Name : Prerna Tripathi

Roll Number: 2214509789

Program:MBA

Semester: 1

Code:DMBA103

STATISTICS FOR MANAGEMENT ASSIGNMENT SET 1 AND SET2

A1 Statistics Definition: Statistics is a branch that deals with every aspect of the data. Statistical
knowledge helps to choose the proper method of collecting the data and employ those samples in the
correct analysis process in order to effectively produce the results. In short, statistics is a crucial process
which helps to make the decision based on the data.

In Mathematics, statistics concerns the collection of data, organisation, interpretation, analysis and data
presentation. The main purpose of using statistics is to plan the collected data in terms of experimental
designs and statistical surveys. Statistics is considered a mathematical science that works with numerical
data. In short, statistics is a crucial process which helps to make the decision based on the data.

An example of statistical analysis is when we have to determine the number of people in a town who
watch TV out of the total population in the town. The small group of people is called the sample here,
which is taken from the population.

Types of Statistics

The two main branches of statistics are:

Descriptive Statistics

Inferential Statistics

Descriptive Statistics – Through graphs or tables, or numerical calculations, descriptive statistics uses the
data to provide descriptions of the population.

Inferential Statistics – Based on the data sample taken from the population, inferential statistics makes
the predictions and inferences.
Characteristics of Statistics

The important characteristics of Statistics are as follows:

Statistics are numerically expressed.

It has an aggregate of facts

Data are collected in systematic order

It should be comparable to each other

Data are collected for a planned purpose

Importance of Statistics

The important functions of statistics are:

Statistics helps in gathering information about the appropriate quantitative data

It depicts the complex data in graphical form, tabular form and in diagrammatic representation to
understand it easily

It provides the exact description and a better understanding

It helps in designing the effective and proper planning of the statistical inquiry in any field

It gives valid inferences with the reliability measures about the population parameters from the sample
data

It helps to understand the variability pattern through the quantitative observations

To learn more about Statistical terms and formulas, register with BYJU’S – The Learning App today.

What is Statistics?

Statistics is the branch of mathematics for collecting, analysing and interpreting data. Statistics can be
used to predict the future, determine the probability that a specific event will happen, or help answer
questions about a survey. Statistics is used in many different fields such as business, medicine, biology,
psychology and social sciences.
What are the types of statistics?

There are two types of statistics. One type is called descriptive statistics, which focuses on summarising
data. Another type is called inferential statistics, which focuses on making conclusions about populations
based on samples.

Why are statistics vital?

Statistics is an important field because it helps us understand the general trends and patterns in a given
data set. Statistics can be used for analysing data and drawing conclusions from it. It can also be used for
making predictions about future events and behaviours. Statistics also help us understand how things
are changing over time.

What are the uses of statistics in real life?

Statistics is an integral part of our lives. It is used in the workplace and everyday life. In the workplace,
statistics are often used to analyse what works best for a company’s marketing strategy or how to
distribute work among employees. In daily life, statistics can be used to analyse what food you should
buy at the grocery store or how much money you spend on purchasing each week. Statistics are
everywhere, and they help us make sense of the world around us.

What are the most important concepts covered in statistics?

The most important concepts covered in Statistics include mean, median, mode, range, and standard
deviation.

A2.Survey Data: Definition

Survey data is defined as the resultant data that is collected from a sample of respondents that took a
survey. This data is comprehensive information gathered from a target audience about a specific topic to
conduct research. There are many methods used for survey data collection and statistical analysis.

Various mediums are used to collect feedback and opinions from the desired sample of individuals.
While conducting survey research, researchers prefer multiple sources to gather data such as online
surveys, telephonic surveys, face-to-face surveys, etc. The medium of collecting survey data decides the
sample of people that are to be reached out to, to reach the requisite number of survey responses.
Factors of collecting survey data such as how the interviewer will contact the respondent (online or
offline), how the information is communicated to the respondents etc. decide the effectiveness of
gathered data.

Survey Data Collection Methods with Examples

The methods used to collect survey data have evolved with the change in technology. From face-to-face
surveys, telephonic surveys to now online and email surveys, the world of survey data collection has
changed with time. Each survey data collection method has its pros and cons, and every researcher has a
preference for gathering accurate information from the target sample.

The survey response rates for each of these data collection methods will differ as their reach and impact
are always different. Different ways are chosen according to specific target population characteristics and
the intent to examine human nature under various situations.

Types of survey data based on deployment methods:

There are four main survey data collection methods – Telephonic Surveys, Face-to-face Surveys, and
Online Surveys.

Online Surveys

Online surveys are the most cost-effective and can reach the maximum number of people in comparison
to the other mediums. The performance of these surveys is much more widespread than the other data
collection methods. In situations where there is more than one question to be asked to the target
sample, certain researchers prefer conducting online surveys over the traditional face-to-face or
telephone surveys.

Online surveys are effective and therefore require computational logic and branching technologies for
exponentially more accurate survey data collection vs any other traditional means of surveying. They are
straightforward in their implementation and take a minimum time of the respondents. The investment
required for survey data collection using online surveys is also negligible in comparison to the other
methods. The results are collected in real-time for researchers to analyze and decide corrective
measures.
A very good example of an online survey is a hotel chain using an online survey to collect guest
satisfaction metrics after a stay or an event at the property.

Learn more: Quality Of Life Survey Questions + Sample Questionnaire Template

Online surveys are safe and secure to conduct. As there is no in-person interaction or any direct form of
communication, they are quite useful in times of global crisis. For instance, many organizations moved to
contactless surveys during the pandemic. It helped them ensure that the employees are not
experiencing any COVID-19 symptoms before they come to the office.

Learn more: Contactless Health-Screen Survey Questions + Sample Questionnaire Template

Face-to-face Surveys

Gaining information from respondents via face-to-face mediums is much more effective than the other
mediums because respondents usually tend to trust the surveyors and provide honest and clear
feedback about the subject in-hand.

Researchers can easily identify whether their respondents are uncomfortable with the asked questions
and can be extremely productive in case there are sensitive topics involved in the discussion. This online
data collection method demands more cost-investment than in comparison to the other methods.
According to the geographic or psychographic segmentation, researchers must be trained to gain
accurate information.

For example, a job evaluation survey is conducted in person between an HR or a manager with the
employee. This method works best face-to-face as the data collection can collect as accurate information
as possible.
Telephone Surveys

Telephone surveys require much lesser investment than face-to-face surveys. Depending on the required
reach, telephone surveys cost as much or a little more than online surveys. Contacting respondents via
the telephonic medium requires less effort and manpower than the face-to-face survey medium.

If interviewers are located at the same place, they can cross-check their questions to ensure error-free
questions are asked to the target audience. The main drawback of conducting telephone surveys is that
establishing a friendly equation with the respondent becomes challenging due to the bridge of the
medium. Respondents are also highly likely to choose to remain anonymous in their feedback over the
phone as the reliability associated with the researcher can be questioned.

For example, if a retail giant would like to understand purchasing decisions, they can conduct a
telephonic, motivation, and buying experience survey to collect data about the entire purchasing
experience.

Paper Surveys

The other commonly used survey method is paper surveys. These surveys can be used where laptops,
computers, and tablets cannot go, and hence they use the age-old method of data collection; pen and
paper. This method helps collect survey data in field research and helps strengthen the number of
responses collected and the validity of these responses.

A3.Sampling Methods | Types, Techniques & Examples

When you conduct research about a group of people, it’s rarely possible to collect data from every
person in that group. Instead, you select a sample. The sample is the group of individuals who will
actually participate in the research.

To draw valid conclusions from your results, you have to carefully decide how you will select a sample
that is representative of the group as a whole. There are two types of sampling methods:

Probability sampling involves random selection, allowing you to make strong statistical inferences about
the whole group.
Non-probability sampling involves non-random selection based on convenience or other criteria,
allowing you to easily collect data.

You should clearly explain how you selected your sample in the methodology section of your paper or
thesis.

Table of contents

Population vs sample

First, you need to understand the difference between a population and a sample, and identify the target
population of your research.

The population is the entire group that you want to draw conclusions about.

The sample is the specific group of individuals that you will collect data from.

The population can be defined in terms of geographical location, age, income, and many other
characteristics.

Population vs sampleIt can be very broad or quite narrow: maybe you want to make inferences about
the whole adult population of your country; maybe your research focuses on customers of a certain
company, patients with a specific health condition, or students in a single school.

It is important to carefully define your target population according to the purpose and practicalities of
your project.

If the population is very large, demographically mixed, and geographically dispersed, it might be difficult
to gain access to a representative sample.

Sampling frame

The sampling frame is the actual list of individuals that the sample will be drawn from. Ideally, it should
include the entire target population (and nobody who is not part of that population).
Example: Sampling frame

You are doing research on working conditions at Company X. Your population is all 1000 employees of
the company. Your sampling frame is the company’s HR database which lists the names and contact
details of every employee.

Sample size

The number of individuals you should include in your sample depends on various factors, including the
size and variability of the population and your research design. There are different sample size
calculators and formulas depending on what you want to achieve with statistical analysis.

Probability sampling methods

Probability sampling means that every member of the population has a chance of being selected. It is
mainly used in quantitative research. If you want to produce results that are representative of the whole
population, probability sampling techniques are the most valid choice.

There are four main types of probability sample.

Probability sampling

1. Simple random sampling

In a simple random sample, every member of the population has an equal chance of being selected. Your
sampling frame should include the whole population.

To conduct this type of sampling, you can use tools like random number generators or other techniques
that are based entirely on chance.

Example: Simple random sampling

You want to select a simple random sample of 100 employees of Company X. You assign a number to
every employee in the company database from 1 to 1000, and use a random number generator to select
100 numbers.

2. Systematic sampling

Systematic sampling is similar to simple random sampling, but it is usually slightly easier to conduct.
Every member of the population is listed with a number, but instead of randomly generating numbers,
individuals are chosen at regular intervals.

Example: Systematic sampling

All employees of the company are listed in alphabetical order. From the first 10 numbers, you randomly
select a starting point: number 6. From number 6 onwards, every 10th person on the list is selected (6,
16, 26, 36, and so on), and you end up with a sample of 100 people.

If you use this technique, it is important to make sure that there is no hidden pattern in the list that
might skew the sample. For example, if the HR database groups employees by team, and team members
are listed in order of seniority, there is a risk that your interval might skip over people in junior roles,
resulting in a sample that is skewed towards senior employees.

3. Stratified sampling

Stratified sampling involves dividing the population into subpopulations that may differ in important
ways. It allows you draw more precise conclusions by ensuring that every subgroup is properly
represented in the sample.

To use this sampling method, you divide the population into subgroups (called strata) based on the
relevant characteristic (e.g. gender, age range, income bracket, job role).

Based on the overall proportions of the population, you calculate how many people should be sampled
from each subgroup. Then you use random or systematic sampling to select a sample from each
subgroup.

Example: Stratified sampling

The company has 800 female employees and 200 male employees. You want to ensure that the sample
reflects the gender balance of the company, so you sort the population into two strata based on gender.
Then you use random sampling on each group, selecting 80 women and 20 men, which gives you a
representative sample of 100 people.

4. Cluster sampling

Cluster sampling also involves dividing the population into subgroups, but each subgroup should have
similar characteristics to the whole sample. Instead of sampling individuals from each subgroup, you
randomly select entire subgroups.

If it is practically possible, you might include every individual from each sampled cluster. If the clusters
themselves are large, you can also sample individuals from within each cluster using one of the
techniques above. This is called multistage sampling.

This method is good for dealing with large and dispersed populations, but there is more risk of error in
the sample, as there could be substantial differences between clusters. It’s difficult to guarantee that the
sampled clusters are really representative of the whole population.

Example: Cluster sampling

The company has offices in 10 cities across the country (all with roughly the same number of employees
in similar roles). You don’t have the capacity to travel to every office to collect your data, so you use
random sampling to select 3 offices – these are your clusters.

A4.Index Numbers: Methods of Construction of Index Number!

An index number is a statistical derives to measure changes in the value of money. It is a number which
represents the average price of a group of commodities at a particular time in relation to the average
price of the same group of commodities at another time.

Construction

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Professor Chandler defines it thus: “An index number of prices is a figure showing the height of average
prices at one time relative to their height at some other time that is taken at the base period.” To
understand the meaning of the term index number, three points are to be noted.

First, an average figure relates to a single group of commodities. But the various items in the group are
expressed in different units. For example, a consumer price index contains such diverse items as food,
clothing, fuel and lighting, house rent, and miscellaneous things. Food consists of wheat, ghee, etc.
expressed in kgs. cloth is expressed in metres, and lighting in kws.

An index number expresses the average of all such diverse items in different units. Second, an index
number measures the net increase or decrease of the average prices for the group under study. For
instance, if the consumer price index has increased from 150 in 1982 as compared to 100 in 1980, it
shows a net increase of 50 per cent in the prices of commodities included in the index. Third, an index
number measures the extent of changes in the value of money (or price level) over a period of time,
given a base period. If the base period is the year 1970, we can measure change in the average price
level for the preceding and succeeding years.

Methods of Construction of Index Number:

In constructing an index number, the following steps should be noted:

1. Purpose of the Index Number:

Before constructing an index number, it should be decided the purpose for which it is needed. An index
number constructed for one category or purpose cannot be used for others. A cost of living index of
working classes cannot be used for farmers because the items entering into their consumption will be
different.
2. Selection of Commodities:

Commodities to be selected depend upon the purpose or objective of the index number to be
constructed. But the number of commodities should neither be too large nor too small.

Moreover, commodities to be selected must be broadly representative of the group of commodities.

They should also be comparable in the sense that standard or graded items should be taken.

3. Selection of Prices:

The next step is to select the prices of these commodities. For this purpose, care should be taken to
select prices from representative persons, places or journals or other sources. But they must be reliable.
Prices may be quoted in money terms i.e. Rs. 100 per quintal or in quantity terms, i.e. 2 kg. per rupee.
Care should be taken not to mix these prices. Then the problem is to select wholesale or retail prices.
This depends on the type of index number. For a consumer price index, wholesale prices are required,
while for a cost of living index, retail prices are needed. But different prices should not be mixed up.

4. Selection of an Average:

Since index numbers are averages, the problem is how to select an appropriate average. The two
important averages are the arithmetic mean and geometric mean. The arithmetic mean is the simpler of
the two. But geometric mean is more accurate. However, the average prices should be reduced to price
relatives (percentages) either on the basis of the fixed base method or the chain base method.

5. Selection of Weights:

While constructing an index number due weightage or importance should be given to the various
commodities. Commodities which are more important in the consumption of consumers should be given
higher weightage than other commodities. The weights are determined with reference to the relative
amounts of income spent on commodities by consumers. Weights may be given in terms of value or
quantity.

6. Selection of the Base Period:

The selection of the base period is the most important step in the construction of an index number. It is a
period against which comparisons are made. The base period should be normal and free from any
unusual events such as war, famine, earthquake, drought, boom, etc. It should not be either very recent
or remote.

7. Selection of Formula

A number of formulas have been devised to construct an index number. But the selection of an
appropriate formula depends upon the availability of data and purpose of the index number. No single
formula may be used for all types of index numbers.

We give below an example each of the simple price index and the weighted price index.

Simple Price Index:

To construct a simple price index, compute the price relatives and average them. Add the price relatives
and divide them by the number of items

A5.Advantages and Disadvantages of Forecasting

The advantages pertaining to forecasting include the following:

Insight Creation - Gaining insight is a must for operations that are seeking to generate adequate
forecasts. Forecasting gets you into the habit of looking at the past and real-time data to predict future
demand. While doing this, you will be able to anticipate demand fluctuations more effectively. It also will
provide insight into your company’s supply chain health and provide you with an opportunity to make
any corrections or adjustments based off of new information that is received through real-time data.

Learning From Past Mistakes - Forecasting also enables you to make decisions based off of past errors
and could provide insight on how to correct these in the future. You don’t start from scratch after each
forecast. Even if your prediction was nowhere close to what ended up coming to pass, it provides a
starting point. It is common to review where and why things didn’t happen the way you had predicted
and you should be able to see an improvement in your forecasts. You will also get into the habit of
reflecting upon past performance as a whole.

Cost Decrease - Cost decrease is another substantial factor within manufacturing operations considering
that forecasting can reduce the amount of errors due to following a schedule based off of the past.
Anticipating demand will aid you with tweaking your processes to increase efficiency all along the supply
chain. Because you are able to predict what customers will want and when they’ll want it, you will
ultimately be able to decrease excess inventory levels and increase overall profitability.

The disadvantages pertaining to forecasting include the following:

Forecasts are Never Completely Accurate - Forecasts are never 100% and it is almost impossible to
predict the future with certainty. Even if you have a great process in place and forecasting experts on
your payroll, your forecasts will never be spot on. Some products and markets will have a high level of
volatility, especially during times of crisis. The coronavirus has definitely enhanced and increased this
volatility within the market - which is why understanding what factors influence your demand can
potentially aid with developing forecasts during this time. Having said that, the main drawback of
forecasts are that they are almost always wrong - which leads to excess or shortage of inventory.

It can be Time-Consuming and Resource-Intensive - Forecasting pertains to data gathering, data

organizing, and coordination. Companies will employ a team of demand planners who are responsible
for coming up with the forecast. In order to adequately conduct this function, demand planners will
need a substantial amount of input from sales and marketing teams. It is also not uncommon for process
to be manual and labor-intensive, which will ultimately take up a lot of time. If you have the correct
technology in the right place, it is much less of an issue.

Could be Costly - Forecasting can be extremely costly - especially if it is done right. If you want adequate
and close-to-accurate forecast, you have to spend the money, time, and resources to do so. Hiring a
team of demand planners is a significant investment and adds to the cost of utilizing quality tools. While
it is costly, you should easily see a return on this investment over time and your forecast should be much
more accurate, thus saving you money and paying for itself in the long run.

A software that can aid with adequate and appropriate forecasting pertains to PlanetTogether’s
Advanced Planning and Scheduling (APS) Software. Advanced Planning and Scheduling (APS) Software
can aid with forecasting through utilizing real-time and historical data and ultimately coming up with a
production plan that enables manufacturers to reduce waste and increase profitability. Advanced
Planning and Scheduling (APS) Software increases operational efficiency through utilizing these forecasts
and ultimately coming up with a production plan that is the most efficient for their manufacturing
operation. PlanetTogether’s APS Software is a must for manufacturing facilities that are seeking to
maintain a competitive edge and take their operation to the next level.

Advanced Planning and Scheduling Software

Advanced Planning and Scheduling (APS) software has become a must for modern-day manufacturing
operations due to customer demand for increased product mix and fast delivery combined with
downward cost pressures. APS can be quickly integrated with a ERP/MRP software to fill gaps where
these system lack planning and scheduling flexibility and accuracy. Advanced Planning and Scheduling
(APS) helps planners save time while providing greater agility in updating ever-changing priorities,
production schedules, and inventory plans.

Create optimized schedules balancing production efficiency and delivery performance

Maximize output on bottleneck resources to increase revenue

Synchronize supply with demand to reduce inventories

Provide company-wide visibility to capacity

Enable scenario data-driven decision making

Implementation of Advanced Planning and Scheduling (APS) software will take your manufacturing
operations to the next level of production efficiency, taking advantage of the operational data you
already have in your ERP.

A6As a topic of economics, utility is used to model worth or value. Its usage has evolved significantly
over time. The term was introduced initially as a measure of pleasure or happiness as part of the theory
of utilitarianism by moral philosophers such as Jeremy WHAT IS A TIME SERIES?

A time series is a collection of observations of well-defined data items obtained through repeated
measurements over time. For example, measuring the value of retail sales each month of the year would
comprise a time series. This is because sales revenue is well defined, and consistently measured at
equally spaced intervals. Data collected irregularly or only once are not time series.

An observed time series can be decomposed into three components: the trend (long term direction), the
seasonal (systematic, calendar related movements) and the irregular (unsystematic, short term
fluctuations).Bentham and John Stuart Mill.

Time series can be classified into two different types: stock and flow.

A stock series is a measure of certain attributes at a point in time and can be thought of as “stocktakes”.
For example, the Monthly Labour Force Survey is a stock measure because it takes stock of whether a
person was employed in the reference week.
Flow series are series which are a measure of activity over a given period. For example, surveys of Retail
Trade activity. Manufacturing is also a flow measure because a certain amount is produced each day, and
then these amounts are summed to give a total value for production for a given reporting period.

The main difference between a stock and a flow series is that flow series can contain effects related to
the calendar (trading day effects). Both types of series can still be seasonally adjusted using the same
seasonal adjustment process.

WHAT ARE SEASONAL EFFECTS?

A seasonal effect is a systematic and calendar related effect. Some examples include the sharp escalation
in most Retail series which occurs around December in response to the Christmas period, or an increase
in water consumption in summer due to warmer weather. Other seasonal effects include trading day
effects (the number of working or trading days in a given month differs from year to year which will
impact upon the level of activity in that month) and moving holiday (the timing of holidays such as Easter
varies, so the effects of the holiday will be experienced in different periods each year).

WHAT IS SEASONAL ADJUSTMENT AND WHY DO WE NEED IT?

Seasonal adjustment is the process of estimating and then removing from a time series influences that
are systematic and calendar related. Observed data needs to be seasonally adjusted as seasonal effects
can conceal both the true underlying movement in the series, as well as certain non-seasonal
characteristics which may be of interest to analysts.