Finstat - Module 1-1.1

8/4/2019 Finstat - Module 1-1.1

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De La Salle UniversityCollege of Business

Financial Management DepartmentFINSTAT

Data and Statistics

Descriptive Statistics: Tabular and GraphicalMethods


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ELEMENTS, VARIABLES, and OBSERVATIONS

Consider the following statements

In the year 2000, 40% of stock mutual funds

actually had positive returns. But net inflows to

stock funds have increased by $2 billion.

In Hong Kong, Disney had paid only $310

million for a 43% stake in a venture that is

valued at $4 billion


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The numerical facts in the preceding slide are

called statistics In everyday usage, statistics refer to numerical

facts

In a much broader and academic sense, statistics is

the art and science of collecting, analyzing,

presenting, and interpreting data


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Data are the facts and figures that are collected,analyzed, and summarized for presentation and

interpretation

Put all together, they are referred to as a data setfor the study

Elements are the entities on which data arecollected

Avariable is a characteristic of interest for theelements


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Data are obtained by collecting measurements on

each variable for each element in a study. The set

of measurements obtained for a particular element

is called an observation.


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ELEMENTS, VARIABLES, and OBSERVATIONSBRAND 1Q 10 Rev

(in $m)

2Q 10 Rev

(in $m)

3Q 10 Rev

(in $m)

4Q 10 Rev

(in $m)

A $11.4 $15.2 $7.7 $15.0

B $3.4 $5.3 $4.1 $7.7

C $2.3 $1.0 $0.9 $0.8

D $8.4 $8.4 $9.5 $9.3

E $0.4 $0.3 $0.3 $0.4

F $0.3 $0.7 $0.6 $0.6


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SCALES and MEASUREMENTS The scale of measurement determines the amount

of information contained in the data. It also

indicates the data summarization and statistical

analyses that are most appropriate. Data are obtained using one of the following scales

of measurement: nominal, ordinal, interval, and

ratio.


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SCALES and MEASUREMENTSSCALE TYPE of DATA

NOMINAL Labels or names used to identify anattribute of the element; can use numericor non-numeric codes

ORDINALHave the properties of nominal data and

the order or rank of the data is meaningful

INTERVAL Have the properties of ordinal data and theinterval between observations is expressedin terms of a fixed unit of measure

RATIO Have all the properties of interval data andthe ratio of two values is meaningful;includes a zero value which indicates that

nothing exists for the variable at that point


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QUALITATIVE and QUANTITATIVE DATA

Qualitative data are labels or names used toidentify an attribute of each element

Uses either the nominal or ordinal scale of

measurement Can be numeric or non-numeric

Quantitative data are numeric values that indicatehow much or how many

Uses either the interval or ratio scale ofmeasurement


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CROSS-SECTIONAL and TIME SERIES DATA

Cross-sectional data are data collected at the sameor approximately the same point in time

Time-series data are data collected over severaltime periods


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DATA SOURCES Data can be collected from existing sources or

from surveys and experimental studies designed toobtain new data

Sometimes, data needed already exist within a firmor organization and can be readily obtained via the

internet, industry and special interest organizations,

and organizations and that specialize in collectingand maintaining data


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DATA SOURCES In the event that data are not available through

existing sources, such needed data can be obtainedthrough statistical studies Statistical studies can be classified as eitherexperimentalor observational

In experimental studies, a variable of interest is firstidentified, after which one or more other variables

are identified and controlled to determine howthey influence the variable of interest


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DATA SOURCES In observational studies, unlike experimental

studies, no attempt is made to control the variables

of interest

Survey is one of the most common types ofobservational study


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DESCRIPTIVE STATISTICS Data summarized into tabular, graphical, or

numericalways are referred to as descriptivestatistics


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INFERENTIAL STATISTICS Sometimes, data are sought for a large group of elements.

Due to time, cost, and other constraints, data are collected

from only a small portion of the group, which is said to be

a representative of the whole group.

Apopulation is the set of all elements of interest in aparticular study

Asample is a subset of the population Data from a sample can be used to make estimates and

test hypotheses about the characteristics of a population

The process is known as statistical inference


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SUMMARIZING QUALITATIVE DATA

Frequency Distribution a tabular summary ofdata showing the number (frequency) of items in

each of several nonoverlapping classesCoke Classic Pepsi Coke Classic Softdrink Frequency

Diet Coke Coke Classic Diet Coke Coke Classic 12

Pepsi Mug Coke Classic Diet Coke 6

Diet Coke Sprite Diet Coke Pepsi 4

Coke Classic Coke Classic Coke Classic Sprite 3Coke Classic Diet Coke Sprite Mug 2

Mug Coke Classic Pepsi

Diet Coke Coke Classic Coke Classic

Pepsi Sprite Coke Classic

DATA SET


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SUMMARIZING QUALITATIVE DATA Relative frequency of a class is the fraction or proportion of

items belonging to a class

Arelative frequency distribution is a tabular summary ofdata showing the relative distribution for each class

n

FrequencyFrequencyRelative

Softdrink Frequency Relative Frequency

Coke Classic 12 44%Diet Coke 6 22%

Pepsi 4 15%

Sprite 3 11%

Mug 2 7%


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Bar Graphs a graphical device for depictingqualitative data that have been summarized in a

frequency, relative frequency, or percent frequency

distribution

0

2

4

6

8

10

12

14

Coke Classic Diet Coke Pepsi Sprite Mug

Softdrink

Fr

equency

Frequency


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Pie Chart a graphical device used for presentingrelative frequency and percent frequency

distributions for qualitative data

Coke Classi c

45%

Diet Coke

22%

Pepsi

15%

Sprite

11%

Mug

7%

Documents

Finstat - Module 1-1.1