MSIS 3223 Exam 2 | exam review 2024
Classical Definition of Probability ** Answ** Probabilities deduced from known processes;
theoretical arguments.
Relative Frequency Definition of Probability ** Answ** Probability based on empirical data;
outcome's relative frequency.
Subjective Definition of Probability ** Answ** Probability based on judgment and
experience; subjective predictions.
Random Variable ** Answ** Numerical description of experiment outcomes; can be
continuous or discrete.
Expected Value ** Answ** Corresponds to the mean; helpful in decision-making.
Joint Probabilities ** Answ** Probabilities of two events occurring together.
Conditional Probabilities ** Answ** Probability of an event given another has occurred.
Independent Events ** Answ** Events not influenced by each other; probabilities are
unaffected.
Variance ** Answ** Measure of dispersion; uncertainty of outcomes.
Normal Distribution ** Answ** Symmetric bell-shaped curve; characterized by mean and
standard deviation.
Probability Density Functions ** Answ** Characterizes outcomes of continuous random
variables; total area under function is 1.
Regression Analysis ** Answ** Tool for building models characterizing relationships
between variables.
Simple Regression ** Answ** Regression model with a single independent variable.
Multiple Regression ** Answ** Regression model with two or more independent variables.
Linear Functions ** Answ** Functions showing steady increase or decrease over x range.
, Logarithmic Functions ** Answ** Functions for variables with quick changes leveling out.
Polynomial Functions ** Answ** Functions like second-order parabolic or third-order with
hills/valleys.
Exponential Functions ** Answ** Functions with y rising/falling at constantly increasing
rates.
Power Functions ** Answ** Functions defining phenomena increasing at a specific rate.
Excel's Trendline Tool ** Answ** Provides best fitting relationship among data alternatives.
R-squared ** Answ** Measure of fit of a line to data, value between 0 and 1.
Standard Error ** Answ** Variability of observed Y-values from predicted values.
Residuals ** Answ** Observed errors, differences between actual and estimated values.
Outlier ** Answ** Extreme value different from the rest of the data.
Multiple R ** Answ** Correlation coefficient showing strength of association in regression
R Square ** Answ** Percentage of variation in dependent variable explained by independent
variables
Adjusted R Square ** Answ** R Square adjusted for number of explanatory variables
Systematic Model Building Approach ** Answ** Process of selecting significant
independent variables in regression
Interaction ** Answ** Effect of one variable dependent on another in regression
Delphi Method ** Answ** Judgmental forecasting using expert panels and iterative
questionnaires
Historical Analogy ** Answ** Forecasting based on comparative analysis with past
situations
Time Series Models ** Answ** Forecasting based on historical data trends, including
seasonal and cyclical effects
Classical Definition of Probability ** Answ** Probabilities deduced from known processes;
theoretical arguments.
Relative Frequency Definition of Probability ** Answ** Probability based on empirical data;
outcome's relative frequency.
Subjective Definition of Probability ** Answ** Probability based on judgment and
experience; subjective predictions.
Random Variable ** Answ** Numerical description of experiment outcomes; can be
continuous or discrete.
Expected Value ** Answ** Corresponds to the mean; helpful in decision-making.
Joint Probabilities ** Answ** Probabilities of two events occurring together.
Conditional Probabilities ** Answ** Probability of an event given another has occurred.
Independent Events ** Answ** Events not influenced by each other; probabilities are
unaffected.
Variance ** Answ** Measure of dispersion; uncertainty of outcomes.
Normal Distribution ** Answ** Symmetric bell-shaped curve; characterized by mean and
standard deviation.
Probability Density Functions ** Answ** Characterizes outcomes of continuous random
variables; total area under function is 1.
Regression Analysis ** Answ** Tool for building models characterizing relationships
between variables.
Simple Regression ** Answ** Regression model with a single independent variable.
Multiple Regression ** Answ** Regression model with two or more independent variables.
Linear Functions ** Answ** Functions showing steady increase or decrease over x range.
, Logarithmic Functions ** Answ** Functions for variables with quick changes leveling out.
Polynomial Functions ** Answ** Functions like second-order parabolic or third-order with
hills/valleys.
Exponential Functions ** Answ** Functions with y rising/falling at constantly increasing
rates.
Power Functions ** Answ** Functions defining phenomena increasing at a specific rate.
Excel's Trendline Tool ** Answ** Provides best fitting relationship among data alternatives.
R-squared ** Answ** Measure of fit of a line to data, value between 0 and 1.
Standard Error ** Answ** Variability of observed Y-values from predicted values.
Residuals ** Answ** Observed errors, differences between actual and estimated values.
Outlier ** Answ** Extreme value different from the rest of the data.
Multiple R ** Answ** Correlation coefficient showing strength of association in regression
R Square ** Answ** Percentage of variation in dependent variable explained by independent
variables
Adjusted R Square ** Answ** R Square adjusted for number of explanatory variables
Systematic Model Building Approach ** Answ** Process of selecting significant
independent variables in regression
Interaction ** Answ** Effect of one variable dependent on another in regression
Delphi Method ** Answ** Judgmental forecasting using expert panels and iterative
questionnaires
Historical Analogy ** Answ** Forecasting based on comparative analysis with past
situations
Time Series Models ** Answ** Forecasting based on historical data trends, including
seasonal and cyclical effects
