Statistics is a branch of mathematics dealing with data collection, organization, analysis,

interpretation and presentation Statistics is a term used to summarize a process

that an analyst uses to characterize a data set. If the data set depends
on a sample of a larger population, then the analyst can develop
interpretations about the population primarily based on the statistical
outcomes from the sample. Statistical analysis involves the process of
gathering and evaluating data and then summarizing the data into a
mathematical form.

Advantages Disadvantages

 Because it is secondary data it is usually cheap and is less time  The researcher cannot check validity and can
consuming because someone else has compiled it causation theory only draw patterns and corre

 Patterns and correlations are clear and visible
 Taken from large samples so the generalisability is high
 Can be used and re-used to check different variables
 Can be imitated to check changes which increases reliability
and representativeness
 Statistical data is often secondary data which
be misinterpreted
 Statistical data is open to abuse it can be man
show the point the researcher wants to show
 Because this is often secondary data it is hard

Average

A calculated "central" value of a set of numbers.

Difference Between Mutually Exclusive and

Independent Events
May 11, 2016 By Surbhi S 1 Comment
Probability is a mathematical concept, which has now become a full-fledged
discipline and is a vital part of statistics. Random experiment in probability
is a performance that generates a certain outcome, purely based on chance.
The results of a random experiment are called event. In probability, there
are various types of events, as in simple, compound, mutually exclusive,
exhaustive, independent, dependent, equally likely, etc. When events
cannot occur at the same time, they are called mutually exclusive

On the other hand, if each event is unaffected by other events, they are
called independent events. Take a full read of the article presented
below to have a better understanding of the difference between mutually
exclusive and independent events.

Content: Mutually Exclusive Event Vs Independent Event

1. Comparison Chart
2. Definition
3. Key Differences
4.

Conclusion
Comparison Chart

BASIS FOR MUTUALLY EXCLUSIVE

INDEPENDENT EVENTS
COMPARISON EVENTS

Meaning Two events are said to be Two events are said to be independent,
mutually exclusive, when their when the occurrence of one event cannot
occurrence is not simultaneous. control the occurrence of other.

Influence Occurrence of one event will Occurrence of one event will have no
result in the non-occurrence of influence on the occurrence of the other.
the other.

Mathematical P(A and B) = 0 P(A and B) = P(A) P(B)

formula

Sets in Venn Does not overlap Overlaps

diagram

Definition of Mutually Exclusive Event

Mutually exclusive events are those which cannot occur concurrently, i.e.
where the occurrence of one event results in non-occurrence of the other
event. Such events cannot be true at the same time. Therefore, the
happening of one event makes the happening of another event impossible.
These are also known as disjoint events.

Let’s take an example of tossing of a coin, where the result would either be
head or tail. Both head and tail cannot occur simultaneously. Take another
example, suppose if a company wants to purchase machinery, for which it
has two options Machine A and B. The machine which is cost effective and
productivity is better, will be selected. The acceptance of machine A will
automatically result in the rejection of machine B and vice versa.

Definition of Independent Event

As the name suggests, independent events are the events, in which the
probability of one event does not control the probability of the occurrence
of the other event. The happening or non-happening of such an event has
absolutely no effect on the happening or non-happening of another event.
The product of their separate probabilities is equal to the probability that
both events will occur.

Let’s take an example, suppose if a coin is tossed twice, tail in the first
chance and tail in the second, the events are independent. Another example
for this, Suppose if a dice is rolled twice, 5 in the first chance and 2 in the
second, the events are independent.

Key Difference Between Mutually Exclusive and

Independent Events
The significant differences between mutually exclusive and independent
events are elaborated as under:

1. Mutually exclusive events are those events when their occurrence is

not simultaneous. When the occurrence of one event cannot control
the occurrence of other, such events are called independent event.
2. In mutually exclusive events, the occurrence of one event will result in
the non-occurrence of the other. Conversely, in independent events,
occurrence of one event will have no influence on the occurrence of
the other.
3. Mutually exclusive events are represented mathematically as P(A and
B) = 0 while independent events are represented as P (A and B) =
P(A) P(B).
4. In a Venn diagram, the sets do not overlap each other, in the case of
mutually exclusive events while if we talk about independent events
the sets overlap.

Definition - What does Histogram mean?

A histogram is a type of graph that is widely used in mathematics, especially in
statistics. The histogram represents the frequency of occurrence of specific
phenomena which lie within a specific range of values, which are arranged in
consecutive and fixed intervals. The frequency of the data occurrence is represented
by a bar, hence it looks very much like a bar graph.

raw data (source data or atomic

data)

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Raw data (sometimes called source data or atomic data) is data that has
not been processed for use. A distinction is sometimes made between
data and information to the effect that information is the end product of
data processing. Raw data that has undergone processing is sometimes
referred to as cooked data.

Although raw data has the potential to become "information," it requires

selective extraction, organization, and sometimes analysis and
formatting for presentation. For example, a point-of-sale terminal (POS
terminal) in a busy supermarket collects huge volumes of raw data each
day, but that data doesn't yield much information until it is processed.
Once processed, the data may indicate the particular items that each
customer buys, when they buy them, and at what price. Such information
can be further subjected to predictive technologyanalysis to help the
owner plan future marketing campaigns.

As a result of processing, raw data sometimes ends up in a database,

which enables the data to become accessible for further processing and
analysis in a number of different ways.

DEFINITION of Kurtosis
Like skewness, kurtosis is a statistical measure that is used to describe
the distribution. Whereas skewness differentiates extreme values in one
versus the other tail, kurtosis measures extreme values in either tail.
Distributions with large kurtosis exhibit tail data exceeding the tails of the
normal distribution (e.g., five or more standard deviations from the
mean). Distributions with low kurtosis exhibit tail data that is generally
less extreme than the tails of the normal distribution.

For investors, high kurtosis of the return distribution implies that the
investor will experience occasional extreme returns (either positive or
negative), more extreme than the usual + or - three standard deviations
fro/m the mean that is predicted by the normal distribution of returns.
This phenomenon is known as kurtosis risk.

BREAKING DOWN Kurtosis

Kurtosis is a measure of the combined weight of a distribution's tails
relative to the center of the distribution. When a set of approximately
normal data is graphed via a histogram, it shows a bell peak and most
data within + or - three standard deviations of the mean. However, when
high kurtosis is present, the tails extend farther than the + or - three
standard deviations of the normal bell-curved distribution.

Kurtosis is sometimes confused with a measure of the peakedness of a

distribution. However, kurtosis is a measure that describes the shape of
a distribution's tails in relation to its overall shape. A distribution can be
infinitely peaked with low kurtosis, and a distribution can be perfectly flat-
topped with infinite kurtosis. Thus, kurtosis measures “tailedness,” not
“peakedness.”

Types of Kurtosis
There are three categories of kurtosis that can be displayed by a set of
data. All measures of kurtosis are compared against a standard normal
distribution, or bell curve.

The first category of kurtosis is a mesokurtic distribution. This distribution

has kurtosis statistic similar to that of the normal distribution, meaning
that the extreme value characteristic of the distribution is similar to that
of a normal distribution.

The second category is a leptokurtic distribution. Any distribution that is

leptokurtic displays greater kurtosis than a mesokurtic distribution.
Characteristics of this type of distribution is one with long tails (outliers).
The prefix of "lepto-" means "skinny," making the shape of a leptokurtic
distribution easier to remember. The “skinniness” of a leptokurtic
distribution is a consequence of the outliers, which stretch the horizontal
axis of the histogram graph, making the bulk of the data appear in a
narrow (“skinny”) vertical range. Some have thus characterized
leptokurtic distributions as “concentrated toward the mean,” but the more
relevant issue (especially for investors) is that there are occasional
extreme outliers that cause this “concentration” appearance. Examples
of leptokurtic distributions are the T-distributions with small degrees of
freedom.

The final type of distribution is a platykurtic distribution. These types of

distributions have short tails (paucity of outliers). The prefix of "platy-"
means "broad," and it is meant to describe a short and broad-looking
peak, but this is an historical error. Uniform distributions are platykurtic
and have broad peaks, but the beta(.5,1) distribution is also platykurtic
and has an infinitely pointy peak. The reason both these distributions are
platykurtic is that their extreme values are less than that of the normal
distribution. For investors, platykurtic return distributions are stable and
predictable, in the sense that there will rarely (if ever) be extreme
(outlier) returns.