Alan Anderson

Alan Anderson, PhD is a teacher of finance, economics, statistics, and math at Fordham and Fairfield universities as well as at Manhattanville and Purchase colleges. Outside of the academic environment he has many years of experience working as an economist, risk manager, and fixed income analyst. Alan received his PhD in economics from Fordham University, and an M.S. in financial engineering from Polytechnic University.

Articles & Books From Alan Anderson

Cheat Sheet / Updated 12-21-2023
Statistics make it possible to analyze real-world business problems with actual data so that you can determine if a marketing strategy is really working, how much a company should charge for its products, or any of a million other practical questions. The science of statistics uses regression analysis, hypothesis testing, sampling distributions, and more to ensure accurate data analysis.
Article / Updated 07-10-2023
You can use the Central Limit Theorem to convert a sampling distribution to a standard normal random variable. Based on the Central Limit Theorem, if you draw samples from a population that is greater than or equal to 30, then the sample mean is a normally distributed random variable. To determine probabilities for the sample meanthe standard normal tables requires you to convertto a standard normal random variable.
Article / Updated 05-03-2023
After you estimate the population regression line, you can check whether the regression equation makes sense by using the coefficient of determination, also known as R2 (R squared). This is used as a measure of how well the regression equation actually describes the relationship between the dependent variable (Y) and the independent variable (X).
Cheat Sheet / Updated 03-10-2022
Summary statistical measures represent the key properties of a sample or population as a single numerical value. This has the advantage of providing important information in a very compact form. It also simplifies comparing multiple samples or populations. Summary statistical measures can be divided into three types: measures of central tendency, measures of central dispersion, and measures of association.
Article / Updated 03-26-2016
Random variables and probability distributions are two of the most important concepts in statistics. A random variable assigns unique numerical values to the outcomes of a random experiment; this is a process that generates uncertain outcomes. A probability distribution assigns probabilities to each possible value of a random variable.
Article / Updated 03-26-2016
Hypothesis testing is a statistical technique that is used in a variety of situations. Though the technical details differ from situation to situation, all hypothesis tests use the same core set of terms and concepts. The following descriptions of common terms and concepts refer to a hypothesis test in which the means of two populations are being compared.
Article / Updated 03-26-2016
Healthcare is one area where big data has the potential to make dramatic improvements in the quality of life. The increasing availability of massive amounts of data and rapidly increasing computer power could enable researchers to make breakthroughs, such as the following: Predicting outbreaks of diseases Gaining a better understanding of the effectiveness and side effects of drugs Developing customized treatments based on patient histories Reducing the cost of developing new treatments One of the biggest challenges facing the use of big data in healthcare is that much of the data is stored in independent "silos.
Article / Updated 03-26-2016
Regression analysis is a statistical tool used for the investigation of relationships between variables. Usually, the investigator seeks to ascertain the causal effect of one variable upon another — the effect of a price increase upon demand, for example, or the effect of changes in the money supply upon the inflation rate.
Article / Updated 03-26-2016
In statistics, hypothesis testing refers to the process of choosing between competing hypotheses about a probability distribution, based on observed data from the distribution. It's a core topic and a fundamental part of the language of statistics. Hypothesis testing is a six-step procedure: 1. Null hypothesis 2.
Article / Updated 03-26-2016
When you're working with populations and samples (a subset of a population) in business statistics, you can use three common types of measures to describe the data set: central tendency, dispersion, and association. By convention, the statistical formulas used to describe population measures contain Greek letters, while the formulas used to describe sample measures contain Latin letters.