Question

Distinguish between data analysis, hypothesis testing modelling and estimation. Give a simple example of each and discuss the appropriate contexts in which each should be used.

Answer 1

a Point estimation deals with the method Estimation: of estimating an unknown parameter of population based on Random Samples from the same population The assumptim here is that the parameter to be estimatea is a constant with one value and the sample Statistic computed from the sample is estimating that value exao xactly. In the parametes epace, it is represented as point. Hence the name point estimation. Maximum likelihood is such a method a Example sample mean (7), sample proportin (A) sample stendand ear (s)

Data analyse it & a proces methods that that relies on and techniques to taking raw data, mining for insights relevant to the business's primary goal, and drilling down into this infumation to transform metics frets and figures into initiatives for improvement. Types: qualitative DA quantitative of Souples consulting tums live KPMG, PwC and Ex use. data analys to help the clients there to grown en businesses.

Testing of hypothesis it is a process } either rejecting os not rejecting a statement or a. hypothers that has been set up about the parameter. This is done by computing a test stalistic based saamples from that population and testing it against an ideal on the semdard value. conclusion consect one. A 'risk' of a maning wrong is predetermined. That means probability of rejecting the original hypothers when it is a The burc hypothers about the parameter is known as hypother hypothesis is the Null and an alternative who set up at the same time, if Null Ho is rejected, Alternative HCl) is recepted f