Busin

ess S

tatis

tics: A

Firs

t Cours

e, 5

e ©

2009 P

rentic

e-H

all, In

c.

Chap 1

-١

Ch

ap

ter 1

Intro

du

ctio

n a

nd

Da

ta C

olle

ctio

n

Busin

ess S

tatis

tics:

A F

irst C

ou

rse

Fifth

Editio

n

Busin

ess S

tatis

tics: A

Firs

t Cours

e, 5

e ©

2009 P

rentic

e-H

all, In

c.

Chap 1

-٢

Lea

rnin

g O

bje

ctiv

es

In th

is c

ha

pte

r yo

u le

arn

:

�H

ow

Sta

tistic

s is

use

d in

bu

sin

ess

�T

he

so

urc

es o

f da

ta u

se

d in

bu

sin

ess

�T

he

typ

es o

f da

ta u

se

d in

bu

sin

ess

�T

he

ba

sic

s o

f Mic

roso

ft Exce

l

�T

he

ba

sic

s o

f Min

itab

Busin

ess S

tatis

tics: A

Firs

t Cours

e, 5

e ©

2009 P

rentic

e-H

all, In

c.

Chap 1

-٣

Why L

ea

rn S

tatis

tics?

So

yo

u a

re a

ble

to m

ake

be

tter s

en

se

of th

e

ub

iqu

itou

s u

se

of n

um

be

rs:

�B

usin

ess m

em

os

�B

usin

ess re

se

arc

h

�T

ech

nic

al re

po

rts

�T

ech

nic

al jo

urn

als

�N

ew

sp

ap

er a

rticle

s

�M

ag

azin

e a

rticle

s

Busin

ess S

tatis

tics: A

Firs

t Cours

e, 5

e ©

2009 P

rentic

e-H

all, In

c.

Chap 1

-٤

What is

sta

tistic

s?

�A

bra

nch

of m

ath

em

atic

s ta

kin

g a

nd

tran

sfo

rmin

g n

um

be

rs in

to u

se

ful in

form

atio

n fo

r d

ecis

ion

ma

ke

rs

�M

eth

od

s fo

r pro

ce

ssin

g &

an

aly

zin

g n

um

be

rs

�M

eth

od

s fo

r he

lpin

g re

du

ce

the

un

ce

rtain

ty

inh

ere

nt in

de

cis

ion

ma

kin

g

Busin

ess S

tatis

tics: A

Firs

t Cours

e, 5

e ©

2009 P

rentic

e-H

all, In

c.

Chap 1

-٥

Why S

tudy S

tatis

tics?

Decisio

n M

akers U

se Statistics T

o:

�P

resent an

d d

escribe b

usin

ess data an

d in

form

ation p

roperly

�D

raw co

nclu

sions ab

out larg

e gro

ups o

f indiv

iduals o

r items,

usin

g in

form

ation co

llected fro

m su

bsets o

f the in

div

iduals o

r

items.

�M

ake reliab

le forecasts ab

out a b

usin

ess activity

�Im

pro

ve b

usin

ess pro

cesses

Busin

ess S

tatis

tics: A

Firs

t Cours

e, 5

e ©

2009 P

rentic

e-H

all, In

c.

Chap 1

-٦

Types o

f Sta

tistic

s

�S

tatis

tics

�

The b

ranch

of m

athem

atics that tran

sform

s data in

to

usefu

l info

rmatio

n fo

r decisio

n m

akers.

De

scrip

tive S

tatis

tics

Collectin

g, su

mm

arizing, an

d

describ

ing d

ata

Infe

ren

tial S

tatis

tics

Draw

ing co

nclu

sions an

d/o

r m

akin

g d

ecisions co

ncern

ing a

populatio

n b

ased o

nly

on sam

ple

data

Busin

ess S

tatis

tics: A

Firs

t Cours

e, 5

e ©

2009 P

rentic

e-H

all, In

c.

Chap 1

-٧

Descrip

tive S

tatis

tics

�C

olle

ct d

ata

�e

.g., S

urv

ey

�P

resent d

ata

�e

.g., T

able

s a

nd

gra

ph

s

�C

ha

racte

rize

data

�e

.g., S

am

ple

mea

n =

iX

n

∑

Busin

ess S

tatis

tics: A

Firs

t Cours

e, 5

e ©

2009 P

rentic

e-H

all, In

c.

Chap 1

-٨

Infe

rentia

l Sta

tistic

s

�E

stim

atio

n

�e.g

., Estim

ate

the p

opula

tion

mean w

eig

ht u

sin

g th

e s

am

ple

mean w

eig

ht

�H

yp

oth

esis

testin

g

�e.g

., Test th

e c

laim

that th

e

popula

tion m

ean w

eig

ht is

120

pounds

Dra

win

g c

on

clu

sio

ns a

bo

ut a

larg

e g

rou

p o

f in

div

idu

als

ba

sed

on

a s

ub

set o

f the

larg

e g

rou

p.

Busin

ess S

tatis

tics: A

Firs

t Cours

e, 5

e ©

2009 P

rentic

e-H

all, In

c.

Chap 1

-٩

Basic

Vocabula

ry o

f Sta

tistic

s

VA

RIA

BL

EA

varia

ble is a ch

aracteristic of an

item o

r indiv

idual.

DA

TA

Data

are the d

ifferent v

alues asso

ciated w

ith a v

ariable.

OP

ER

AT

ION

AL

DE

FIN

ITIO

NS

Data v

alues are m

eanin

gless u

nless th

eir variab

les hav

e op

eratio

nal

defin

ition

s, univ

ersally accep

ted m

eanin

gs th

at are clear to all asso

ciated

with

an an

alysis.

Busin

ess S

tatis

tics: A

Firs

t Cours

e, 5

e ©

2009 P

rentic

e-H

all, In

c.

Chap 1

-١٠

Basic

Vocabula

ry o

f Sta

tistic

s

PO

PU

LA

TIO

NA

pop

ula

tion

consists o

f all the item

s or in

div

iduals ab

out w

hich

you w

ant to

draw

a conclu

sion.

SA

MP

LE

A sa

mp

le is the p

ortio

n o

f a populatio

n selected

for an

alysis.

PA

RA

ME

TE

RA

para

meter is a n

um

erical measu

re that d

escribes a ch

aracteristic

of a p

opulatio

n.

ST

AT

IST

ICA

statistic is a n

um

erical measu

re that d

escribes a ch

aracteristic of

a sample.

Busin

ess S

tatis

tics: A

Firs

t Cours

e, 5

e ©

2009 P

rentic

e-H

all, In

c.

Chap 1

-١١

Popula

tion v

s. S

am

ple

Po

pu

latio

nS

am

ple

Measu

res used

to d

escribe th

e

populatio

n are called

para

meters

Measu

res com

puted

from

sample d

ata are called sta

tistics

Busin

ess S

tatis

tics: A

Firs

t Cours

e, 5

e ©

2009 P

rentic

e-H

all, In

c.

Chap 1

-١٢

Why C

olle

ct D

ata

?

�A

mark

eting

research an

alyst n

eeds to

assess the

effectiven

ess of a n

ew telev

ision ad

vertisem

ent.

�A

pharm

aceutical m

anu

facturer n

eeds to

determ

ine

wheth

er a new

dru

g is m

ore effectiv

e than

those cu

rrently

in

use.

�A

n o

peratio

ns m

anag

er wan

ts to m

onito

r a man

ufactu

ring

pro

cess to fin

d o

ut w

heth

er the q

uality

of th

e pro

duct

bein

g m

anu

factured

is con

form

ing to

com

pan

y stan

dard

s.

�A

n au

dito

r wan

ts to rev

iew th

e finan

cial transactio

ns o

f a co

mpan

y in

ord

er to d

etermin

e wheth

er the co

mp

any is in

co

mplian

ce with

gen

erally accep

ted acco

untin

g

prin

ciples.

Busin

ess S

tatis

tics: A

Firs

t Cours

e, 5

e ©

2009 P

rentic

e-H

all, In

c.

Chap 1

-١٣

Sourc

es o

f Data

�P

rimary

So

urces: T

he d

ata collecto

r is the o

ne u

sing th

e data

for an

alysis

�D

ata from

a political su

rvey

�D

ata collected

from

an ex

perim

ent

�O

bserv

ed d

ata

�S

econdary

Sou

rces: The p

erson p

erform

ing d

ata analy

sis is

not th

e data co

llector

�A

naly

zing cen

sus d

ata

�E

xam

inin

g d

ata from

prin

t journ

als or d

ata publish

ed o

n th

e intern

et.

Busin

ess S

tatis

tics: A

Firs

t Cours

e, 5

e ©

2009 P

rentic

e-H

all, In

c.

Chap 1

-١٤

Sourc

es o

f data

fall in

to fo

ur

cate

gorie

s

�D

ata

dis

tribu

ted

by a

n o

rga

niz

atio

n o

r an

ind

ivid

ua

l

�A

de

sig

ne

d e

xp

erim

en

t

�A

su

rve

y

�A

n o

bse

rva

tion

al s

tud

y

Busin

ess S

tatis

tics: A

Firs

t Cours

e, 5

e ©

2009 P

rentic

e-H

all, In

c.

Chap 1

-١٥

Types o

f Varia

ble

s

�C

ateg

orica

l(q

ualitativ

e) variab

les hav

e valu

es that

can o

nly

be p

laced in

to categ

ories, su

ch as “y

es”an

d

“no

.”

�N

um

erical

(qu

antitativ

e) variab

les hav

e valu

es that

represen

t qu

antities.

Busin

ess S

tatis

tics: A

Firs

t Cours

e, 5

e ©

2009 P

rentic

e-H

all, In

c.

Chap 1

-١٦

Types o

f Da

ta

Da

ta

Ca

teg

oric

al

Nu

meric

al

Dis

cre

teC

on

tinu

ou

s

Exa

mp

les:

�M

arita

l Sta

tus

�P

olitic

al P

arty

�E

ye

Co

lor

(Defin

ed

ca

teg

orie

s)

Exa

mp

les:

�N

um

be

r of C

hild

ren

�D

efe

cts

pe

r ho

ur

(Co

un

ted

item

s)

Exa

mp

les:

�W

eig

ht

�V

olta

ge

(Measu

red

ch

ara

cte

ristic

s)

Busin

ess S

tatis

tics: A

Firs

t Cours

e, 5

e ©

2009 P

rentic

e-H

all, In

c.

Chap 1

-١٧

Pers

onal C

om

pute

r Pro

gra

ms

Used F

or S

tatis

tics

�M

inita

b

�A

sta

tistic

al p

ackage to

perfo

rm s

tatis

tical a

naly

sis

�D

esig

ned to

perfo

rm a

naly

sis

as a

ccura

tely

as p

ossib

le

�M

icro

soft E

xcel

�A

multi-fu

nctio

nal d

ata

analy

sis

tool

�C

an p

erfo

rm m

any fu

nctio

ns b

ut n

one a

s w

ell a

s p

rogra

ms th

at

are

dedic

ate

d to

a s

ingle

functio

n.

�B

oth

Min

itab a

nd E

xcel u

se w

ork

sh

eets

to s

tore

data

Busin

ess S

tatis

tics: A

Firs

t Cours

e, 5

e ©

2009 P

rentic

e-H

all, In

c.

Chap 1

-١٨

Min

itab &

Mic

rosoft E

xcel T

erm

s

�W

hen

you u

se Min

itab o

r Micro

soft E

xcel, y

ou p

lace the d

ata you

hav

e collected

in w

ork

sheets.

�T

he in

tersections o

f the co

lum

ns an

d ro

ws o

f work

sheets fo

rm

boxes called

cells.

�If y

ou w

ant to

refer to a g

roup o

f cells that fo

rms a co

ntig

uous

rectangular area, y

ou can

use a cell ra

nge.

�W

ork

sheets ex

ist insid

e a work

boo

k in

Excel a

nd

insid

e a

Pro

ject in M

inita

b.

�B

oth

work

sheets an

d p

rojects can

contain

both

data, su

mm

aries, an

d ch

arts.

Busin

ess S

tatis

tics: A

Firs

t Cours

e, 5

e ©

2009 P

rentic

e-H

all, In

c.

Chap 1

-١٩

You a

re u

sin

g p

rogra

ms p

roperly

if you c

an

�U

nd

ers

tan

d h

ow

to o

pera

te th

e p

rogra

m

�U

nd

ers

tan

d th

e u

nd

erly

ing s

tatis

tica

l co

nce

pts

�U

nd

ers

tan

d h

ow

to o

rga

niz

e a

nd p

rese

nt in

form

atio

n

�K

no

w h

ow

to re

vie

w re

su

lts fo

r erro

rs

�M

ake s

ecure

an

d c

learly

na

me

d b

acku

ps o

f yo

ur w

ork

Busin

ess S

tatis

tics: A

Firs

t Cours

e, 5

e ©

2009 P

rentic

e-H

all, In

c.

Chap 1

-٢٠

Chapte

r Su

mm

ary

�R

eview

ed w

hy a m

anag

er need

s to k

now

statistics

�In

troduced

key

defin

itions:

�P

op

ulatio

n v

s. Sam

ple

�P

rimary

vs. S

econ

dary

data ty

pes

�C

atego

rical vs. N

um

erical data

�E

xam

ined

descrip

tive v

s. inferen

tial statistics

�R

eview

ed d

ata types

�D

iscussed

Min

itab an

d M

icroso

ft Excel term

s

In th

is chap

ter, we h

ave