Chapter 1 Data set

Data and Statistics

Data and Data Sets
1.1 Applications in Business and Economics
Elements, Variables, and Observations

1.2 Data
Scales of Measurement
1.3 Data Sources Qualitative and Quantitative Data

1.4 Descriptive Statistics Cross-Sectional and Time Series Data

1.5 Statistical Inference

1.6 Computers and Statistical Analysis

Data and Data Sets Elements, Variables, and Observations

The elements are the entities on which data are collected.
Data are the facts and figures collected,
summarized, analyzed, and interpreted. A variable is a characteristic of interest for the elements.

The set of measurements collected for a particular

element is called an observation.
The data collected in a particular study are
referred to as the data set.
The total number of data values in a data set is the
number of elements multiplied by the number of
variables.
 Data, Data Sets,
Data, Data Sets, Elements, Variables, and Observations
Elements, Variables, and Observations

Company

8 : 8
5
8 , 5 .

: ,
5 : AMEX, DWL, 36.4, 8.4, 36.7.

Scales of Measurement
1. (nominal scale)
When the data for a variable consist of labels or names
used to identify an attribute of the element.

1. nominal scale
(nominal scale)

2. ordinal scale

3. interval scale

4. ratio scale
Scales of Measurement: Nominal scale 2. (ordinal scale)

Example: if the data exhibit the properties of nominal

Students of a university are classified by the data and the order or rank of the data is
school in which they are enrolled using a meaningful.
nonnumeric label such as Business,
Humanities, Education, and so on.
Alternatively, a numeric code could be used for
the school variable;
e.g. 1 = Business, 2 =Humanities, 3 =Education,
.

Scales of Measurement:
Ordinal scale
Example:

Students of a university are classified by their

class standing using a nonnumeric label such
as Freshman, Sophomore, Junior, or Senior.

Alternatively, a numeric code could be used for

the class standing variable
(e.g. 1= Freshman, 2 = Sophomore, and so on).
3. (interval scale) Scales of Measurement : Interval Scale
the data show the properties of ordinal data Ex: 3 students with SAT scores of 1120, 1050, 970
and the interval between values is expressed in can be ranked or ordered in terms of best
terms of a fixed unit of measure.
performance to poorest performance.
Interval data are always numeric.
And the differences between the scores are
meaningful.
(interval For instance, student 1 scored 1120 1050 =70
scale) points more than student 2, while student 2 scored
1050 970 = 80 points more than student 3.

Example: SAT scores, temperature.

:

Scales of Measurement: Ratio scale

4. (ratio scale)
the data have all the properties of interval data
and the ratio of two values is meaningful.
Ratio scale requires that a zero value be shows 72 credit hours earned. Kevin has twice
included to indicate that nothing exists for the as many credit hours earned as Melissa.
variable at the zero point.
. Ex: distance, height, weight, and time use the
ratio scale of measurement :
/
( )

:
 Qualitative and Quantitative Data 1. Categorical or Qualitative Data
:
Labels or names used to identify an attribute of each
Data can be further classified as either qualitative
element_Use either the nominal or ordinal scale of
or quantitative.
measurement.
Qualitative data are often referred to as categorical
The statistical analysis appropriate for a
data.
particular variable depends upon whether the
variable is qualitative or quantitative. Qualitative data Can be either numeric or
nonnumeric.
If the variable is qualitative, the statistical
1.
analysis is rather limited. There are more
alternatives for statistical analysis when the data
are quantitative.

Quantitative Data Data type/Scales of Measurement

:
Quantitative data indicate how many or how much:
discrete, if measuring how many
continuous, if measuring how much
Quantitative data are always numeric.
Ordinary arithmetic operations are meaningful for
quantitative data.
2. .
,
 Cross-Sectional Data
:

Cross-sectional data are collected at the same or

approximately the same point in time.
( )

Example: data detailing the number of building

permits issued in June 2003 in each of the counties
of Ohio

Time Series Data (time series data)

:

Time series data are collected over several time

periods.

Example: data detailing the number of building

permits issued in Lucas County, Ohio in each of
the last 36 months

1.1 2002 3 4

$1.4 $1.47
 Data Sources
1.3 Data Sources
Existing Sources
1. Existing Sources
Within a firm almost any department
Business database services Dow Jones & Co.
Government agencies - U.S. Department of Labor
Industry associations Travel Industry Association
2. Statistical Studies of America
Special-interest organizations Graduate Management
Admission Council
Internet more and more firms

Data Sources: Statistical Studies

In experimental studies the variables of interest
are first identified. Then one or more factors are (Investigation))
controlled so that data can be obtained about how
the factors influence the variables.
(Survey)

(Sampling)
In observational (nonexperimental) studies no
attempt is made to control or influence the (Experiment)
variables of interest. a survey is a
good example
(Observation)
 Data Acquisition Considerations 1.4 Descriptive Statistics

Descriptive statistics are the tabular, graphical,

Time Requirement and numerical methods used to summarize data.
Searching for information can be time consuming

Information may no longer be useful by the time it is available.

Cost of Acquisition
Organizations often charge for information even
when it is not their primary business activity.
Data Errors

Using any data that happens to be available or that were acquired

with little care can lead to poor and misleading information.
 Numerical Descriptive Statistics

Ex:
The most common numerical descriptive
The manager likes to have a better understanding of statistic is the average (or mean). :
the cost of parts used in the engine tune-ups
performed in the shop.
50 tune-ups studied, is $79 (found by summing
She examines 50 customer invoices for tune-ups. the 50 cost values and then dividing by 50).
The costs of parts are listed: ( )

Graphical Summary: Histogram

Frequency and Percent Frequency table Tune-up Parts Cost

Frequency
50-59 2 4
60-69 13 26 4%=(2/50)x 100%
70-79 16 32
80-89 7 14
90-99 7 14 Parts
Cost ($)
100-109 5 10
50 100
 1.5 Statistical Inference
Population

-the set of all elements of interest in a particular study.

Statistical inference
Sample process of using data obtained result for a
- a subset of the population. population from a sample
Census -collecting data for a population

Sample survey .
-collecting data for a sample

https://www.youtube.com/watch?v=8X2xfwBP4uo

Process of Statistical Inference 1.6 Computers and Statistical Analysis

Statistical analysis often involves working with large
Population A sample of 50 amounts of data.
consists of all engine tune-ups
tune-ups. Computer software is typically used to conduct the
analysis.
Statistical software packages such as Microsoft
Excel and Minitab are capable of data management,
analysis, and presentation.
Instructions for using Excel and Minitab are
provided in chapter appendices.

Sample data provide a sample average parts cost of $79 per tune-up
The sample average is used to estimate the population average.
https://www.youtube.com/watch?v=8X2xfwBP4uo
 1.7 1.7

(data mining)
(Amazon) (Barnes & Noble)

(mine the
data)

$20

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