The Statistical Power Of A Study: Variability With Minitab (Statistics Project Sample)

Variability with Minitab
Name
Institution
Variability with Minitab
Variability is very hard to control when compared to the mean in a study. One of the disadvantages of variability is that it lessens the statistical power of a study all through hypothesis testing. The statistical power of a test is the probability that a test will detect a change, when the change is in fact true (Helsel, 2011). Understanding how variability may influence the study is important since it allows the researcher to plan accordingly. Generally there are three main types of variability; high, medium and low.
A good example of low variability in data is time series data on certificate of deposits. Certificate of deposits are offered mainly in the United States (Peck et.al, 2015). They are similar to savings accounts, and are insured so usually they are risk free. Low variability increases the power of a test to detect statistical significance. The distinction between the populations under study increases under low variability.
Medium variability can be detected in the financial records and performance of well-established companies such as McDonalds, Jet Blue, and Walmart. Such companies have robust systems and are not easily influenced by prevailing financial conditions. Under medium variability, the difference between the data is not sharp, but exists. The hypothesis shows there is a difference however, very minimal (Peck et.al, 2015).
Finally, high variability in data is likely to be witnessed in ...