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Module 3: Statistics Fundamentals

Learning Objectives
  • Explain mean, median, mode, and standard deviation
  • Interpret a normal distribution and what an outlier is
  • Understand what a p-value does and does not tell you

Statistics gives you the vocabulary to describe data honestly instead of being misled by it. You will learn the three measures of central tendency, mean, median, and mode, and why median income is reported instead of average income in countries with large wealth gaps: a handful of very high earners can drag the mean far above what a typical person actually earns. You will also learn standard deviation as a measure of spread, what a normal (bell-curve) distribution looks like, and how to spot an outlier. Finally, this module demystifies the p-value: a p-value below 0.05 suggests a result is unlikely to be due to random chance alone, but it does not prove a hypothesis is true, nor does it measure the size or importance of an effect.

Module Quiz

1. A p-value of 0.03 in a study means:

2. Why is median often preferred over mean when reporting typical household income?

3. Standard deviation measures: