Statistics for Management and
Research
Chapter 1
Introduction
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Learning Objectives
In this chapter you learn:
What is statistics
The basic vocabulary of statistics
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In Business and Research,
Statistics Has Many Important Uses
To summarize data
To draw conclusions from data
To make reliable forecasts
To improve decision processes
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Two Different Branches
Of Statistics
Statistics
The branch of mathematics that transforms data into
useful information for decision makers and researchers.
Descriptive Statistics Inferential Statistics
Collecting, summarizing, Using data collected from a
presenting and analyzing data small group to draw conclusions
about a larger group
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Descriptive Statistics
Collect data
e.g., Survey
Present data
e.g., Tables and graphs
Characterize data
e.g., The sample mean
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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 large group of
individuals based on a smaller group.
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Basic Vocabulary of Statistics
VARIABLES
Variables are a characteristics of an item or individual and are what you
analyze when you use a statistical method.
DATA
Data are the different values associated with a variable.
OPERATIONAL DEFINITIONS
Data values are meaningless unless their variables have operational
definitions, universally accepted meanings that are clear to all associated
with an analysis.
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Basic Vocabulary of Statistics
POPULATION
A population consists of all the items or individuals about which
you want to draw a conclusion.
SAMPLE
A sample is the portion of a population selected for analysis. The
sample is the “small group”
PARAMETER
A parameter is a numerical measure that describes a characteristic
of a population.
STATISTIC
A statistic is a numerical measure that describes a characteristic of
a sample.
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Population vs. Sample
Population Sample
Measures used to describe the Measures used to describe the
population are called parameters sample are called statistics
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This course Is Organized To Show
Two Uses Of Statistics
To summarize data (Chapters 2 & 3)
To draw conclusions from data (Chapters 4 –
10)
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