Exploring Binary and Categorical Data

• Key terms
  
• Expected Value:
  • A marketer for new cloud technology offers two levels of service
    • one priced at $300/month
    • other is prices ad $50/month
  • The marketer offers free webinars to generate leads and the firm figures that 5% of attends will sign up for $300 service and 15% will sign up for $50 service and 80% will not signup anything.
  • The expected value is calulate as follows
    • Multiply each outcome by its probability of occurence
    • sum these values
  • EV = (0.05 * 300) + (0.15 * 50) + 0.8 * 0 = 15 + 7.5 = 22.5
  • The expected value is 22.5$

Correlation

• Key terms
  
• Refer Here for the scatter plots