Demand Curve vs Supply Curve Demand and supply are fundamental concepts in the study of economics that are very closely related to one another. Demand looks at the buyer’s side, and supply looks at the seller’s side. The demand and supply curves are graphical representations of the law of demand and law of supply […]
Difference Between Cost Benefit and Cost Effectiveness
Cost Benefit vs Cost Effectiveness Cost benefit analysis and cost effective analysis are both tools used for decision making and help in evaluating a project/investment/course of action in terms of either their feasibility and profitability or value and effectiveness. Cost benefit and cost effectiveness also allow decision makers to compare alternatives and select the […]
Difference Between Consumer Surplus and Producer Surplus
Consumer Surplus vs Producer Surplus Consumer surplus and producer surplus are terms that are used hand in hand to explain the benefits that exist for a consumer and producer when buying and selling goods in a market place. Consumer surplus is the benefit available to the consumer and producer surplus is the benefit available […]
Difference Between Collateral and Mortgage
Collateral vs Mortgage Mortgages and collateral are terms that are closely related to one another and are constantly referred to when discussing loans and lending. Collateral acts as an insurance policy for lenders which can be sold to recover losses when a borrower defaults on their loan. Mortgage is a loan that uses a […]
Difference Between Interval and Ratio
Interval vs Ratio Interval scale and ratio scale are two of the levels of measurement or scales of measurement where they describe the attributes in quantitative scales. The concept was first introduced by the psychologist Stanley Smith Stevens in 1946. In his article titled “on the theory of the scales of the measurements” published […]
Difference Between Gaussian and Normal Distribution
Gaussian vs Normal Distribution First and foremost the normal distribution and the Gaussian distribution are used to refer the same distribution, which is perhaps the most encountered distribution in the statistical theory. For a random variable x with Gaussian or Normal distribution, the probability distribution function is P(x)=[1/(σ√2π)] e^(-(x-µ)2/2σ2 ); where µ is the […]
Difference Between Variance and Covariance
Variance vs Covariance Variance and covariance are two measures used in statistics. Variance is a measure of the scatter of the data, and covariance indicates the degree of change of two random variables together. Variance is rather an intuitive concept, but covariance is defined mathematically in not that intuitive at first. More about Variance […]
Difference Between Correlation and Covariance
Correlation vs Covariance Correlation and covariance are closely related concepts in theoretical statistics. They are important in determining the relationship between two random variables. What is Correlation? Correlation is a measure of the strength of the relationship between two variables. The correlation coefficient quantifies the degree of change of one variable based on the […]
Difference Between Parameter and Statistic
Parameter vs Statistic Consider these questions; what is the average income of a person in your country, what is the average height of women in the world, and what is the average weight of the eggs produced by certain breeds of fowl? It is impossible to do a survey that includes all the subjects of […]
Difference Between Regression and ANOVA
Regression vs ANOVA Regression and ANOVA (Analysis of Variance) are two methods in the statistical theory to analyze the behavior of one variable compared to another. In regression, it is often the variation of dependent variable based on independent variable while, in ANOVA, it is the variation of the attributes of two samples from […]