Ch1 Larson/Farber

1.1 An Overview of Statistics

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Objective

The Executives will Learn and Understand The Definition of Statistics.

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Consider the following

“The number of Americans with diabetes will nearly double in the next 25 years.”

n “The NRF expects holiday sales to decline 1% versus a 3.4% drop in holiday sales the previous year.”

n EIA projects total U.S. natural gas consumption will decline by 2.6 percent in 2009 and increases by 0.5 percent in 2010”

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What is Data

Data consists of information coming from observations, counts, measurements or responses.

Sometimes data is represented graphically.

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Ch1 Larson/Farber

Where does Statistics come from

The use of Statistics dates back to census taking to ancient Babylonia, Egypt, and later the Roman Empire, when data were collected about matters concerning the state, such as births and deaths. In fact, the word statistics is derived from the Latin word status, meaning “state”.

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Ch1 Larson/Farber

What is Statistics?

o http://www.learner.org/courses/againstallodds/unitpages/unit01.html

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Statistics is the science of collecting, organizing,

analyzing, and interpreting data in order to make

decisions.

What Is Statistics?

Ch1 Larson/Farber

Objective

The Executives will be able to distinguish between a population and a sample.

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DATA SETS

There are two types of data sets:

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Important Terms

Population

The collection of all outcomes, responses, measurements, or counts that are of interest.

SampleA subset, or part, of the population.

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Ch1 Larson/Farber

Example 1 (page 3)

Identifying Data Sets: In a recent survey, 1500 adults in the

United States were asked if they thught there was solid evidence of global warming. Eight hundred fifty-five of the adults said yes. Identify the population and the sample. Describe the sample data set.

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Independent Work

Try it yourself 1 for 7 min.

Partner work for 5 min.

Class discussion.

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Class Discussion

Classifying a Data Set. Page 6

Exit Ticket Independent work page 7, questions 26-34

even.

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Objective

The Executives will be able to distinguish between a parameter and a statistic.

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Important Terms

ParameterA number that describes a population characteristic.

StatisticA number that describes a sample characteristic.

Average gross income of all people in the United States in 2002.

2002 gross income of people from a sample of three states.

Ch1 Larson/Farber

EXAMPLE 2

Distinguishing Between a Parameter and a Statistic

1. A recent survey of 200 college career centers reported that the average starting salary for petroleum engineering majors is $83,121.

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Things to Ponder

Why can a sample statistic differ from sample to sample, and a population parameter is constant for a population?

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2. The 2182 students who accepted admission offers to Northwestern University in 2009 have an average SAT score of 1442.

3. In a random check of a sample of retail stores, the Food and Drug Administration found that 34% of the stores were not storing fish at the prper temperature.

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Try it yourself 2 (pg 4) for 7 min.

Partner work for 5 min.

Class discussion.

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Class review Page 8 35-39

Exit Ticket Page 8 40-42

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Objective

The Executives will learn how to distinguish between descriptive statistics and inferential statistics.

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Inferential Statistics

Two Branches of Statistics

Descriptive Statistics Involves organizing, summarizing, and displaying data.

Involves using sample data to draw conclusions about a population. A basic tool in the study of inferential statistics is probability.

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Example 3 (page 5)

1. A large sample of men, aged 48, was studied for 18 years. For unmarried men approximately 70% were alive at age 65. For married men 90% were alive at age 65.

2. In a sample of Wall Street analysts, the percentage who incorrectly forecasted high-tech earnings in a recent year wass 44%.

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Try it yourself 3 (pg 5) for 7 min.

Partner work for 5 min.

Class discussion.

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Review

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Class practice

Page 8 43-44

Page 29

Exercise 3/9, 4/10

Exit Ticket

Page 8

Question 4630