Learning Predictive Analytics with Python

Chapter 4. Statistical Concepts for Predictive Modelling

There are a few statistical concepts, such as hypothesis testing, p-values, normal distribution, correlation, and so on without which grasping the concepts and interpreting the results of predictive models becomes very difficult. Thus, it is very critical to understand these concepts, before we delve into the realm of predictive modelling.

In this chapter, we will be going through and learning these statistical concepts so that we can use them in the upcoming chapters. This chapter will cover the following topics:

• Random sampling and central limit theorem: Understanding the concept of random sampling through an example and illustrating the central limit theorem's application through an example. ...