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introductiontobusinessstatistics-anithanew.pptx
- 1. Introduction
- 2. Learning Objectives In this chapter you learn: How business uses statistics The basic vocabulary of statistics
- 3. Why Learn Statistics Make better sense of the world Internet articles / reports Magazine articles Newspaper articles Television & radio reports Make better business decisions Business memos Business research Technical journals Technical reports
- 4. In Business, Statistics Has Many Important Uses To summarize business data To draw conclusions from business data To make reliable forecasts about business activities To improve business processes
- 5. Two Different Branches Of Statistics Are Used In Business Statistics The branch of mathematics that transforms data into useful information for decision makers. Descriptive Statistics Collecting, summarizing, presenting and analyzing data Inferential Statistics Using data collected from a small group to draw conclusions about a larger group
- 6. These Two Branches Are Used In The Important Activities To summarize business data Descriptive methods used to create charts & tables To draw conclusions from business data Inferential methods used to reach conclusions about a large group based on data from a smaller group To make reliable forecasts about business activities Inferential methods used to develop, quantify, and improve the accuracy of predictive models To improve business processes
- 7. Descriptive Statistics Collect data e.g., Survey Present data e.g., Tables and graphs Characterize data e.g., The sample mean
- 8. 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 pounds Drawing conclusions about a large group of individuals based on a smaller group.
- 9. Basic Vocabulary of Statistics VARIABLES Variables are a characteristics of an item or individual and are what you analyze when you use a statistical method. DATA Data are the different values associated with a variable.
- 10. Basic Vocabulary of Statistics POPULATION A population consists of all the items or individuals about which you want to draw a conclusion. The population is the “large group” SAMPLE A sample is the portion of a population selected for analysis. The sample is the “small group” PARAMETER A parameter is a numerical measure that describes a characteristic of a population. STATISTIC A statistic is a numerical measure that describes a characteristic of a sample.
- 11. Population vs. Sample Population Sample Measures used to describe the population are called parameters Measures used to describe the sample are called statistics
- 12. What is Statistics? Statistics : Definition: A collection of tools and techniques that are used to convert data into meaningful information. Statistics is the study of collecting, organizing and summarizing data, used to convert data into a meaningful information.
- 13. What does a statistician do? • Collects numbers or data • Systematically organizes or arranges the data • Analyzes the data…extracts relevant information to provide a complete numerical description • Infers general conclusions about the problem using this numerical description
- 14. Different types of data 1. Primary Data 2. Secondary Data 3. Qualitative Data 4. Quantitative Data
- 15. Primary and Secondary Data Data can be classified as either Primary or Secondary. Primary Data: Primary data means original data that has been collected specially for the purpose in mind. It means when an authorized organization, investigator or an enumerator collects the data for the first time from the original source. Data collected this way is called primary data. For example: Your own questionnaire, survey, information.
- 16. Primary and Secondary Data
- 17. Primary and Secondary Data Secondary Data: Secondary data is data that has been collected for another purpose. When we use Statistical Method with Primary Data from another purpose for our purpose we refer to it as Secondary Data. It means that one purpose's Primary Data is another purpose's Secondary Data. Secondary data is data that is being reused. Usually in a different context. For example: Data from a Book, Newspaper, Magazine, or Internet.
- 18. Qualitative & Quantitative data Qualitative Quantitative Discrete Continous
- 19. • Qualitative Data measures a quality or characteristic on each experimental unit. It is a categorical data. • Examples: • Hair color (black, brown, blonde, white, grey, mahogany) • Make of car (Dodge, Honda, Ford, Toyota) • Gender (male, female) • Place of birth (Riyadh, Jeddah, Yanbu) Qualitative & Quantitative data
- 20. Quantitative data is a numerical measurement expressed in terms of numbers. For example: Temperature= “26 degrees" Height = "1.8 meters" Length = “2.5 feet” Age = “9 years” Note: Quantitative data always are associated with a scale measure (degree/feet/years). Qualitative & Quantitative data
- 21. • Quantitative Data measure a numerical quantity on each experimental unit. Examples: For each orange tree, the number of oranges is measured. – Quantitative • For a particular day, the number of cars entering a college campus is measured. – Quantitative • Time until a light bulb burns out (4 months) Qualitative & Quantitative data