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Data Analysis Using SQL and Excel - Second Edition
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The binomial distribution just counts up all the different combinations and determines which proportion of them meets particular conditions. This is very powerful for finding confidence intervals for a random process, as described in the previous section. This section introduces an alternative method that estimates a standard deviation for a ratio, and uses the normal distribution to approximate confidence ratios.
Using the normal distribution has two advantages over the binomial distribution. First, it is applicable in more areas than the binomial distribution; for instance, the methods here are more suited for comparing two ratios and asking whether they are the same. Second, SQL does not support the calculations needed for the binomial distribution, but it does support almost all the calculations needed for this method.
This section introduces the method for estimating the standard deviation of a ratio (which is actually derived from the standard error of...
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