Berenson Dkk_Basic Business Statistics12ed_ch01

Chapter 1

Introduction

Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall Chap 1-1

*Basic Business

Statistics12th Edition

Chap 1-1

Copyright ©2012 Pearson Education, Inc.

publishing as Prentice HallChap 1-2

*

In this chapter you learn:

*How businesses use statistics

*The basic vocabulary of statistics

*The types of data used in business

*How to use Microsoft Excel and / or Minitab with this

book

Chap 1-2

* Internet articles / reports

*Magazine articles

*Newspaper articles

* Television & radio reports

* Business memos

* Business research

* Technical journals

* Technical reports



*

Chap 1-3



**To summarize business data

*To draw conclusions from business data

*To make reliable forecasts about business

activities

*To improve business processes

Chap 1-4



*

Statistics

The branch of mathematics that transforms data into useful information for decision makers.

Chap 1-5

Descriptive Statistics

Collecting, summarizing, presenting and analyzing data

Inferential Statistics

Using data collected from a small group to draw conclusions about a larger group



*

*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

* Involves managerial approaches like Six Sigma

Chap 1-6



**Collect data

*e.g., Survey

*Present data

*e.g., Tables and graphs

*Characterize data

*e.g., The sample mean

Chap 1-7



*

*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

Chap 1-8

Drawing conclusions about a large group of individuals based on a smaller group.

*

VARIABLES

Variables are 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.

Chap 1-9Copyright ©2012 Pearson Education, Inc.

publishing as Prentice Hall

Chap 1-9

*

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. Chap 1-10Copyright ©2012 Pearson Education, Inc.

publishing as Prentice Hall

Chap 1-10



Population vs. Sample

Chap 1-11

Population Sample

Measures used to describe the

population are called parameters

Measures used to describe the

sample are called statistics



**To summarize business data (Chapters 2 & 3)

*To draw conclusions from business data (Chapters 4 – 12)

*To make reliable forecasts about business activities (Chapters 13 – 16)

*To improve business processes (Chapter 18)

Chap 1-12



*

Categorical (qualitative) variables have values that

can only be placed into categories, such as “yes” and

“no.”

Numerical (quantitative) variables have values that

represent quantities.

Discrete variables arise from a counting process

Continuous variables arise from a measuring process

Chap 1-13

*



Chap 1-14

Variables

Categorical Numerical

Discrete Continuous

Examples:

Marital Status

Political Party

Eye Color

(Defined categories) Examples:

Number of Children

Defects per hour

(Counted items)

Examples:

Weight

Voltage

(Measured characteristics)



*

A nominal scale classifies data into distinct categories in which no

ranking is implied.

Chap 1-15

Categorical Variables Categories

Personal Computer

Ownership

Type of Stocks Owned

Internet Provider

Yes / No

Microsoft Network / AOL/ Other

Growth / Value / Other



*

An ordinal scale classifies data into distinct

categories in which ranking is implied

Chap 1-16

Categorical Variable Ordered Categories

Student class designationFreshman, Sophomore, Junior,

Senior

Product satisfaction Satisfied, Neutral, Unsatisfied

Faculty rankProfessor, Associate Professor,

Assistant Professor, Instructor

Standard & Poor’s bond ratingsAAA, AA, A, BBB, BB, B, CCC, CC,

C, DDD, DD, D

Student Grades A, B, C, D, F



*

An interval scale is an ordered scale in which the difference between measurements is a meaningful quantity but the measurements do not have a true zero point.

A ratio scale is an ordered scale in which the difference between the measurements is a meaningful quantity and the measurements have a true zero point.

Chap 1-17

*



Chap 1-18



*

Introduced the basic vocabulary and definitions of statistics, and

the role of statistics in turning data into information to facilitate

decision making

Examined the use of statistics to:

Summarize data

Draw conclusions from data

Make reliable forecasts

Improve business processes

Examined descriptive vs. inferential statistics

Reviewed data types and measurement level

Chap 1-19

In this chapter, we have

Documents

Berenson Dkk_Basic Business Statistics12ed_ch01