Class Lectures on

Business Statistics-II
Course code: STAT- 2207

Prepared By
S. M. Shariful Haque
Assistant Professor
Department of Marketing

Jashore University of Science and Technology

 Lecture-1
Statistics is a number used to communicate a piece of information.

Statistics is the science of collecting, organizing presenting, analyzing and interpreting data to
assist in making more effective decisions.

Example: The inflation in the year 2022 is 6.5%. By applying statistics, we can compare this
year's inflation rate to the past observations of inflation, whether it is higher, lower or the same.

Types of statistics→

Generally, there are two types of statistics -

1. Descriptive statistics

2. Inferential statistic

1. Descriptive statistics :( Generally works with population):

It is the method of organizing, summarizing and presenting data in an informative way.

Example →There are 300 seats in Parliament National Election in Bangladesh.

2. Inferential statistics: (Generally works with sample)

It involves taking a sample from a population and making estimates about a population
based on the sample results.

Example- The food habits of Monihar area of Jashore signifies that people of Jashore love junk
foods.
❖ Difference between descriptive and inferential statistics-

Basis of comparison Descriptive Inferential

1. Meaning:

2. What it does? Organize, analyze and present Compares, test and predict
data in a meaningful way. data.

3. Form of final results: Charts, graphs and tables. Probability.

4. Usage: To describe a situation. To explain the chances of

occurrence of an event.

5. Function: It explains the data which is It attempts to reach the

already known, to summarize conclusion to learn about the
sample. population that extends
beyond the data available.

6. Example: Literacy rate of Jashore is The food habits of Monihar

70%. area of Jashore signifies that
people of Jashore loves junk
foods.
 Lecture - 2

❖ Difference between population and sample:-

Basis of comparison population Sample

1. Meaning population includes the inter Sample means a sub-group of

set of data collection of all the members of population
elements, Possessing common chosen for participation in the
characteristics. study.

2. Includes Each and every unit of the Only a handful unit of

group. population

3. Characteristics Population characteristic is Sample characteristic is called

called parameter. statistics.

4. Advantage When the entire population is If sample is representative part

used to carry out a study of the population. Reliable
result, the result could be more estimates can be made with
accurate. less time and effort used

5. Disadvantage In more cases it is impossible If the sample selected is not

to test entire population. representative part of the
population, the result will not
be satisfactory.

6. Focus on Identifying the characteristics. Making inference about the

population.

7. Example All kids registered in a kids who got an A+ .

school.

.
Test:-1
A survey will be given to 100 students randomly selected from all the class at Jashore English
School. In this case what is the population and what to the sample?

Answer: - "All the class at school is Population and 100 students is in sample.

Test :-2
50 bottles of water were randomly selected from a large collection of bottles in a company
warehouse, the large collections, of bottle is required to parameter on statistics?

Answer :- Parameter.

❖ In classifying variable:

There one 2 types of variable

1. Qualitative (categorical variable)

2. Quantitative (Numerical variable)

1. Qualitative variable:-

When an object or individual is numeric observed and recorded characteristics, it is called

qualitative variable.

When a variable is qualitative, we usually count the number of observations for each category
and determined what percentages are there in each category. It is often summarize in char and
ban graphs.

Example: - Gender age. Birth, color of eyes, state of etc.

2 Quantitative variables:

When variable can be reported numerically, the variable it called quantitative/Numerical

variable.

Example: The balance in your bank account, the number of employee work in your company etc.
These variables are 2 types:-

i) Discrete

ii) continuous.

i) Discrete variable:-

Variables that can only take a finite numbers of values are called discrete variable.

Example: Number of wickets taken by a player, votes cast in an election.

ii) Continuous variable:-

A numerical/quantitative variable is said to be a continuous variable it is take an infinite number

of real values within a given interval or range.

It can positive, negative, fractional and decimal values. (-2, +1, -2 ,-2, .05) continuous data can
change overtime.

Example: Height of people living in the Asian continent. Speed of air plane, weight of student in
a school.

Qualitative / categorical variable:-

It is a variable that has two or more categories with on intrinsic ordering to the categories.

Example: - sex, age group education level.

 Lecture-3

❖ 4 scale of measurement—

1. Nominal scale.
2. Ordinal scale.
3. Interval scale.
4. Ratio scale.

Nominal Scale→
I. Used to label or categorize or classify variables.
II. Mutually exclusive sub-class.
III. No numerical significance
IV. It represents the lowest level of hierarchy.
V. It is a qualitative scale.

Ordinal scale→
I. It is used to categorize and also used to arrange the data in order.
II. It supplies more information than nominal scale.
III. It doesn't indicate the amount by which participants differ and thus the measurement
carried out at ordinal scale, does not reflect the property of equal interval between the
well classified and ranked categories.
IV. It is also a qualitative scale.

Interval scale→
I. It is a quantitative scale.
II. It includes the concept of equal intervals between the events that are ordered.
III. It has "0" but not absolute or true "0"'
IV. '+', '-' operation are possible
RATIO→
I. It is a quantitative scale.
II. It supplies more information than the interval scale.
III. It includes the concept of true or absolute '0'
IV. '+', '-', '*', '÷' etc. are possible.
 Lecture-4

Sampling:

Sampling is a process of statistical analysis where researchers take a pre-determined number of

observations from a larger population.

It is defined as a procedure to select a sample from individual or from a large group for certain
kind of research purpose.

❖ There are two different methods which is used in sampling -

1. Probability sampling: It involves selecting individuals from a population in a way that every
individual has a known and equal chance of being selected. This method ensures that sample is
representative of the entire population and allows for accurate statistical inference.

Example: Suppose you are conducting a survey about favorite ice-cream flavors among students
in a school. If you assign each student a number and use a random number generation to select
100 students from the entire school populations that would be an example of probability
sampling

2. Non- probability sampling : It involves selecting individuals from a population without giving
every individual an equal chance of being selected. This method may lead to a biased sample and
makes it difficult to generalize finding to the entire population.

Non-probability sample is often used when probability sampling methods are impractical or too
costly.
Example: If you stand outside a shopping mall which is nearer to your house and ask people
passing by to participate in your survey about smartphone preferences; this could be an example
of non-probability sampling.

It is convenient, but it might not accurately represent the broader population preferences.

❖ There are 4 types of Probability Sampling—

1. Simple Random Sampling.

2. Systematic sampling.
3. Stratified sampling
4. Cluster sampling.

1. Simple Random Sampling (SRS): It involves randomly selecting elements without any
specific pattern or criteria, ensuring each element has an equal probability of being chosen in the
sample.

SRS is applicable under certain conditions—

● It is conducted when the population is homogenous.

● It is conducted when the population is very small.
● It is easy to conduct.

2. Systematic sampling: This method ensures that every nth element or individual from a
population is selected for inclusion in the sample.

This method ensures that the sample is representative of the population, as long as the initial item
is chosen randomly and the interval is consistent.

It is applicable under certain conditions→

● Every nth element of population will be selected as a member of sample.

 ● It is conducted when the population is homogenous.
● It is conducted when the population is very small.

Lecture- 5

3. Stratified Sampling:

● It is conducted when Population is heterogeneous.

● Researchers devides the whole population into strata.
● Strata means layer
● If the Researchers selects the Sample according to the proportion of the Population

4.Cluster Sampling

● It is also known as area Sampling

● Researcher divides the whole Population includes various the whole zones and
● then he/she selects one zone randomly.
● All the elements of that selected zone is considered as Sample.
● Not Selected a Single element of the Zone can be thrown away.

❖ Non-Probability Sampling

It is defined as technique in which the researcher selects Samples based on the subjective
judgment of the researcher rather than random selection.

In this method, not all population members have an equal chance of participating in the study.
❖ It is mainly of 4 types-

1. Convenience Sampling.
2. Judgmental Sampling
2. Quota Sampling
3. Snowball Sampling

1. Convenience Sampling
● It is also known as accidental/ incidental sampling
● Researcher collects sample from those who were available at that of time.
● It is often used when other types of sampling methods are hard or impossible to use
because of time, cost and other issues.

2. Judgemental Sampling
● It is also known as purposive sampling
● Here researcher selects sample by his/her own uses Judgment. He/she uses his/her
experience to judge for selecting the sample.
● Sometimes it is done, when researcher has less time low budget.

3. Quota Sampling
● As its name suggests percentage on number of sample which should be taken from each
group is already fixed.
● When researcher wants to focus on a particular group and compare relationships between
different groups, then quota sampling can be applied.
● If anyone has budget limitation and wants quick results, then quota sampling can be most
appropriate.
4. Snowball Sampling
● If the population of interest is hand to access on locate.
● If the research focuses on topic.
● Researcher seeks help from participants to identity additional participants.

Lecture 10
 ❖ One-Sample tests of Hypothesis

Hypothesis: Hypothesis is a statement about a population parameter subject to verification.

Hypothesis Testing: It is a procedure based sample evidence and probability theory to determine
whether the hypothesis is a reasonable statement.

There are six-step procedures for testing a hypothesis—

1. Establish the null hypothesis (Ho) and the alternative hypothesis(H1)

2. Select the level of significance.

3. Select an appropriate test statistic.

4. Formulate a decision rule based on steps 1, 2 and 3.

5. Make a decision regarding the (Ho) based on sample information.

6. Interpret the results of the test.

Step-1: State the null hypothesis (Ho) and the alternative hypothesis (H1).

Null hypothesis (H0): A statement about the value of a population parameter developed for the
purpose of testing numerical evidence.

Alternative hypothesis (H1): A statement that is accepted if the sample data provide sufficient
evidence that the null hypothesis (Ho) is false.

Step 2: Select a level of significance.

A Level of significance is the probability of rejecting the null hypothesis (Ho) when it is true.

Type I error: Rejecting the null hypothesis (Ho) when it is true.

Type II error: Not rejecting the null hypothesis (Ho) when it is false.

Step 3: Select the test statistic.

Test statistic is a value, determined from sample information, used to determine whether to reject
the null hypothesis (Ho).

Step 4: Formulate the decision rule.

Formulate the decision rule based on step 1, 2 and 3.

Critical value is the dividing point between the region where the null hypothesis (Ho) is rejected
and the region where it is not rejected.

Step 5: Make a decision.

This step is to compute the value of test statistic, compare its value to the critical value and make
a decision to reject or not to reject the null hypothesis (Ho).

Step 6: Interpret the result.

The final step is to interpret the results.

Here it is interpreted clearly whether the null hypothesis is rejected or not.