# Eller Skills Assessment

selection bias
when people have chosen the group they want to be apart of i.e: political offiliation
correlation
lies between -1 and 1
what does a negative correlation suggest
x goes up, y goes down
what does a positive correlation suggest
x goes up, x goes up
no correlation
= to 0
likert scale
1-10 scale to map qualitative feelings into quantitative
inferential stats
making conclusions about a population from a sample
explanatory stats
using what you learn to explain what you have observed
Law of large numbers and the central limit theorem
what happens to accuracy as your sample size increases, it gets better! as n goes up variability goes down.
variance
1-100 large 1-10 small
probability coin flips 4 flips
4 flips- 1/2 x 1/2= 1/4 multiply the individual probabilities when they are independent probabilities to begin with
Compliment
not- what is not in the set
Union
U means or
Intersection
N means and
trimmed mean
taking out % of outliers then calculating the mean
what is sensitive to outliers
mean and mode, median and trimmed mean are not.
normal dist v
skewed distribution
mean = median
mean /= median
calculation for o
(sum of (x-u)/n)^.5 population
using z scores
reject Ho if your observed z > than critical
single v multivariable regression
=a+B1+e
=a+B2+B3+e
Independent v dependent variable
dependent left hand side of equation (can only have one)
independent on right hand side (can be more than one)
GAP
generally accepted accounting principles
cash accounting
when theres exchanges of cash
accrual accounting
only method allowed by GAP
events that change a company’s financial statements are recognized in the period they occur rather than in the period in which cash is paid or received
historical cost principle
recording something on your books for what you paid for
revenue recognition
realized or realizable
revenue is not realized until it is earned
Matching principle
matchs expenses with revenues
assets=
L+SE
balance sheet
assets, liabilities, equity
Income statement
revenues, expenses
statement of cash flows
changes in cash holdings
calculating assets from a trial balance
cash+ ar- AFDA+inventory+ equipment- Acc Dep
ending retained earnings
=beginning retained earnings+common stock+ Net income (revenues-expenses)- dividends… Stockholders equity would be the ending retained earnings+Paid in capital
find future value, compounding
x 1+IR IE: 1+10%ir= 1.1
find present value, compounding
/ 1+ IR
Earnings per share
% return or profit obtained by investors= Net income/ equity
Return on Equity
% return or profit obtained by investors per share of common stock.
=net income/common stock out standing
Price Earnings Ratio
market price of stock/ earning per share
used to reflect whether investors think earnings per share will increase or decrease on average 8 to 1
The Payout Ratio
Total cash dividends paid on common stock/ net income
measures the % of earnings distributed in form of cash dividends to common stockholders
in an experiment to determine whether more rain causes umbrellas Ho=
Ho= rain has no effect on umbrellas
Ha=rain has an effect on umbrellas
what does a journal entry have to have
one debit and one credit
formula for depreciation
Original purchase price- Salvage value/ useful life