Unit 3 Data analysis
20 dot points, in syllabus order. Each dot point has a focused answer, with exam-style questions and worked answers where available.
Why does an association between two variables not prove that one causes the other, and why is an experiment needed to establish cause and effect?
How do you summarise the distribution of a numerical variable with measures of centre and spread, choose the right measures, and use them to compare distributions?
How do you use frequency tables, two-way tables and percentage segmented bar charts to identify and describe an association between two categorical variables?
What is a perpetuity, how does the balance stay constant when the payment exactly equals the interest, and how do you find the payment or the principal?
When a scatterplot is curved, how do the squared, log and reciprocal transformations straighten the data so a least-squares line can be fitted?
How do seasonal indices quantify a repeating pattern, and how do you deseasonalise and reseasonalise time series data?
Why do we display data that ranges over several orders of magnitude on a logarithmic (base 10) scale, and how do we read and interpret such a display?
How does the normal distribution describe data, and how do the 68-95-99.7 rule and standardised z-scores let you compare and find percentages?
What is a residual, how do we construct and read a residual plot, and how does a residual analysis tell us whether a linear model is appropriate?
How do simple and compound interest differ, how does each follow a recurrence relation, and how do you compare them with effective rates?
How do you display and describe a time series, and how do moving-mean and moving-median smoothing reveal the underlying trend?
How do you build a boxplot from a five-number summary, test for outliers, and compare two groups using parallel boxplots?
How is a reducing balance loan modelled with a recurrence relation and an amortisation table, and how do we use a finance solver to analyse repayments, interest and the effect of changing the rate or repayment?
How do flat rate, unit cost and reducing balance depreciation reduce the value of an asset, and how are they modelled with a recurrence relation and a rule?
How do back-to-back stem plots, parallel dot plots and parallel boxplots show whether a numerical variable is associated with a categorical variable?
How do you measure the association between two numerical variables and fit a least-squares line to model and predict?
How does an annuity provide a regular income from a lump sum, and how do we model and analyse its balance with a recurrence relation, an amortisation table and a finance solver?
How do first-order linear recurrence relations generate sequences, and how do we recognise arithmetic, geometric and other patterns of growth and decay?
How do you classify data, choose the right display, and describe the shape, centre and spread of a distribution?
How do annuity investments and savings plans grow when regular payments are added to a compounding balance, and how is the finance solver set up for them?
