Basics of ML & AL Week 2 Challenge

1)Calculate all 4 business moments using pen and paper for the below data set?

2)What is the significance of expected value when simple mean (Sum of all observations/number of observations) is already in place

sol: mean is the simple average of all the values, expected value of expectation is the average value of a random variable which is probability-weighted.

3)Having skewness in the curve considered to be bad in the analysis?

sol:

Not bad nor Good it depends on data and it depends on the business criteria

4)Evaluate the probabilities for continuous normal distribution with given mean = 680 and standard deviation = 31

a)P(X<711)

83.85%

b)P(X>740)

2.35%

c)P(600<X<720)

17%

d)P(X=720)

0

5)Explain the curve on the right side?

34.1% of data lies in one standard deviation and 13.6% of data lies in second standard deviation.

6) Importance of Kurtosis?

kurtosis determines the heaviness of the distribution tails.” The understanding shape of data is a crucial action. It helps to understand where the most information is lying and analyze the outliers in a given data.