Resource Library

This excerpt from Engineering Statistics Handbook gives a definition for and examples of outliers. A sub-page also discusses Grubbs' Test for Outliers

A short discussion of what outliers are and their helpfulness in analyzing data.

This webpage uses the criminal trials in the US Justice system to illustrate hypothesis testing, type I error, and type II error. An applet allows the user to examine the probability of type I errors and type II errors under various conditions. An applet allows users to visualize p-values and the power of a test. Keywords: type I error, type II error, type one error, type two error, type 1 error, type 2 error

This video is an example of what is known in psychology as selective attention. When a person is instructed to only focus on the number of times a ball is passed between players wearing a white shirt it is sometimes difficult to see what else is going on.

This is an example of "growing" a decision tree to analyze two possible outcomes. The tree's branches examine the two possible conditions of employee drug use with corresponding probabilities. This example looks at the final outcome probabilities of being correctly and incorrectly identified versus testing accuracy.

This page explores Benford's Law: For naturally occurring data, the digits 1 through 9 do not have equal probability of being the first significant digit in a number; the digit 1 has greater odds of being the first significant digit than the others. This law can be used to catch tax fraud because truly random numbers used by embezzlers do not meet this condition.

This page explores Benford's law and the Pareto Principle (or 80/20 rule). Benford's law may also have a wider meaning if the digits it evaluates are considered ranks or places. The digit's probability of occurring could be considered the relative share of total winnings for each place (1st through 9th). In other words, 1st place would win 30.1%, 2nd place 17.6%, 3rd 12.5%,... 9th place 4.6% of the available rewards. The normalized Benford curve could be used as a model for ranked data such as the wealth of individuals in a country. To determine if the Benford model gives results similar to those of the Pareto principle we use the normalized Benford equation in a computer program.

This page shows how elements of a systems can be eliminated as causes in problem troubleshooting. The principles of twenty questions are frequently used in the business world to conduct computerized searches of massive data bases. These are called a binary searches and are one of the fastest search methods available. To conduct binary searches, data must be sorted in order or alphabetized. The computer determines which half of the list contains the item. The half containing the item is divided in half again and the process repeated until the item is found or the list can no longer be divided. Problem solvers should avoid focusing on the cause and instead ask which elements of the system can be eliminated as causes.

Using a parameter it's possible to represent a property of an entire population with a single number instead of millions of individual data points. There are a number of possible parameters to choose from such as the median, mode, or interquartile range. Each is calculated in a different manner and illuminates the data from a different point of view. The mean is one of the most useful and widely used and helps us understand populations. A population is simulated by generating 10,000 floating point random numbers between 0 and 10. Sample means are displayed in histograms and analyzed.

This activity leads students to appreciate the usefulness of simulations for approximating probabilities. It also provides them with experience calculating probabilities based on geometric arguments and using the bivariate normal distribution. We have used it in courses in probability and mathematical statistics, as well as in an introductory statistics course at the post-calculus level. Students are expected to approximate the solution through simulation before solving it exactly. They are also expected to employ graphical as well as algebraic problem-solving strategies, in addition to their simulation analyses. Finally, students are asked to explain intuitively why it makes sense for the probabilities to change as they do. Key words: simulation, probability, geometry, independence, bivariate normal distribution