Chapter One Introduction To Business Statistics

1 | P a g e C h a p t e r 1 : T h e I n t r o d u c t i o n O f S t a t i s t i c s
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CHAPTER
1
[Introduction To Business Statistics]
[Subtopics:-]
[1.1] [Founder and Introduction Of Statistics]
[1.2] [Why Study Importance Of Statistics]
[1.3] [The Growth Of Statistics : Purpose Of Business Research Statistics
Modeling Strategies]
[1.4] [Definition Of Statistic]
[1.5] [Types Of Statistics]
[1.6] [Population versus Sample]
[1.7] [Basic Terms]
[1.8] [Elements Or Members]
[1.9] [Types Of Variables]
[Synopsis]:-
[Statistics introduce the business research TDC Theory Of Development
Cognition Concept :-]
[Statistics Interest To Educators, Researchers,
Entrepreneurs, Managers, Executives And
Students]
[May Adopt Their Understanding Becoming More
Analytical Using A Wide Range Of Other
Educational Material In Association Using
Statistics’ Techniques]
[Calculation Especially Engaging With Future
Decision Personal & Organization’s Productivity]

[1.1] [Founder and Introduction of Statistics]
[In the late 1920s, Dr. William Edward Deming has shown a great interest in Stewart’s work
on statistical control of processes and technical tool as well as control chart on industrial
production and management. In 1940, Dr. Dewing was hired by U.S Census Bureau
Department, enabled him to apply a complex statistical data together with the total
quality control management into industrial operations].
Figure 1: Quotes’ Founder Of Statistics: Dr. William Edward Deming
Table 1: Francis Galton, Karl Pearson, Dr. William Edwards Deming and Florence Night Angle
[Francis Galton is an English born in year
1822 and died in year
1911. He was accredited as one of the
principal founder of statistical theory. His
contributions to the statistics field by
introducing the standard deviation,
correlation, regression and the figures
application of human characteristics such
as height, weight, level of health condition
and so forth relating to University of South
Hampton].
[Karl Pearson (1857-1936) was a major
contributor to the early development of
statistics especially on chi-square test.]1
1
Karl Pearson (1857 – 1936), Department of Statistical Science, University College London (25 Sept 2008); Karl Pearson, School
Of Mathematics and Statistics, University of St Andrews (2003); John Aldrich (2008).

[Florence Night angle]
[1.2] [Why Study Importance of Statistics]
[Statistics plays a vital role almost in every field of our daily living activities inclusive
commercialization, business, physics, chemistry, economics, mathematics, biology,
botany, psychology, astronomy, so forth almost every career needs statistics theory
as well as application2]
[1.2.1] [Business Plan Production]
[Statistics plays an important role in business. A successful business man must be very quick
and accurate in decision making. For example, what behavioral dimensions or
characteristics would we expect to find in people with high achievement motivation in
business production? They would probably have the five following broad characteristics:]
[1.2.1.1] [Elements of Dimension on Number of Hours Employees’ Work Engagement]
[The characteristic will be the employees are constantly working in order to derive the
satisfaction of having achieved and accomplished. However, beyond working hours at
the workplace and at home, where they are likely to carry their unfinished assignments.
Thus, merely, observing and keeping track of the number of hours that they work would
provide an indication of the extent to which business or work production drives them.
Next, keeping track of how frequently people continue to preserve with their job despite
failures offers a good idea of how persevering people to be successful in their business
production. Another example if a Diploma In Accounting and Diploma In Business student
2
“Statistics Of Extremes Theory and Applications”, J Beirlant, Y Goegebeur, J Segers, JL Teugels (2006); Cited by 1692;
“Extreme Value Analysis Of Environmental Time Series An Application Trend Detection In General Level Ozone”, R L Smith,
Statistical Science Journal (1989), Cited 654.

obtain D grading on three quizzes, it consider themselves are having difficulties to
preserve mind oriented achievement. Hence, if the student or business woman failing in
their assignment, they can be measured as by the number of setbacks people
experience on the job yet continue to work. Thus, below mentioned information we can
classify it as one of our independent or dependent variable measurement such as:-]
[a.] [The number of hours per week individuals spends on work-related activities]
[b.] [How persevering they are completing their daily tasks?]
[c.] [How frequently and what reasons they take time off from their jobs?]
[Moreover, in this chapter, the reader will be exposed with the understanding of the
concept of quality operation achievement motivation dimension. Next, the data can be
used as an example ways on how the researchers should be capable to recognize or
measure as data findings in the form of statistic classification. This can be referred as in
Figure 1 that may establish the facts or numerical with graphical presentation that may be
useful for your research data collection as a sampling for the whole population].
Figure 1 : Non-Communicable & Communicable Diseases WHO Human Health Statistics Analysis &
Estimation Report For 2004, 2015, 2030
[1.2.2] [Economics]
[Economics largely depends on statistics. The economist’s researcher is generally finding it
hard to relax and devote their attention to other work-related activity. Hence, the
statistical methods such as graphical presentation are used to prepare these accounts
that may establish the relationship between supply and demand on the country’s imports
or exports either in the form of neither inflation rates nor per capita income. Therefore,
without a good knowledge of statistics may delay the decision making analysis process.]

[1.2.2.1] [Elements of Dimension Unwillingness to Relax]
[Why researchers or economics are normally unwillingly to relax? Normally, as an
economist they need to provide multipurpose indicators for economists and administrators
which lead them become very busy to prepare these accounts. can be asking individuals
such as how often they think of work while away from workplace, what are their hobbies
and how often they spend their time when not at the workplace or cultural activities or
college or library or religious or sports recreation? Thus, these dimensions are measurable.]
[1.2.3] [Mathematics]
[Statistics plays a central role in almost all natural and social sciences. The methods used
are the most reliable by describing the probability averages numbers, dispersions,
estimation that varies of different techniques of pure mathematics like integration,
differentiation and algebra are used in statistics.
[1.2.3.1 Mathematics Requires Research Survey to Obtain Research Variables]
[Statistics and mathematics formula can be formed if there is research survey can be
found. Hence, surveys are useful and powerful for finding answers to research questions
but it cannot be done if it is not correctly targeted with appropriate problem solving skills
presentation which is based on types of variables measurement data comprises of
qualitative and quantitative.]
[Qualitative data]
[A qualitative data is to apply the research methodology which may
include the variable that cannot assume a numerical value but can
be classified into two or more nonnumeric categories such as :-]
Coding System
Decoding Systems
Transcript Data
Categorizing Data Rating
Interview

[Quantitative data]
[A quantitative data is to apply the research methodology using
questionnaires and hypothesis tests effects measurement on two or more
variables sampling that can be measured numerically. This is normally using
observational studies, experiments and probability perception which
associated with the continuous data that having with the numerical values,
percentages values or physical measurements. The two levels between:-
Interval Level Data
Ratio Level Data
[1.2.3.2] [Random Sampling]
[A sample drawn in such a way that each element of the population has some chance of
being selected is the same for each element of the population.]
1. [Write each of the 50 names on a separate piece of paper]
2. [Place all 50 slips in a box and mix them thoroughly]
3. [Randomly draw five slips from the box]
4. [Find any article from newspaper, magazines or internet regarding inferential
and descriptive statistics]
[1.2.3.3] [Stratified Sampling]
[The stratified sampling is an excellent way to ensure that a sample looks like a population
but smaller although it requires the most resources and information segregation of
demographic profile such as age, gender, race, income, political affiliation or
geographical location.]
[1.2.3.4] [Convenience Sampling]
[A convenience sample makes use of data that are convenient to gather. For
example a student could stand at the center of campus, or in front of the library or dining
hall, and sample people as they pass by. This data sometimes can be biased or hidden
data measurement.]

[1.2.3.5] [Identification Knowledge on Type of Population (P) Or Sample (S) characteristics]
Q1
= Answer
Population
Q2 =
Answer
Population
Q3 =
Answer
Sample
Q4 =
Answer
Sample
Q5 =
Answer
Population
Q6 =
Answer
Sample
Q7 =
Answer
Population
Q8 =
Answer
Sample
Q9 =
Answer
Population
[1.2.3.2] [Mathematics Requires Research Survey to Obtain Research Variables
- Population]
[Statistics and mathematics formula can be established if the population of the entire
group of people, events or things articles of international paper critiques that may
capture the interest to be identified by the researchers or business statistics students as a
target sample application of the business statistics. For example, if the CEO of Cosmopoint
College wants to provide quality healthy lifestyle promotion and wants to know more
about what kinds of knowledge research business statistics strategies adopted by College
Institutions, in New Zealand. Then all College Institutions situated in New Zealand will be
the target population of the study.]
[1.2.3.3] [Mathematics Requires To Obtain Research Variables -Element]
[Statistics and mathematics formula can be illustrated if there is an element of the single
entire member of the population available in the research study. For example, each
single professional blue collar worker prefers to exercise and coming to work during the
lecture and flexible hours may increases knowledge research and organization
productivity. Both are an example which can be the factors of the knowledge research
and organization productivity.]

[1.2.3.3.1] [Research Variables –Element of Research Gaps3]
[An element of research gaps are explaining the intention of the CEO to improve the
problems faced by the whole organization and within the country that probably creating
the implications to the whole population in association with the statistics and mathematics
formula.]
[1.2.3.3.2] [Element of Research Survey Using Questionnaires Measurement Scaling]
[Surveys are useful and beneficial for problem solving. Hence, the research questions are
needed to be constructed to determine your Chapter Four (4) Topic of Research Findings.
However, the research survey must have the correct questions, methodologies and
recommendations for Chapter Five (5). With the Chapter One (1) (Introduction), Chapter
Two (2) (Literature Review), Chapter Three (3) Research Methodology will help the CEO to
analyze whether your recommendations as a problem solving to justify the relationship
between your understanding of the research variable effects between the targeted
population and element variable interest sampling4 effects selected by the researchers or
business statistics students.]
[1.2.3.3.3] [Subject Measurement Scaling and Sampling Frame]
[A subject is a single member of the sample that can be also as an element member of
the population which to be analyzed. Next, the sampling frame is a listing refers to the
elements in the population from which the sample is drawn. Moreover, there are three
measurement scale in order to obtain the questionnaires measurement answer from the
respondents providing number of mathematics in statistics as follows:-]
3
J.K White and R.R. Ruh (1973), “Effects Of Personal Values On The Relationship Between Participation And Job Attitudes”,
Administrative Science Quarterly 18 (4), 509.
4
Schreiber et al. (2000) “A Coherent Cluster Of Insights, Experiences, Theories and Heuristics”; Janesick (2000); Miles and
Huberman (1994:3); Avis (2003): 1004.

[1.3] [The Growth of Statistics & Information Technology Leads To The Purpose of Business
Research Statistics Modelling Strategies]
[1.3.1] [Elements of Dimensions on Learning Statistics Mathematics]
[In other words, we can reasonably ascertain that a students’ dimension measurement in
the class learning statistics mathematics may be as follows:]
Figure 2: Concept of Theory Learning, Case Study, Examination, Knowledge Sharing and Business
Research Process Integration Of Human Process Reengineering. Sources Obtained From : Bosua &
Scheepers “Assessment Of Knowledge Model” (BSM) (2007), Yin (1994), Dul & Hak (2007) “Case
Study For Validation Approach”
I) Understanding
Preliminary Abstract
Literature Review Survey
Objectives, Subject, Problem
Statement, Data Collection
ii) Retention
Retains easily
What is learnt from the
learning kit revision may
able to remember and
easy to apply for future
career
iii) Application
Applies whatever has
been taught better grasp
of what learning is all
about
TDC Theoretical of
Distributed Cognition
material after some lapse of
time
Interpretation of findings, integrate, report
preparation other relevant material
& Presentation 2 Weeks Before Exam
Provide questionnaires
Observe
Interview
Answer
Question correctly
By providing example

[1.3.2] [Banking]
[Operational in banking definition is necessary to measure the relevant variables in the
business facilities such as current account, savings account, housing loan, hire purchase
loan, credit cards, debit cards, insurance that offers to the customers whom are having
varies of demographic profile variable which indicates by their :-
Age
Education
Gender
Financial Capabilities
Health’s Condition
Type Of Recreation
[1.3.3] [Accounting and Auditing]
[Statistics plays an important role on providing precision or approximation basis decision.
The correction of the values of current assets is made on the basis of the purchasing
power of money or its current value.]
[1.3.4] [Administration Management]
[Statistical data is very vital especially in preparing and estimating for the pro-forma
administration costs which known as expected expenditures and revenues from different
sources for our federal and provincial government budgets.]
[1.3.5] [Natural, Food Nutrition Safety, Environment, Sports, Tourism and Social Sciences]
[Statistical methods are commonly used for case study research analysis and testing the
significance effects results from the literature reviews, experiments, in depth community’s
feedback interview, food nutrition safety research, public health administration, sports
health promotion, cultural communications and information technology. ]
1.2.8 [Astronomy]

Figure 3: Statistics Meteorology Department Uses Rainfall
Resources, To Explain The Weather Forecast. The research
Centre surveying on parents with children analysis
estimation made through Computer Statistic and Graphical
Models That Produces Research Data Findings Journal
Application
[1.4] [Definition Of Statistical Studies]
[Statistics are defined as a numerical fact or descriptive
piece of data obtained from a study of a large quantity
of population sampling either reviewing from the accounts,
finance, marketing, production, economics audit data
review. Statistical studies can be classified as either
experimental or observational5.]
Examples:
Account receivables shown on a client’s balance sheet
fairly represents the actual amount of receivables account.
Financial analysts use statistical information to guide their
Investments recommendations.
Brand managers can review the scanner statistics and the
Promotional activity statistics to gain better understanding
Relationship between promotional activities and sales.
Quality reflects to the X bar chart and Y production to
[1.4.2][Weather Forecasts]
[Statistics method will explain
on the weather forecast
sometime during the whole
day prior to the computer
model on weather
accessibility.
[Statistical methods are
important to estimate the
movement of stars by using
least squares statistics
method.]
[Astronomy is one of the
oldest branches of statistical
study. It deals with the
measurement of distance,
sizes, masses and densities of
heavenly bodies.]
[1.4.3][Predicting Medical,
Nutritional Studies, Issues or
Diseases]
[Statistics can be very useful
to explain on how valid rate
of effectiveness before any
drug, healthy food vitamins
minerals supplements can be
prescribed. the predicting
disease may hampering
human’s health. The rainfall
and disease explains to
people on the situational
uncontrollable epidemics.]
5 Chapter 1 Data and Statistics page 11, “Essentials Of Statistics For Business and Economics, Revised” David
R Anderson, University of Cincinnati, Dennis J Sweeney, University Of Cincinnati, Thomas A. Williams,
Rochester Institute Of Technology, South Western CENGAGE Learning, HA29.A587(2012),CCKK Library.

monitor the average output emphasize the important
application growth of statistics and information data as
well as its economics and technology data information
collection should help to determine the estimation to
correct a production process.
[1.5] [Types Of Statistics]
[Based on Essentials of Statistics for Business and Economics
authors printed in Canada Nelson Education (2012) and
Deborah J Rumsey, there are three types of
Statistics:-]
Numerical (inferential, discrete, quantitative continuous)
Categorical or quantitative data
Ordinal Scale or rank quantitative data recorded
Descriptive Statistics (newspapers, summarized
Qualitative report)
[Category Of Data]
[1) The categorical data or qualitative data comprised of :]
[Names]
[Categories]
[2)The colors of M & Ms in a bag]
[An example of categorical data]
[3) The numerical data or quantitative data known as:-]
[Numerical values]
[Within approximately]
[2% of the actual percentage]
[The numbers of patient diagnosed with Dengue
is an example of descriptive and inferential graph
numerical data.]
[For many years, businesses have used statistical packages
to help managers use a wide range of statistically
techniques by automating the data processing and
calculations such techniques requirement.]

[1.6] [Population Versus Sample]
[1.6.1] [Quality Health Policy]
[Quality health systems are complex entities which control
By internal and external stakeholders with many differences of perception and knowledge. Ther
significant having a relationship between two tail positive
and negative precision level services as follows:-]
[Clinicians]
[Health Care Providers]
[Purchasers]
[Regulators]
[Government]
[Broader Public]
Sample is the group of
individuals who actually
participate in the study. The
individuals who is
interviewed can be refers as
applying qualitative type of
statistics collection data
study. People who could
have participants but did
not actually participate are
not considered part of your
sample. Example you email
200 people only 100 people
replying your email and this
100 individuals who reply
can be your sample.
Population is the broader group of people to whom
you intend to generalize the results of your study.
Your sample will always be a subset of your
population. Your exact population will depend on
the scope of your study. For instance, say your
research question asks if there is an association
between emotional intelligence and job
satisfaction in nurses who work in Sabah Women
Children Hospital. In this case, your population
might be nurses.

1.7] [Basic Terms]
[Statistics is the art and science of data:-]
Collection
Analyzing
Presenting
Interpreting
[Nearly every college student majoring in business and
economics which requiring the students to take a course
in statistics with the ability to describe the typical statistical
applications for business plan and better economics
decision making analysis. Moreover, there are four scales
of measurement used to obtain data on a particular
variable inclusive :-]
Nominal
Ordinal
Interval
Ratio
[For purposes of statistical analysis, data can be classified as:
Categorical or Quantitative - Categorical data use labels or names to identify an
attribute of each element. Categorical data use either the
nominal or ordinal scale of measurement. Quantitative data are
are numerical values that indicate how much or how many.
Qualitative data –
Qualitative data are
normally having
a descriptive statistics
which having the tabular
data analysis example
matrix table, graphical.
Whereas for the inferential
statistics, it is explaining the
process of statistical
uses data where it was
obtained from a sample to
make estimates or test
hypotheses about the
characteristics of
a population.
“N” = Indicates the number
of
subjects
3Ms = Mean , Median, Mode
Significant Difference
= The measure of whether
results of research were due
to chance or less likely the
observation occurred by Yes
or No analysis in tally with
the elements of the variable.
Correlation = The degree
which factors to be related
to variables as well as
findings of the research
study.

[1.8] [Elements]
[An element pointer is a mean of storing the element
Variables are a means of storing a value and using it
Later contain input a value, component, calculations,
the systems enables people to identify the input as a
variable with formulae and calculations with a different
characteristics:-
Date
Decimal
Moneary
Pointer
Descriptive
statistics are
techniques and
methods that
are used to
describe a set
of values, both
graphically and
numerically to
describe data,
numbers and
graphs.
Inferential statistics
are techniques and
methods that are
used to make a
generalization or
evaluate a claim,
about a population
based on sample
data
“N” = Indicates the number of
subjects
3Ms = Mean , Median, Mode
Significant Difference
= The measure of whether
results of research were due to
chance or less likely the
observation occurred by Yes or
No analysis in tally with the
elements of the variable.
Correlation = The degree which
factors to be related to
variables as well as findings of
the research study.
Example : The Elements or Members or Population
Study Area – [Students and Lecturer]
[The Figure 3.6 explains that research study may
include the elements or members or a population
which comprises of a collection of people, objects, or
measurements that we are interested in analyzing
through a market research investigation (survey)
process. A survey that includes every member of the
population (which examines every member of a

[1.9] [Types Of Variables]
[Variables are concepts that you operationalize, or measure in a sample of data.
patient health performance which accountable for
medical health benefits rewards party especially to whom
are categorized as disable and with income per capita
below RM2,000. However, everyone is having accountablity for retaining the
basic necessity in life to avoid health risk. Moreover, for many
years, businesses have to use statistical packages to help
managers use wide range of statistically techniques by
automating the data processing and calculations techniques.
These applications inclusive MINITAB, SAS and SPSS are normally
available in any research centre or corporate organization.
The theoretical category information data as follows:-]
Independent Variable
Dependent Variable

[References]
1. Fundamentals of Business Statistics, 6th Edition, Dennis J. Sweeney, Thomas A.
William, David R. Anderson, Thomson South Western, 2013.
2. Statistics, 3rd Edition, Lau Too Kya, Phang Yook Ngor & Zainudin Awang, Oxford
Fajar, 2015
Supplementary References Materials:
1. Basic Statistics for Business & Economics, 8th Edition, Douglas A. Lind, William G.
Marchall, Samuel A. Western, Mc Graw Hill, 2012.
2. Introductory Statistics, Neil A. Weiss, 8th Edition, Pearson, 2011.
3. The Applied Business Research : Quantitative and Qualitative Methods,
Measurement of Variables pg 189, Sampling pg 253, U.K Sekaran (1986), “Dual-
Career Families : Contemporary Organizational and Counseling Issues San Franciso:
Jossey Bass, J.K. White and R. R Ruh (1973), “Effects Of Personal Values On The
Relationship Between Participation and Job Attitudes : Administrative Science,
Quarterly 18 (4), 509.

Chapter One Introduction To Business Statistics

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Chapter One Introduction To Business Statistics