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Lecture 01

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STATISTICS FOR BUSINESS

Lecturer: Nguyen Thi Thu Van


[email protected]

April 4, 2024

[1] Anderson D. R. et al.: Statistics for Business and Economics,


13th edition, South-Western Cengage Learning (2018)
[2] Black, K. et al.: Australasian Business Statistics, 4th edition,
John Wiley and Sons Australia, Milton (2017)
[3] Doane, P. D. et al.: Applied Statistics in Business and
Economics, 5th edition, McGraw Hill (2016)
Tentative Plan
Session Topics
1 Introduction and Data collection
2 Describing data visually
3 Descriptive statistics
4 Probability
5 Discrete probability distributions
6 Continuous probability distributions
7 Sampling distributions and estimation
8 One-sample hypothesis tests
9 Two-sample hypothesis tests
10 Analysis of variance
11 Regression
12 Group Presentation
Assessment Summary
1. Prior-to-class Quizzes due in class: 15%
2. Wrap-up Quizzes due online on Sundays: 15%
3. In class group activities: 30%
a. Class Attendance and Participation: 10%
 Each student is given 10pts in advance.
 Each absence will be deduced 1.5pts.
 In the case absence is unexpected, assign
relevant evidence to the lecturer in order to be
exempted.
b. Group Project: 20%
 Each group chooses a topic of interest.
4. Final Exam: 40%
What you need to be successful in the Statistics course?
 Read the materials before coming to class.

 Go to class on time.

 Be prepared and ready for P-quizzes being opened 5


mins after the class starts.

 Don’t miss W-quizzes on Sundays.

 Ask questions.

 Work out problems in the textbook which are similar to


those that have been solved in class.

 Stick on the project goals.


LECTURE 1

Introduction to Statistics
We often hear questions like
 What’s the average weight of 6-year-old boys
and girls?

 What is the average salary in Vietnam?

 How skyrocketing gas prices affect the real


estate market?

 How far could house prices fall?

 ...
To answer such questions, we need Statistics.
“Statistics is a way to get information from data.”
Gerald Keller

Data Information
Average = 48.67
Min = 43.33
Max = 53.33
Range = 10
…
What is Statistics?
Plural or Singular?
• Statistics is the science of learning from data by
collecting, organizing, analyzing, interpreting,
presenting data and drawing conclusions.

• A statistic is a single measure, reported as a


number, used to summarize a sample data set;
for example, the average weight of 6 year-old
boys in certain primary schools in HCMC.
Two Branches of Statistics
Statistics
The branch of mathematics that transforms data into
useful information for decision makers.

Descriptive Statistics Inferential Statistics

Collecting, summarizing, Using data collected from a


presenting and analyzing small group to draw
data conclusions about a larger
group
Descriptive Statistics

 Collect data
 e.g., Survey

 Present data
 e.g., Tables and graphs

 Characterize data
 e.g., Sample mean =  X i

n
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 20
kgs

Drawing conclusions about a population based on sample results.


What topics to Study in the Course?
Why study Statistics?
 Many career opportunities

 Better understanding of data analysis reports

 Improving communication and problem solving

 Developing critical and analytical thinking

 Enhancing technical literacy

 …

and many more.


What are Applications of Statistics in Business?

 Auditing
 Statistical sampling procedures

are used when conducting audits.

 Economics
 Statistical information is used in

making forecasts about the future

of the economy.
What are Applications of Statistics in Business?
 Actuary

 Insurance companies forecast the


probability of an event occurring to
determine the funds needed to pay claims.

 Marketing

 A survey of customer preference on a


product or service.

 Production

 Statistical quality control charts are used to


monitor the output of a production process.
What are Applications of Statistics in Business?
 Finance
 Statistical information is used to guide an
investment.

 Operations Management
 Manage inventory by
forecasting consumer demand.
How can Statistics support Critical Thinking?
 Statistics is an essential part
of critical thinking because it
allows us to test an idea
against empirical evidence.

 Empirical data represent data collected through


observation and experiments.

 Statistical tools are used to compare prior ideas with


empirical data, but pitfalls can occur. Let see what
pitfalls could be in the next slides.
Caveat: Common Logical Pitfalls
 Making Conclusions about a Large Population from a
Small Sample
 Smoking is not dangerous. My uncle smoked all his life and lived
to 100.

 Making Conclusions from Nonrandom Samples


 Rock stars die young. Look at John Lennon, Michael Jackson,
Whitney Houston

 Conclusions From Rare Events


 Tom’s SUV rolled over. SUV is dangerous

 Using Poor Survey Methods


 How many of you remember integral from your math class
Caveat: Common Statistical Pitfalls
 Assuming a Causal Link Based on Observations
 Crime rates were higher during the full moon. Full moon
caused higher crime rates.

 Generalization to Individuals from Observations about


Groups
 Men are taller than women, so Bill is taller than Mary.

 Unconscious Bias
 For many years, it was assumed that heart attacks were likely
to occur in men than women.

 Significance versus Importance


 Men stay homes less than women.
-- The End of Topic --
Thank You!

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