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Business Statistics Chapter 1
- 1. © 2003 Prentice-Hall, Inc. Statistics for Managers David Towers Tel: 012437668 dptowers@yahoo.co.uk
- 2. © 2003 Prentice-Hall, Inc. My Experience and Background AALCO – MIS System and ISO 9000 work in largest metal supplier in UK Aberdeen College – College Statistician. Supplying MI for Strategic Management, Funding, PI, Marketing Nortel Networks – Statistician -Improving Quality by Using Statistics to develop Performance Metrics BACS – Senior Statistician. Forecasting trends for the worlds Largest Bank Clearing House Progression LLC – Management Consultancy Sheffield Hallam University - MIS for Strategic Management
- 3. © 2003 Prentice-Hall, Inc. The Course Aim, Purpose and Learning Outcomes Course Aim and Purpose: This course has aims provide a practical and approach to in the use of statistics in order for the students to gain an understanding about: - Basic statistical theory Management statistics used in different organizations; and Statistical techniques used to undertake research. Learning Outcomes: It is intended for a student to gain an understanding: - how to use computers to undertake statistical tasks how to explore and understand data How to display data. how to investigate the relationship between variables. about statistical confidence intervals how to use and select basic statistical hypothesis tests
- 4. © 2003 Prentice-Hall, Inc. Why is this course important for Graduate Students You will learn How to provide and analyze Management information used in Business Government and Educational organizations How to apply basic statistics techniques to conduct in the business and academic environment
- 5. © 2003 Prentice-Hall, Inc. How you will be graded Grading may subject to change The overall course grade will be derived from the following assessments: 50% - Final Exam 20% - Mid Term Exam 10% - Weekly Homework submitted on time. 10% - Chapter Tests (If you do not do homework you will fail test) 10% - Data Analysis Assignment
- 6. © 2003 Prentice-Hall, Inc. Course Content 1. Introduction to statistics and data 2. Presenting Numerical and Categorical Data in Tables and Charts 3. Numerical Descriptive Measures 4. The Normal Distribution Fundamentals of Hypothesis Testing
- 7. © 2003 Prentice-Hall, Inc. About this course This course attempts not to be a traditional statistics course of formulas and definitions. This course will also follow book Business Basic Statistics (8th Edition) Prentice Hall 2003
- 8. © 2003 Prentice-Hall, Inc. Statistics for Managers Chapter 1 Data and its context
- 9. © 2003 Prentice-Hall, Inc. Chapter Topics What is Statistics? Why a Manager Needs to Know About Statistics Some Important Definitions Descriptive Versus Inferential Statistics Why Data are Needed Types of Data and Their Sources Data and its Context
- 10. © 2003 Prentice-Hall, Inc. What is Statistics? Control, Minimize as see past the Variability Methods to display, compare and model
- 11. © 2003 Prentice-Hall, Inc. In pairs think why Managers Need to Know About Statistics? To Know How to properly ______ Information To Know How to Draw (come to) conclusions about Populations Based on Sample _____ To Know How to Improve Processes To Know How to Obtain Reliable ________ Fill in the above blanks with: - Improve, present, Information, forecasts
- 12. © 2003 Prentice-Hall, Inc. Some Important Definitions A Population (Universe) is the Whole Collection of Things Under Consideration A Sample is a Portion of the Population Selected for Analysis A Parameter is a Summary Measure Computed to Describe a Characteristic of the Population A Statistic is a Summary Measure Computed to Describe a Characteristic of the Sample
- 13. © 2003 Prentice-Hall, Inc. Population and Sample Population Sample Use parameters to summarize features Use statistics to summarize features Inference on the population from the sample
- 14. © 2003 Prentice-Hall, Inc. In pairs, identify if the following are Samples or Populations and would the summary measure be a parameter or statistic? Example Everyone living in the world 15 MDM students in a batch of 20 All the people over 18 in a commune All the people you meet in the Psar All the motos in the car park All the stars you can see in the sky All the women in Cambodia All the people in the Psar Population/ Sample Summary Measur e
- 15. © 2003 Prentice-Hall, Inc. Statistical Methods Descriptive Statistics Collecting and describing data Inferential Statistics Drawing conclusions and/or making decisions concerning a population based only on sample data
- 16. © 2003 Prentice-Hall, Inc. Descriptive Statistics Collect Data E.g., Survey Present Data E.g., Tables and graphs Characterize Data E.g., Sample Mean = iX n ∑
- 17. © 2003 Prentice-Hall, Inc. Inferential Statistics Estimation E.g., Estimate the population mean weight using the sample mean weight Hypothesis Testing E.g., Test the claim that the population mean weight is 120 poundsDrawing conclusions and/or making decisions concerning a population based on sample results.
- 18. © 2003 Prentice-Hall, Inc. Why We Need Data To Provide Input to Survey To Provide Input to Study To Measure Performance of Ongoing Service or Production Process To Evaluate Conformance to Standards (Is the target being achieved) To Assist in Formulating Alternative Courses of Action (Plan how to take action when the target is not achieved) To Satisfy Curiosity
- 19. © 2003 Prentice-Hall, Inc. Data Sources Observation Experimentation Survey Print or Electronic Data Sources
- 20. © 2003 Prentice-Hall, Inc. Types of Data Nominal Ordinal Categorical (Qualitative) Numerical (Quantitative) Data
- 21. © 2003 Prentice-Hall, Inc. Hand outs Your Handouts will be on the internet before the lecture. You will need to down load the files and print them so you can take them to the Lecture However, today is your first lecture so we have prepared some paper copies
- 22. © 2003 Prentice-Hall, Inc. Three Types of Variables Data Type Example Categorical (Qualitative) Nominal Hair Color, Political Party Data in Groups Ordinal (Data in Order) Age: Child, Young, Old Education Level: None, High School, Degree, Post Grad Numerical (Quantitative) Age in years 1 year, 2 years 1 man 2 men 3 men… Salary $360….$200000 Always has Units •In pairs work out what type of variables is Make of Car, Subject, Profit in dollars, Religion, Gender, Managerial level e.g.CEO, Director, Manager, Supervisor), Height in meters, Flowers, Rank in Army (General, major,normal soldier) •Give me examples you are not sure about and let the class work the Data Type
- 23. © 2003 Prentice-Hall, Inc. What are the Data? Data Values – not matter what Kind are useless without their context Who (or what) is being surveyed? Essential What Information is being collected? Essential When ( was the data collected – It may not say) Where ( was the data collected – It may not say) Why ( was the data collected – It may not say) How ( was the data collected – It may not say)
- 24. © 2003 Prentice-Hall, Inc. Example 1 Levi Strauss & Company, the makers of jeans, surveyed students. The Students were shown a list of clothing. They were asked : - “Which clothes would be most popular this year?” Who or what is being surveyed? A) Students B) Jeans C) Levi Strauss What Information is being collected? A) Clothes Popularity B)Jeans C) Students Why was the data collected? A) Advertising B)Marketing C) Don’t Know
- 25. © 2003 Prentice-Hall, Inc. Example 2 Advertisements in the New York Times claimed that 84% of frequent business travelers prefer Midway Metrolink flights to Chicago rather than flights on American, United, or T W A. What Information was collected? A) Airline Preference B) Travel Frequency C) Business Travelers Why was the data collected? A) Advertising B)Marketing C) Don’t Know Who or what is being surveyed? A) Business Executives B) Business Travelers C) Experienced Travelers
- 26. © 2003 Prentice-Hall, Inc. Example 3: A survey sponsored by the Gun Industry found that 54% of adults in the U.S. felt that it would not be fair to ban Handguns Why was the data collected? A) Advertising B)Marketing C) To Persuade Government Who or what is being surveyed? A) Robbers B) Soldiers C) U.S. Adults What Information was collected? A) Gun Preference B) Frequency Guns Used C) Show me the question!
- 27. © 2003 Prentice-Hall, Inc. Example 1: In 2004, Toyota Car Company did Market Research by telephone to identify what their customers living in Cambodia wanted in their next car. The interviewer just asked 4 questions: - 1. Sex (Select Male or Female) 2. The Type of Car the respondents wanted (Select Sports Car, 4x4 Car, Luxury Car, Other) 3. The exact price they would pay for a Car the respondents would bay (Answer number of $ dollars) 4. The age of the customer (Answer given by selecting 18-25, 25-40,40-45,45-60, Older than 60) Who/What is getting surveyed Categorical- Nominal Categorical Ordinal Numerical- Scale What information is collected in the telephone survey? e.g. Sex Why Where When How x
- 28. © 2003 Prentice-Hall, Inc. Example 2: In May, a student wanted survey the Motos in a University car park to see what other students drove. He looked at each moto and recorded the following information on paper How Old the Motos (He ticked either New, Old , Very Old) Country the moto was made in The name of the firm that made the moto Distance Driven in miles Complete the following table Who/What is getting surveyed Categorical- Nominal Categorical Ordinal Numerical- Scale What information is collected in the survey? e.g. How old the moto was Why Where When How X
Editor's Notes
- #23: 4.2 Identify Variables as Quantitative or Categorical 4.2 Review Concepts about Data Data that name Categories are called Cat_______, which are sometimes called Qualitative Variables Number data in which numbers are measured are called Qu________ Quantitative data always have
- #24: Who? *Essential Answering those question answers can provide the context about data evaluation. What? * Essential When 4-2 Consider the context of the data Where Why How