpreting confidence and prediction intervals. An Excel spreadsheet and SAS program are given to help perform the analysis. Key words: prediction interval, confidence interval, stability

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  • The program DistCalc calculates probabilities and critical values for the most important distributions. The purpose of this program is to show the concept of critical values and the replacement of printed distribution tables. The Distribution Calculator offers calculations for the normal distribution, the t distribution, the chi-square distribution, and the F distribution.

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  • This program visualizes the effects of outliers to regression lines. The user may pick up a point with the mouse and move it across the chart. The resulting regression line is automatically adjusted after each movement, showing the effect in an immediate and impressive way. The program Leverage allows one to experiment with the leverage effect. You can create a random sample of data noisy points on a line. Dragging one of the points away from the regression line immediately shows the effect, as the regression line is recalculated and moves according to the current data set. Not online: user has to download the program.

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  • This program has been written to explore the relationship between the data points and the error surface of the regression problem. On one hand you can learn how to represent a line in two different spaces ({x,y} and {k,d}), and on the other hand you see that solving the regression problem is nothing else than finding the minimum in the error surface.

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  • As quoted on the site, "The National Center for Catastrophic Sport Injury Research collects and disseminates death and permanent disability sports injury data that involve brain and/or spinal cord injuries." Links to data, annual reports, and definitions of injury are included.
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  • This site offers a list of sample questions that can be used when teaching basic probability concepts, probability distributions, data collection methods, inferential statistics, hypothesis testing, analysis of variance, regression analysis, or problem sensing related to descriptive statistics. Links to the answers are also provided. Application is not limited to business.
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