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Key Concepts in Statistics

There are many concepts in statistics and sometimes these concepts are applied, along with economics concepts and models as well. Here we have described some of the most common statistics concepts that include concepts from descriptive stats, regression modelling, and factor analysis.

The factor analysis is a commonly used technique for dimension reduction of the data. As we are aware that raw data needs to be processed into meaningful order before it can be used for analysis. Often it is found that there is high number of variables that impact the response variable so, in order to avoid the problem of multicollinearity which is intercorrelation of independent variables, factor analysis is performed. The factor analysis technique brings together all those variables that have high correlation and then total class of variables is reduced into factors that are non-correlated and can be proceeded with regression analysis.

The range of tabular and graphical interpretations summarise the data which is expressed clearly in context of the research or statistical problem. The central tendency measures enhance looking into the key features of the data so that preparedness for the further statistical treatments can be undertaken at this preliminary stage.
There are many concepts in statistics and sometimes these concepts are applied, along with economics concepts and models as well. Here we have described some of the most common statistics concepts that include concepts from descriptive stats, regression modeling, and factor analysis.
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