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How to identify errors in statistical data using the example of a formula mistake in excel that caused some values to be more than 4 standard deviations away from the mean. It also covers how to find the standard deviation of iq scores and calculate percentiles for normal distributions.
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Math 102 & Core 143
Note: All data below is ficticious.
You have list of 1000 data that have been entered into Excel. You then enter a formula to convert these into standard units. You notice that the first 10 values for the conversion are:
2 , 2. 3 , 4. 5 , −. 3 , −. 8 , − 6. 1 , 5. 5 ,. 2 , 1. 1 , 4. 7.
You immediately check your formula and discover a mistake. How did you catch it so quickly?
There are 5 numbers more than 4 SD’s away from the mean. This is much more than expected since it is highly unlikely for a data point to be more than 4 SD’s away from the mean.
In standard units, z ≈ 2. 33 has 1% of the data to its right (look up 98% in between −z and z). Hence, set 135 − 100 SD
From here, we get SD ≈ 15.
a) What percentage of weeks have sales of more than $1850?
We convert 1850 to standard units: 1850160 −^1690 = 1. Looking up z = 1 on the chart gives about 68% between − 1 and 1. Hence, about 16% of sales are more than $1850.
b) What sales level corresponds to the 29th^ percentile?
We want to look up 100 −2(29) = 42% on the chart. This gives z ≈ −. 55. Hence, X− 1601690 = −. 55 and we get that the desired percentile is X = $1602.
No, not all distributions need be Normal. This was either an easy test or was a test taken by a very good class.