5 · Analytics & data science

13. Statistics for Practitioners

Distributions, sampling, confidence intervals, hypothesis testing and common traps.

10 min read · 3 MCQs

Describe before you model

Report the median and interquartile range alongside the mean — real data is skewed and averages hide it. Understand the distribution's shape, the sampling process and how missing values arose before fitting anything.

Inference

A confidence interval expresses the uncertainty around an estimate; a p-value is the probability of data at least this extreme if the null hypothesis were true. It is not the probability the hypothesis is false, and statistical significance is not practical importance.

Traps

Multiple comparisons inflate false positives — correct for them. Simpson's paradox can reverse a trend when groups are pooled. Survivorship bias, selection bias and confounding all produce confident, wrong conclusions; correlation only implies causation under a design that supports it.

Chapter quiz

3 questions · pass mark 75%
  1. 1. A p-value of 0.03 means…

  2. 2. Testing twenty hypotheses at α = 0.05 yields roughly…

  3. 3. Simpson's paradox occurs when…

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