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Practical Statistics for Data Scientists

Book Description

A key component of data science is statistics and machine learning, but only a small proportion of data scientists are actually trained as statisticians. This concise guide illustrates how to apply statistical concepts essential to data science, with advice on how to avoid their misuse.

Many courses and books teach basic statistics, but rarely from a data science perspective. And while many data science resources incorporate statistical methods, they typically lack a deep statistical perspective. This quick reference book bridges that gap in an accessible, readable format.

Table of Contents

  1. 1. Exploratory Data Analysis
    1. Elements of Structured Data
      1. Further Reading
    2. Rectangular Data
      1. Data Frames and Indexes
      2. Graph Data
      3. Further Reading
    3. Estimates of Location
      1. Mean
      2. Median and Robust Estimates
      3. Example: Location Estimates of Population and Murder Rates
      4. Further Reading
    4. Estimates of Variability
      1. Standard Deviation and Related Estimates
      2. Estimates Based on Percentiles
      3. Example: Variability Estimates of State Population
      4. Further Reading
    5. Exploring the Data Distribution
      1. Percentiles and Boxplots
      2. Frequency Table and Histograms
      3. Density Estimates
      4. Further reading
    6. Exploring Binary and Categorical Data
      1. Mode
      2. Expected Value
      3. Further Reading
    7. Correlation
      1. Scatterplots
    8. Exploring Two or More Variables
      1. Hexagonal Binning and Contours (plotting numeric vs. numeric)
      2. Two Categorical Variables
      3. Categorical and Numeric Data
      4. Visualizing Multiple Variables
      5. Further Reading
    9. Conclusion
  2. 2. Data and Sampling Distributions
    1. Random sampling and sample bias
      1. Bias
      2. Random Selection
      3. Size Versus Quality
      4. Sample Mean Versus Population Mean
      5. Further Reading
    2. Selection bias
      1. Regression to the mean
      2. Further Reading
    3. Sampling Distribution of a Statistic
      1. Central Limit Theorem
      2. Standard error
      3. Further Reading
    4. The bootstrap
      1. Resampling versus bootstrapping
      2. Further Reading
    5. Confidence intervals
      1. Further reading
    6. Normal distribution
      1. Standard Normal and QQ-Plots
    7. Long-Tailed Distributions
      1. Further Reading
    8. Student’s t distribution
      1. Further Reading
    9. Binomial distribution
      1. Further Reading
    10. Poisson and Related Distributions
      1. Poisson Distributions
      2. Exponential distribution
      3. Inference
      4. Weibull distribution
      5. Further reading
    11. Summary
  3. 3. Statistical Experiments and Significance Testing
    1. A-B Testing
      1. Why have a control group?
      2. Why just A-B? Why not C, D, etc.?
      3. For Further Reading
    2. Hypothesis Test
      1. The Null Hypothesis
      2. Alternative hypothesis
      3. One-way, two-way hypothesis test
      4. Further Reading
    3. Resampling
      1. Resampling: The Bottom Line for Data Science
      2. For Further Reading
    4. Statistical Significance and P-values
      1. P-value
      2. Alpha
      3. Type 1 and Type 2 Error
      4. Data Science and P-Values
      5. Further Reading
    5. t-test
      1. Further Reading
    6. Multiple Testing
      1. Further Reading
    7. Degrees of freedom
      1. Further Reading
    8. ANOVA
      1. 2-way ANOVA
      2. Further Reading
    9. Chi-square test
      1. Fisher’s Exact Test
      2. Relevance for data science
      3. Further Reading
    10. Multi-arm bandit algorithm
      1. Further Reading
    11. Power and sample size
      1. Sample Size
      2. For Further Reading
    12. Summary
  4. 4. Regression and Prediction
    1. Simple Linear Regression
      1. The Regression Equation
      2. Fitted Values and Residuals
      3. Least Squares
      4. Prediction Versus Explanation (Profiling)
      5. Further Reading
    2. Multiple Linear Regression
      1. Example: King County Housing Data
      2. Assessing the Model
      3. Model Selection and Stepwise Regression
      4. Weighted Regression
    3. Prediction Using Regression
      1. The Dangers of Extrapolation
      2. Confidence and Prediction Intervals
    4. Factor Variables in Regression
      1. Dummy Variables Representation
      2. Factor Variables With Many Levels
      3. Ordered factor variables
    5. Interpreting the Regression Equation
      1. Correlated Predictors
      2. Multicollinearity
      3. Confounding Variables
      4. Interactions and Main Effects
    6. Testing the Assumptions - Regression Diagnostics
      1. Outliers
      2. Influential values
      3. Heteroskedasticity, Non-normality and Correlated Errors
      4. Partial Residual Plots and Nonlinearity
    7. Polynomial and Spline Regression
      1. Polynomial
      2. Splines
      3. Generalized Additive Models