Session 7, 8

CRT 1006
BUSINESS STATISTICS
Review
Frequency Distribution
Considers one variable at a time
Produces a table of frequency counts, percentages and
cumulative percentages for all values associated with
that variable
Statistics associated with F.D.
Measures of Location
Measures of central tendency mean, median, mode
Measures of variability range, interquartile range,
standard deviation, variance
Measures of shape
Skewness
Kurtosis

Examples of Univariate
How many users of the brand may be characterized as
brand-loyal?
What percentage of the market consists of heavy users,
medium users, light users and non-users?
Examples of Bivariate
How many brand-loyal users are male?
Is product use (measured in terms of heavy users,
medium users, light users and nonusers) related to
interest in outdoor activities (high, medium and low)?
Frequency Distribution
Univariate, Bivariate and Multivariate Distributions
Univariate
Distributions involving only one variable
Bivariate
Distributions involving two variables
Multivariate
Distributions involving more than two variables
Bivariate Distribution & Correlation Analysis
Two variables
Known variable independent variable
Variable we are trying to predict dependent variable
Correlation
Statistical tool which studies the relationship between
two variables
Two variables are said to be correlated if the change in
one variable results in a corresponding change in the
other variable

Types of correlation
Positive and negative correlation
Linear and non-linear correlation
Correlation and Causation
Gives an idea about the degree and direction of
relationship between the two variables
Fails to reflect on the causation


Studying correlation
1. Scatter Diagram method
2. Karl Pearsons coefficient of correlation

S 4 Q1
An instructor is interested in finding out how the number of students
absent on a given day is related to the mean temperature that day.
A random sample of 10 days was used for the study. The following
data indicate the number of students absent and the mean
temperature for each day.
a) State the dependent variable (Y) and the independent variable
(X)
b) Draw a scatter diagram of the data
c) Does the relationship appear to be linear or curvilinear?
d) How can you explain the diagram?
e) Repeat the exercise using SPSS to draw the scatter diagram

ABS 8 7 5 4 2 3 5 6 8 9
TEMP 10 20 25 30 40 45 50 55 59 60
S4 Q2
A professor is trying to show his students the importance of quizzes even though 90%
of the final grade is determined by exams. He believes that the higher the quiz
grade, the higher the final grade. A random sample of 15 students in his class was
selected with the data given below:
a) State the dependent variable (Y) and the independent variable (X)
b) Draw a scatter diagram of these data
c) Does the professors belief appear to be justified? Explain your reasoning.
d) Repeat using SPSS.

Quiz
Ave
rage
59 92 72 90 95 87 89 77 76 65 97 42 94 62 91
Fina
l
aver
age
65 84 77 80 77 81 80 84 80 69 83 40 78 65 90