introductiontobusinessstatistics-anitha.pptx

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This document introduces statistics and how it is used in business. It discusses two main branches of statistics - descriptive statistics which collects and summarizes data, and inferential statistics which draws conclusions about larger groups based on smaller samples. Descriptive statistics uses methods like charts and tables to summarize data, while inferential statistics allows conclusions to be made about large populations based on analyzing smaller samples. The document provides basic vocabulary for statistics, defining key terms like variables, data, population, sample, parameters, and statistics.

Education

Why Learn Statistics
Copyright ©2011 Pearson Education 1-3
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

In Business, Statistics Has
Many Important Uses
Copyright ©2011 Pearson Education 1-4
 To summarize business data
 To draw conclusions from business data
 To make reliable forecasts about business
activities
 To improve business processes

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
Copyright ©2011 Pearson Education 1-5

These Two Branches Are Used
In The Important Activities
Copyright ©2011 Pearson Education 1-6
 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

Descriptive Statistics
 Collect data
 e.g., Survey
 Present data
 e.g., Tables and graphs
 Characterize data
 e.g., The sample mean
Copyright ©2011 Pearson Education 1-7

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.
Copyright ©2011 Pearson Education 1-8

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.
OPERATIONAL DEFINITIONS
Data values are meaningless unless their variables have operational
definitions, universally accepted meanings that are clear to all associated
with an analysis.
Copyright ©2011 Pearson Education 1-9

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.
Copyright ©2011 Pearson Education 1-10

Population vs. Sample
Population Sample
Measures used to describe the
population are called parameters
Measures used to describe the
sample are called statistics
Copyright ©2011 Pearson Education 1-11

introductiontobusinessstatistics-anitha.pptx

3. Why Learn Statistics Copyright ©2011 Pearson Education 1-3 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 Copyright ©2011 Pearson Education 1-4  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 Copyright ©2011 Pearson Education 1-5

6. These Two Branches Are Used In The Important Activities Copyright ©2011 Pearson Education 1-6  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

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. Copyright ©2011 Pearson Education 1-8

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. OPERATIONAL DEFINITIONS Data values are meaningless unless their variables have operational definitions, universally accepted meanings that are clear to all associated with an analysis. Copyright ©2011 Pearson Education 1-9

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. Copyright ©2011 Pearson Education 1-10

11. Population vs. Sample Population Sample Measures used to describe the population are called parameters Measures used to describe the sample are called statistics Copyright ©2011 Pearson Education 1-11

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