STATISTICS

IN ECONOMICS AND BUSINESS

Nguyen Huyen Trang

Faculty of Statistics - National Economics University
[email protected]
 WHAT ARE WE GOING TO LEARN?

• Introduction to statistics
• The collection of data
• Techniques to analyze data:
• Descriptive analysis
• Inferential analysis
• Modeling interactions between variables (Regression)
• Time series analysis
• Index numbers
 LEARNING OUTCOMES

• Understand the general knowledge and introduction to

statistical basic concepts and research process.
• Understand the general concepts of statistical surveys and
technique in statistical surveys, sampling techniques and
generalizing the results of sample surveys
• Be able to use a variety of sources for the collection of data,
both primary and secondary
• Understand a range of techniques to analyze data effectively
for business purposes
• Be able to use software generated information
 MATERIALS

• Microsoft Excel - Data Analysis Toolpak

• IBM SPSS Package
 ASSESSMENT

• Participation: 10%, including SOME small quizzes

• Group assignment: 30%, including 2 presentations (15%

each)

• Final exam: 60%

Students should achieve an overall mark of 4.5/10

in order to successfully pass the module!

 REFERENCES

1. Anderson, Sweeney, Williams, Camm, Cochran (2017),

Statistics for Business and Economics, 12th Edition, South-
Western.

2. Linda H., John F. (2013), Applied Statistics for Business and

Management using Microsoft Excel, Springer.

3. Verma J.P. (2013), Data Analysis in Management with SPSS

Software, Springer.
 LECTURE 1
CHAPTER 1:
INTRODUCTION TO STATISTICS

WHAT IS STATISTICS?
WHY IS STATISTICS IMPORTANT?
 WHAT IS STATISTICS?

Statistics is
everywhere.
 WHAT IS STATISTICS?

Opinion Statistics
It seems that there In total of 16,000 NEU
are more female students, there are
students than male in 10,000 females (62.5%)
the NEU. and 6,000 males (37.5%).
In general, the older 40
Age 20-29 30-39
the customer is, the +
less money they Average
spend on high-tech Expense 35 28 23
products. ($)
 WHAT IS STATISTICS?

Statistics
help you
make
decisions
 WHAT IS STATISTICS?

GOOD DECISIONS ARE BASED ON FACTS

AND RESEARCH AND ARE OF HUGE VALUE
TO ANY ORGANIZATION

STATISTICS
 WHAT IS STATISTICS?

Statistics:

The science of collecting, organizing,

presenting, analyzing and interpreting data to
assist in making more effective decisions.
 WHAT IS STATISTICS?

Making decisions
Interpret data
Analyze data
Present data

Organize data

Collect data
 WHAT IS STATISTICS?

• Statistics is a way to get information from

data and make decisions under uncertainty

• Statistical analysis of data uses statistical

modelling and probability; our main focus is
on data and techniques for analysing data
 TYPE OF STATISTICS

Descriptive Statistics: • Collect data (Survey,...)

Summarizing Data with • Present data (Tables and graphs,...)
numbers or pictures • Summarize data (Sample mean,...)

Inferential Statistics:
Making conclusions, decisions • Estimation (Estimate the population
mean weight using the sample mean
or predict based on data weight,...)
• Hypothesis testing (Test the claim that
the population mean weight is 65kg)
 TYPE OF STATISTICS

Inferential
Descriptive Statistics
Statistics
 SOME CONCEPTS

• Certainty vs Uncertainty

• Population vs Sample

• Parameters vs Statistics

• Data: Observation – Variable - Value

 CERTAINTY AND UNCERTAINTY

• Number of female students in this class is greater than that

of male students.
• It seems that female student like to study business
administration specification.
• Gold prices have increased steadily over the past year.
• It is probable that gold price would rise in the next year.

 Summarize the certain information

 Infer uncertain information with the highest accuracy
 POPULATION - SAMPLE

Population:
A set of all interested elements
N represents the population size, maybe infinite
A census is obtained by collecting information about every
member of a population
▪ Collect the height of Vietnamese citizens
▪ Verify the quality of all products that are produced by
factory X
 POPULATION - SAMPLE

Sample:
A part of the population that is selected to represent the entire
group
n represents the sample size, finite
• A sample survey is obtained by collecting information of
some members of the population
➢ Collect the height of 1,000 Vietnamese citizens
➢ Verify the quality of a proportion of products that are
produced by factory X
• Sampling: taking a sample from the population
POPULATION - SAMPLE
 POPULATION - SAMPLE

Examples:
▪ A research aims to study about students in your university
➢ Population: All students in your university
➢ Sample: Some students in your university
➢ Individual: Each student in your university
 POPULATION - SAMPLE

➢ A census can give accurate data but collecting

information from the entire population is
sometimes impossible
➢ A census is time-consuming and expensive
➢ A sample allows to investigate more detailed
information
➢ A certain sample size ensures that results from
the sample are as accurate as those of the
population
 PARAMETER - STATISTICS

Population Sample

a b cd
b c
ef gh i jk l m n
gi n
o p q rs t u v w
o r u
x y z
y

Values calculated using Values computed from

population data are called sample data are called
parameters statistics
 PARAMETER - STATISTICS

Values Parameters Statistics

Size N n

Mean µ

Proportion p f

Variance σ2 S2
 DATA

• Data is information that has been translated into a

form that is efficient for movement or processing.

• Raw data is a term used to describe data in its most

basic digital format.

 TYPE OF DATA

Cross-sectional Data Time Series Data Panel Data

Time is fixed! Object is fixed! Multi object over time

Eg: 63 provinces’ Eg: Hanoi’s annual Eg: 63 provinces’

economic economic annual economic
information in 2018 information from information from 2000
2000 to 2018 to 2018
 STRUCTURE OF A DATASET

• Observation: the person or thing on which measurements

are taken
• Variable: A measured characteristic of an observational
unit
• Value
Variables
English Maths
No. Name Sex Age …
Mark Score
1 Anderson M 19 A 8 …
Observations

2 Berky F 20 C 9 …
3 Charles M 20 B 7
… … … … … …. ….
 EXAMPLE

Identify the observations and variables when

collecting 63 provinces’ economic data
 TYPE OF VARIABLES

Qualitative (Categorical)

attribute

Quantitative (Numerical)

number
TYPE OF VARIABLES
Quantitative:

Qualitative:
 QUANTITATIVE VARIABLE

Discrete or Continuous

Result from: Result from:

- counting or labelling observations - measuring (length, weight etc) to
any degree of precision.

• The number of cars sold in the UK in 2017 • The salary of employees

• The age of a person in years • The distance between places
• The size of clothes (80, 90, 100,...) • The productivity of workers
 EXERCISE – GROUP WORK

You need variables for recording the following data:

▪ The height of a person
▪ The gender of a person
▪ The distance travelled from home to university
▪ The available disk capacity on a PC
▪ The country of registration of a car
▪ The annual sales of a particular product
▪ The temperature of a freezer in degrees Celsius
▪ The number of times NEU students visited the library in 2012
▪ The number of miles joggers run per week
▪ The starting salaries of graduates of advanced program
▪ The months in which a firm’s employees choose to take their
vacations
▪ The occupation of graduates of advanced program

a) Classify each variable according to whether it is qualitative or

quantitative
b) Classify each variable according to whether it is continuous or discrete
 EXERCISE – GROUP WORK

Place these variables in the following classification tables.

Discrete Continuous

Qualitative

Quantitative