Dr.Pooja Arora

Facuty,Management Deptt…

First Day

Welcome to business school

Introduce myself

Requisites: a calculator, a Register,Asignments

Methodology:

Books for your reference

Gupta & Gupta, An Introduction to Statistical Methods, Vikas Publications

Levin & Rubin, Statistics for Management, Prentice Hall

S P Gupta, Statistical Methods, Sultan Chand

Statistical skills refers to our ability to collect and use data to generate insights that inform fact-based decision-making.

Always try to deal with the real data

Day after day our world is filled with more and more data and the pace of the data growth is accelerating week by week.

What is statistics ??????????????

Why study statistics? OUR homes are becoming smarter with the ever-

growing amount of devices that collect and analysedata. For example, the scales in my bedroom track air quality and temperature levels in addition to my weight, of course, and send this data to my smart phone. My fridge is connected to the internet and will alert me to any faults (e.g. if I forgot to close the door properly). The amount of smart devices will increase significantly over the coming years and STATISTICS will enable us to run smarter, more efficient homes and cities and where your fridge calls out the service engineer when there is a problem.

Why study statistics?

A hospital unit that looks after premature and sick babies is applying real time analytics based on a recording of every breath and every heartbeat of all babies in their unit. It then analyses the data to identify patterns. Based on the analysis the system can now predict infections 24hrs before the baby shows any visible symptoms. This allows early intervention and treatment that is so vital in fragile babies.

Strategic planning

We use a no of complex measures in determining our investment decisions

In good old days- corporate CEO’s relied on their gut to make critical decisions

Today –stakes are too high and competition is more fierce to rely on your gut

Trend is towards data based on decision making in variety of fields

Management,

economics,

enviromental studies,

medicine

Sports…………………

APPLICATIONS Food and drug administration is in final testing of new drug that cures

prostrate cancer in 80%of clinical trials with 2%of undesirable side effects .the director must be 99%certain that there wont be any significant difference between any undesirable side effects in tests and general use of public.

The community bank from its past experience learned that there are for factors in determining the loan 1)no of years in present address

2)no of years in present job 3) whether the applicant owns its house 4)whether an applicant has a saving account using statistics the bank can calculate the chance that Sarah will repay her loan if granted,

To a student taking this course statistics are the grades and final exam in this course.

H.G.Wells: “Statistical thinking will one

day be as necessary for efficient

citizenship as ability to read and write.”

Many organizations are data rich but

information poor

Explain??

Subdivision within statistics

• USED TO SUMMARIZE AND DESCRIBE THE CHARATERISTIC OF SET OF DATA

DESCRIPTIVE STATISTICS

• CONSISTS OF PROCEDURES USED TO MAKE INFERENCES ABOUT POPULATION CHARACTERISTICS ON THE BASIS OF SAMPLE RESULTS

INFERENTIAL STATISTICS

Flow chart of process

Specify the aim of study

Understand how the process works

Assess the current process performance

Identify strategies for improvement

Test the effectiveness of proposed strategy

If Successful

Implement the strategy

Technical Tools

Presentation and description of information

Statistics an overview

Data classification tabulation and presentation

Descriptive statistical methods

Statistical methods

Sampling

Estimation &Confidence intervals

Hypothesis Testing

Sampling

Sampling techniques Sampling distributions

Drawing Conclusions about Population

Fundamentals of probability Probability distributions

Improving the process

Statistical control charts

Statistical decision theory

Linear programming

Applications

Obtaining reliability and

forecasting

Regression& correlation

Time series analysis

Index numbers

Application

7 38

Principles of MeasurementNominal Scale

Numbers

Assignedto Runners

Ordinal Rank Order

of Winners

Interval PerformanceRating on a0 to 10 Scale

Ratio Time to Finish, in

Seconds

Thirdplace

Secondplace

Firstplace

Finish

Finish

8.2 9.1 9.6

15.2 14.1 13.4

Scales of measurement Characteristics of measurement

Determination Permissible statistics

Nominal No order, distance or unique origin

CATEGORICALINFORMATION

PERCENTAGES,MODE,CHI SQUARE TESTING

Ordinal Order but no distance or unique origin

RANKING (GREATER OR

LESSER)PERCENTILES,MODE RANK ORDER CORRELATION

Interval Both order anddistance but not unique origin

EQUALITY OF INTERVALS OR DIFFERENCES

RANGE,MEAN,STANDARD DEVIATION ,PRODUCT MOMENT

Ratio Order ,distance andunique origin

EQUALITY OF RATIOS GEOMETRIC MEAN,COEFFICIENT OF VARIATION

Modern statistical tools and techniques

are important for improving the quality of

managerial decisions

Welcome to world of statistics