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10 views2 pages

Lesson 2

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hfcondiman02849
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LESSON 2: Descriptive Statistics - Time series data are collected over several time

periods. Graphs of time series data are frequently


2.1 OVERVIEW OF USING DATA: DEFINITIONS AND found in business and economic publications. Such
GOALS graphs help analysts understand what happened in
the past, identify trends over time, and project future
 Data are the facts and figures collected, analyzed, and levels for the time series.
summarized for presentation and interpretation
Sources of Data
 A characteristic or a quantity of interest that can take on
different values is known as a variable; the variables are - Statistical studies can be classified as either experimental or
Symbol, Industry, Share Price, and Volume. observational.
- In an experimental study, a variable of interest is first
 An observation is a set of values corresponding to a set of identified. Then one or more other variables are identified
variables; each row in Table 2.1 corresponds to an and controlled or manipulated to obtain data about how
observation these variables influence the variable of interest.
- Statistical analysis of these experimental data can help determine
how the new drug affects blood pressure.
 Variation is the difference in a variable measured over
observations (time, customers, items, etc.).
- Nonexperimental, or observational, studies make no
The role of descriptive analytics; attempt to control the variables of interest. A survey is
perhaps the most common type of observational study.
- is to collect and analyze data to gain a better understanding
of variation and its impact on the business setting. - For instance, in a personal interview survey, research questions are
first identified. Then a questionnaire is designed and administered to
 The values of some variables are under direct control of the a sample of individuals.
decision maker (these are often called decision variables).
2.3 MODIFYING DATA IN EXCEL
 A quantity whose values are not known with certainty is Sorting and Filtering Data in Excel Conditional Formatting
called a random variable, or uncertain variable. of Data in Excel
When we collect data, we are gathering past observed values, or realizations of
Suppose that we want to sort these automobiles by March
a variable. By collecting these past realizations of one or more variables, our
goal is to learn more about the variation of a particular business situation. 2010 sales instead of by March 2011 sales.

2.2 TYPES OF DATA To do this, we use Excel’s Sort function, as shown in the
following steps.
Population and Sample Data
Step 1. Select cells A1:F21
- Data can be categorized in several ways based on how they are Step 2. Click the Data tab in the Ribbon
collected and the type collected. In many cases, it is not feasible to Step 3. Click Sort in the Sort & Filter group
collect data from the population of all elements of interest. In such Step 4. Select the check box for My data has headers
instances, we collect data from a subset of the population known as
Step 5. In the first Sort by dropdown menu, select Sales
a sample.
(March 2010)
- A representative sample can be gathered by random Step 6. In the Order dropdown menu, select Largest to
sampling from the population data. Smallest (see Figure 2.4)
Step 7. Click OK
Quantitative and Categorical Data
Now let’s suppose that we are interested only in seeing the
- Data are considered quantitative data if numeric and sales of models made by Toyota. We can do this using
arithmetic operations, such as addition, subtraction, Excel’s Filter function:
multiplication, and division, can be performed on them
Step 1. Select cells A1:F21
- If arithmetic operations cannot be performed on the data, Step 2. Click the Data tab in the Ribbon
they are considered categorical data; Step 3. Click Filter in the Sort & Filter group
Step 4. Click on the Filter Arrow in column B, next to
- We can summarize categorical data by counting the number Manufacturer
of observations or computing the proportions of observations Step 5. If all choices are checked, you can easily deselect all
in each category choices by unchecking (Select All). Then select only the
check box for Toyota.
Cross-Sectional and Time Series Data
Step 6. Click OK
- Cross-sectional data are collected from several entities at
the same, or approximately the same, point in time. We can make all data visible again by clicking on the down
- The data in Table 2.1 are cross-sectional because they describe the 30 arrow in column B and checking (Select All) and clicking OK,
companies that comprise the Dow at the same point in time (July or by clicking Filter in the Sort & Filter Group again from the
2015). Data tab.
Conditional Formatting of Data in Excel

- Conditional formatting in Excel can make it easy to identify


data that satisfy certain conditions in a data set.

- For instance, suppose that we wanted to quickly identify the


automobile models in Table 2.2 for which sales had
decreased from March 2010 to March 2011. We can quickly
highlight these models:

Step 1. Starting with the original data shown in Figure 2.3,


select cells F1:F21
Step 2. Click the Home tab in the Ribbon
Step 3. Click Conditional Formatting in the Styles group
Step 4. Select Highlight Cells Rules, and click Less Than
from the dropdown menu
Step 5. Enter 0% in the Format cells that are LESS
THAN: box
Step 6. Click OK

- Note that Excel’s Conditional Formatting function offers


tremendous flexibility. Instead of highlighting only models
with decreasing sales, we could instead choose Data Bars
from the Conditional Formatting dropdown menu in the
Styles Group of the Home tab in the Ribbon

- The result of using the Blue Data Bar Gradient Fill option is
shown in Figure 2.8. Data bars are essentially a bar chart
input into the cells that shows the magnitude of the cell
values.

- The Quick Analysis button in Excel appears just outside the


bottom-right corner of a group of selected cells whenever
you select multiple cells. Clicking the Quick Analysis button
gives you shortcuts for Conditional Formatting, adding Data
Bars, and other operations. Clicking on this button gives you
the options shown in Figure 2.9 for Formatting. Note that
there are also tabs for Charts, Totals, Tables, and Sparklines.

2.4 CREATING DISTRIBUTIONS FROM DATA Frequency


Distributions for Categorical Data Relative Frequency and
Percent Frequency Distributions Frequency Distributions
for Quantitative Data Histograms Cumulative Distributions

2.5 MEASURES OF LOCATION Mean (Arithmetic Mean)


Median Mode Geometric Mean

2.6 MEASURES OF VARIABILITY Range Variance Standard


Deviation Coefficient of Variation

2.7 ANALYZING DISTRIBUTIONS Percentiles Quartiles z-


Scores Empirical Rule Identifying Outliers Box Plots

2.8 MEASURES OF ASSOCIATION BETWEEN TWO


VARIABLES Scatter Charts Covariance Correlation
Coefficient

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