Download Basic Business Statistics, 10/e

Business Statistics
Chapter 1
Introduction and Data Collection
Chap 1-1
Learning Objectives
In this chapter you learn:

How Statistics is used in business

The sources of data used in business

The types of data used in business
Chap 1-2
Basic Concepts of Statistics
Statistics is concerned with:

Processing and analyzing data

Collecting, presenting, and transforming
data to assist decision makers
Chap 1-3
Key Definitions




A population (universe) is the collection of all
members of a group
A sample is a portion of the population
selected for analysis
A parameter is a numerical measure that
describes a characteristic of a population
A statistic is a numerical measure that
describes a characteristic of a sample
Chap 1-4
Population vs. Sample
Population
a b
Sample
cd
b
ef gh i jk l m n
o p q rs t u v w
x y
z
Measures used to describe a
population are called
parameters
c
gi
o
n
r
u
y
Measures computed from
sample data are called
statistics
Chap 1-5
Two Branches of Statistics

Descriptive statistics


Collecting, summarizing, and presenting data
Inferential statistics

Drawing conclusions about a population based
only on sample data
Chap 1-6
Descriptive Statistics

Collect data


Present data


e.g., Survey
e.g., Tables and graphs
Characterize data

X

e.g., Sample mean =
i
n
Chap 1-7
Inferential Statistics

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
Drawing conclusions about a population based on
sample results.
Chap 1-8
Collecting Data
Primary
Secondary
Data Collection
Data Compilation
Print or Electronic
Observation
Survey
Experimentation
Chap 1-9
Types of Data
Data
Categorical
Numerical
Examples:



Marital Status
Political Party
Eye Color
(Defined categories)
Discrete
Examples:


Number of Children
Defects per hour
(Counted items)
Continuous
Examples:


Weight
Voltage
(Measured characteristics)
Chap 1-10
Levels of Measurement
and Measurement Scales
Differences between
measurements, true
zero exists
Ratio Data
Differences between
measurements but no
true zero
Interval Data
Highest Level
(Strongest forms of
measurement)
Higher Levels
Ordered Categories
(rankings, order, or
scaling)
Categories (no
ordering or direction)
Ordinal Data
Nominal Data
Lowest Level
(Weakest form of
measurement)
Levels of Measurement
and Measurement Scales
EXAMPLES:
Differences between
measurements, true
zero exists
Height, Age, Weekly
Food Spending
Interval Data
Differences between
measurements but no
true zero
Temperature in
Fahrenheit, Standardized
exam score
Ordinal Data
Ordered Categories
(rankings, order, or scaling)
Nominal Data
Categories (no ordering
or direction)
Ratio Data
Service quality rating,
Standard & Poor’s bond
rating, Student letter
grades
Marital status, Type of car
owned
Chapter Summary

Reviewed basic concepts of statistics:

Population vs. Sample

Parameter vs. Statistic

Primary vs. Secondary data sources

Defined descriptive vs. inferential statistics

Reviewed types of data and measurement scales

Categorical vs. Numerical data

Discrete vs. Continuous data

Nominal and Ordinal scales

Interval and Ratio scales
Chap 1-13