TECH3 Applied Statistics is taught in the second semester, focusing on the fundamental principles of statistics and probability. We cover topics such as data summarization, probability distributions, estimation, hypothesis testing, and relationship measurement. The course utilizes simulations, resampling techniques, and Python programming to handle uncertainty in estimators and decisions.
The course consists of five modules:
- Summarizing and visualizing Data
- Focus: Making the data more accessible.
- Key topics: Central statistics summarizing data, histograms, scatterplots, boxplots, human perceptional limitations.
- Special Emphasis: What is statistical thinking? Never create a pie chart.
- Probability, random variables, probability distributions and simulations
- Focus: Random variables, distributions and the link to simulations.
- Key topics: Probability distributions, conditional probability, independence, the law of large numbers, pseudo-random numbers.
- Special Emphasis: Estimating the probability of complex outcomes through simulations.
- Estimation, sampling distributions and resampling
- Focus: Modern inference using Monte Carlo methods.
- Key topics: Central limit theorem, sampling error of various statistics, Monte Carlo simulation.
- Special Emphasis: Distinguish between a population and a sample and between population parameters and sample statistics.
- Designing studies, hypothesis testing, and quantifying effects
- Focus: Modern hypothesis testing using bootstrap methods.
- Key topics: classical test statistics, confidence intervals, effect size, power analysis, AB-testing.
- Special Emphasis: Statistical significance versus practical significance. Describe the proper interpretations of a p-value and common misinterpretations.
- Measuring relationships and fitting models
- Focus: The difference between modelling continuous and categorical relationships.
- Key topics: Correlation, causation, linear regression, predictions, odds ratio, generalized linear regression, classification, chi-squared tests.
- Special Emphasis: Address overfitting using cross-validation.
TECH3 builds upon the skills acquired from TECH2, providing students with statistical knowledge and skills essential for addressing practical business issues. It specifically focuses on challenges related to understanding and meeting the needs of consumers and users, emphasizing sustainability and aligning with topics covered in courses like EBO1, MAB1, and MAB2. TECH3 is also a prerequisite for TECH5, where more advanced statistical analysis techniques are explored.