Business Statistics

with Demography
LENARD J. JACILDO
Instructor
 Educated Decision

Effectively conduct research

Research may find

its way into your life
Read Journals
Develop critical
and analytic
thinking skills
Be an
informed
consumer.
To know when
you need to hire a
statistician
“Statistics … . What they reveal is
suggestive, but what they conceal is
vital”
― Aaron Levenstein
 Definitions of Statistics

•A branch of science which deals with the collection,

organization, presentation, analysis, and interpretation of
data.
•A body of techniques and procedures dealing with the
collection, organization, analysis, interpretation, and
presentation of information that can be stated numerically.
•The backbone of Research
 Two Branches of Statistics

Descriptive Statistics
◦ deals with organizing and summarizing observations so
that they are easier to comprehend
◦ used to describe the basic features of the data in a study
◦ provide simple summaries about the sample and the
measures
 Two Branches of Statistics

Inferential Statistics
◦ deals with the formulation of inferences about conditions
that exist in a population from study of a sample drawn from
a population.
◦ make inferences from the data to more general conditions
 Identify each of the following as either
descriptive or inferential statistics.
1. The average salary of a random sample of 50 high school teachers in 2010 was
$52,400.
2. Based on a random sample, it was concluded that the average cost of a hotel room in
Chicago was greater than one in Atlanta.
3. A study has concluded that the average credit card debt of college graduates has
increased from the year 2009 to 2010.
4. The average Amazon.com rating of the book The Complete Idiot’s Guide to Statistics
by 26 reviewers is 4.6 on a scale of 1 to 5.
 The Research Process
This course will be discussed considering the role of statistics in the
research, particularly quantitative research, process.

Formulate the problem

◦ S – pecific
◦ M - easurable
◦ A – attainable
◦ R – ealistic
◦ T – ime bound
 The Research Process

Define the population of the study

◦ Population
– all subjects under investigation
– the set of all elements of interest in a particular study

◦ Sample – a subset of the population

 The Research Process

Identify the variable/s of the study

◦ Variable – measurable characteristic of the subject

– any entity that can take on different values
 Try this
Problem:
What is the mean weekly allowance of a USLS BSTAT student for
the first semester of AY 2020-2021?

Population of study:-
▪All USLS BStat students for the first semester, AY 2020 – 2021
Variable/s
 1. In the year 2030, 78 million
Filipinos will be enrolled in an HMO.
In each of these 2. Six out of ten on-the-job fatalities
statements, tell are men.
whether descriptive 3. Expenditures for the cable
or inferential industry were $5.66 billion in 1996.
statistics have been 4. The median household income for
used. people aged 25–34 is $35,888.
5. Allergy therapy makes bees go
away.
For each of these statements, define a
population and identify the variable of
interest.

1. More than 1 in 4 children in the United

States have cholesterol levels of 180 milligrams
or higher.

2. When older people with mild to moderate

hypertension was given mineral salt for 6
months, the average blood pressure reading
dropped by 8 points systolic and 3 points
diastolic.
Business Statistics
with Demography
LENARD J. JACILDO
Instructor
 GOALS AND TYPES OF
ANALYSIS
Analytic goals: directed toward finding out from the data one
or more of the attributes of characteristics of the group being
studied.
 Analytic goals

1.Central tendency – general characteristic of the group

Examples:
a. To determine the mean weekly allowance of USLS College Junior for the
first semester, AY 2017 – 2018.
b. To determine the percentage of USLS College students who prefer an
iPhone over a Samsung cellphone.
 Analytic goals

2. Variance in the group – how individual members of the group vary from the
average characteristic of the group
Examples:
a. To determine the age range of the students in this Statistics class.
b. To determine if the final grades in this Statistics class are similar.
 Analytic goals

3. Difference within the group/between groups – whether subgroups of

the group/ two separate groups being studied are different or similar on
certain traits investigated
◦ Examples:
a. To compare the mean no. of Coke sakto bottles consumed in a week
between the male and female USLS students.
◦ b. To determine if there is a significant difference in the mean number of
text messages sent in a day among the students from the five different
colleges of USLS.
 Analytic goals

4. Relationships within the group – if relationship between certain

variables covered in the study exist
Examples:
a. To establish if there is a significant relationship between choice of
cellphone brand and the college a USLS student belongs to

b. To determine if relationship status and final grades in Statistics are

independent
 Analytic goals

5. Prediction – establishing a mathematical/statistical model to predict

future outcomes
Examples:
a. What factors influence a graduate’s ability to land a job within one
year after graduation?

b. What are the estimated sales of a particular restaurant for next week
if the present conditions hold?
Business Statistics
with Demography
LENARD JACILDO
Instructor
 Types of Analysis:

1. Descriptive –
◦ limited to the description of the particular group being studied
◦ a conclusion cannot be applied to cases outside the study group
2. Inferential –
◦ application of the findings or conclusions from a small group to a
large group from which the smaller group was drawn
 Types of Variables:
Qualitative/Categorical
◦ Attributes are in terms of categories
Examples:
a. sex: Male Female
b. religious affiliation: Roman Catholic, INC, Baptist, Islam, etc…
Quantitative/Numerical
◦ Attributes are in terms of counts or measurements
 Quantitative/Numerical

Distinctions:
a. Discrete Variable
◦ uses the process of counting to generate data
◦ values of attributes are in terms of whole numbers only
Examples:
a. Number of t-shirts
b. Number of pocketbooks owned
 Quantitative/Numerical

B. Continuous Variable
◦ uses the process of measuring to generate data
◦ values of attributes may have fractional or decimal parts
Examples:
a. Weight of a package
b. Volume of water
 Functions of variables:

Important if the investigation is about cause and effect

Distinctions:

a. Independent Variable
- what the researcher (or nature) manipulates. It is a treatment or program
or cause

b. Dependent Variable
- what is affected by the independent variable. It is the effects or outcomes
Example:
Study/Problem: the effects of a new educational program on student
achievement

Independent variable - the program

Dependent variables - measures of achievement

 Measurement

Measurement – The process of assigning numbers to observations

Scales of measurement refer to ways in which variables/numbers are
defined and categorized. Each scale of measurement has certain properties
which in turn determines the appropriateness for use of certain statistical
analyses. The four scales of measurement are nominal, ordinal, interval, and
ratio.
 Levels of Measurement

1. Nominal Level
◦ Consists of numbers which indicate categories for purely
classification or identification purposes The categories are mutually
exclusive (the observations cannot fall into more than one category)
◦ The categories are exhaustive (there must be enough categories for
all the observations)
❖ Nominal level
The nominal level of measurement applies to data that
consist of names, labels, or categories. There are no
implied criteria by which the data can be ordered from
smallest to largest.

Example: sex, ses, civil status, blood type, religion

 Levels of Measurement

2. Ordinal Level
◦ Possesses rank order characteristics
◦ the categories must still be mutually exclusive and exhaustive, but
they also indicate the order of magnitude of some variable
❖ Ordinal level
The ordinal level of measurement applies to data
that can be arranged in order. However, differences
between data values either cannot be deter- mined or
are meaningless.

Example: Course grades A, B, C, D, or F, birth order,

result of beauty contest
 Levels of Measurement

3. Interval Level
◦ Has all the properties of the ordinal scale
◦ A given interval (distance) between scores has the same meaning
anywhere on the scale
◦ Intervals provide information about how much better one value is
compared with another
◦ Has no absolute zero (zero does not mean "absence")
❖ Interval level
The interval level of measurement applies to data that
can be arranged in order. In addition, differences
between data values are meaningful. However, there is
no natural zero starting point (where none of the
quantity is present)

Example: Years 1000, 2000, 1776, and 1492,

temperature and IQ
 Levels of Measurement

4. Ratio Level
◦ Possesses all the characteristics of the interval scale
◦ Has a true or absolute zero point (zero means "none" or "absence of the
variable").
◦ The ratio of two values is meaningful
❖ Ratio level

The ratio level of measurement applies to data that

can be arranged in order. In addition, both differences
between data values and ratios of data values are
meaningful. Data at the ratio level have a true zero.

Example: Prices of college textbooks ($0 represents no

cost), height, weight and speed
 Summary - Levels of Measurement

❖ Nominal - categories only

❖ Ordinal - categories with some order
❖ Interval - differences but no natural starting point
❖ Ratio - differences and a natural starting point
Identify the level of measurement for each
of the following:

1. The senator’s name is Sam Wilson

2. The senator is 58 years old
3. The years in which the senator was
elected to the Senate are 1992, 1998, and
2004.
4. The senator’s total taxable income last
year was $878,314.
 Identify the level of measurement for each
of the following:

5. The senator surveyed his constituents regarding his

proposed water protection bill. The choices for response
were strong support, support, neutral, against, or strongly
against.
6. The senator’s marital status is “married.”
7. A leading news magazine claims the senator is ranked
seventh for his voting record on bills regarding public
education.
 Indicate whether the following are qualitative (QL), quantitative discrete
(QD) or quantitative continuous (QC) variables and the corresponding level
of measurement

a. Brand of jeans you prefer g. Effectiveness of a drug for headache, using

a rating scale
b. Ratio of current assets to current liabilities
h. Earnings per share
c. Number of text messages received per day
i. Number of leaves
d. Number of banks in the municipalities and
cities of Negros Occidental j. Weekly allowance
e. Ranking of professional tennis players k. Distance of the student’s house from
school
f. Scores of freshmen college students on an
attitude towards math scale l. Color of the hair
m. Zip code