Jerry is a newly hired analyst to monitor the performance of Dunkin' Brands, an American restaurant holding company which runs two chains of fast-food restaurants: Dunkin' Donuts and Baskin-Robbins. Given the sales figures of all the stores across the United States, Jerry calculates the following statistics: Mean: the average of the sales figures. Median: the value separating the higher half from the lower half of the sales figures Mode: the number that occurs most frequently in the data Variance: it measures how far the sales figures are spread out from their average value Jerry recalls the implications of the statistics. Which one of them is correct?
Inverse Normal Distribution
The method used for finding the corresponding z-critical value in a normal distribution using the known probability is said to be an inverse normal distribution. The inverse normal distribution is a continuous probability distribution with a family of two parameters.
Mean, Median, Mode
It is a descriptive summary of a data set. It can be defined by using some of the measures. The central tendencies do not provide information regarding individual data from the dataset. However, they give a summary of the data set. The central tendency or measure of central tendency is a central or typical value for a probability distribution.
Z-Scores
A z-score is a unit of measurement used in statistics to describe the position of a raw score in terms of its distance from the mean, measured with reference to standard deviation from the mean. Z-scores are useful in statistics because they allow comparison between two scores that belong to different normal distributions.
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