1. In ordinary language, explain the meaning of the following concepts and their relevance in

statistical inference;

a) Random sample

b) Independent and identically distributed sample (iid sample)

c) Unbiasedness

d) Consistency

e) Mean Square Error

f) Power of a test

g) Level of significance

h) Degrees of Freedom

i) Statistical Significance

2. Distinguish between following pairs of concepts

a) Estimator and estimate

b) Parameter and statistic

c) pdf and pmf

d) CDF and pdf

e) Point estimate and interval estimate

f) Z-distribution and t-distribution

g) p-value and level of significance

h) Type I and Type II error

i) Covariance and Correlation

j) Correlation and Causality

k) Null hypothesis and alternative hypothesis

l) Pearson correlation coefficient and Spearman correlation coefficient.

m) Logit and Probit models