Scribd
Upload
32 views22 pages

Introduction To Statistics: Neeta Pathak

This document provides an introduction to statistics. It defines statistics as the science of gathering, analyzing, interpreting, and presenting data. Descriptive statistics are used to describe a group, while inferential statistics are used to make conclusions about a population based on a sample. There are different levels of data measurement - nominal, ordinal, interval, and ratio - and the appropriate statistical methods depend on the level of measurement. Population parameters describe the whole population, while statistics describe samples.

Uploaded by

nikki_ce
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
32 views22 pages

Introduction To Statistics: Neeta Pathak

This document provides an introduction to statistics. It defines statistics as the science of gathering, analyzing, interpreting, and presenting data. Descriptive statistics are used to describe a group, while inferential statistics are used to make conclusions about a population based on a sample. There are different levels of data measurement - nominal, ordinal, interval, and ratio - and the appropriate statistical methods depend on the level of measurement. Population parameters describe the whole population, while statistics describe samples.

Uploaded by

nikki_ce
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
You are on page 1/ 22

Introduction to Statistics

Neeta Pathak

1-1
Learning Objectives

• Define statistics
• Become aware of a wide range of
applications of statistics in business
• Differentiate between descriptive and
inferential statistics
• Classify numbers by level of data and
understand why doing so is important

2
Statistics in Business
• Accounting — auditing and cost estimation
• Economics — regional, national, and international
economic performance
• Finance — investments and portfolio management
• Management — human resources, compensation, and
quality management
• Management Information Systems — performance of
systems which gather, summarize, and disseminate
information to various managerial levels
• Marketing — market analysis and consumer research
• International Business — market and demographic
analysis
3
What is Statistics?

• Science of gathering, analyzing,


interpreting, and presenting data
• Branch of mathematics
• Course of study
• Facts and figures
• Measurement taken on a sample
• Type of distribution being used to analyze
data

4
Population Versus Sample

• Population — the whole


– a collection of persons, objects, or items under
study
• Census — gathering data from the entire
population
• Sample — a portion of the whole
– a subset of the population

5
Population

6
Population and Census Data
Identifier Color MPG

RD1 Red 12
RD2 Red 10
RD3 Red 13
RD4 Red 10
RD5 Red 13
BL1 Blue 27
BL2 Blue 24
GR1 Green 35
GR2 Green 35
GY1 Gray 15
GY2 Gray 18
GY3 Gray 17

7
Sample and Sample Data
Identifier Color MPG

RD2 Red 10

RD5 Red 13

GR1 Green 35

GY2 Gray 18

8
Descriptive vs. Inferential Statistics

• Descriptive Statistics — using data


gathered on a group to describe or reach
conclusions about that same group only

• Inferential Statistics — using sample data


to reach conclusions about the population
from which the sample was taken

9
Parameter vs. Statistic

• Parameter — descriptive measure of the


population
– Usually represented by Greek letters

• Statistic — descriptive measure of a sample


– Usually represented by Roman letters

10
Symbols for Population Parameters

 denotes population parameter


2
denotes population variance
 denotes population standard deviation

11
Symbols for Sample Statistics

x denotes sample mean


S
2
denotes sample variance
S denotes sample standard deviation

12
Process of Inferential Statistics

Calculate x
to estimate 
Population Sample
 x
(parameter) (statistic)

Select a
random sample
13
Levels of Data Measurement

• Nominal — Lowest level of measurement


• Ordinal
• Interval
• Ratio — Highest level of measurement

14
Nominal Level Data
• Numbers are used to classify or categorize
Example: Employment Classification
– 1 for Educator
– 2 for Construction Worker
– 3 for Manufacturing Worker
Example: Ethnicity
– 1 for African-American
– 2 for Anglo-American
– 3 for Hispanic-American

15
Ordinal Level Data
• Numbers are used to indicate rank or order
– Relative magnitude of numbers is meaningful
– Differences between numbers are not comparable

Example: Ranking productivity of employees


Example: Taste test ranking of three brands of soft drink
Example: Position within an organization
– 1 for President
– 2 for Vice President
– 3 for Plant Manager
– 4 for Department Supervisor
– 5 for Employee

16
Ordinal Data

Faculty and staff should receive preferential


treatment for parking space.

Strongly Agree Neutral Disagree Strongly


Agree Disagree

1 2 3 4 5

17
Interval Level Data

• Distances between consecutive integers are


equal
– Relative magnitude of numbers is meaningful
– Differences between numbers are comparable
– Location of origin, zero, is arbitrary
– Vertical intercept of unit of measure transform
function is not zero
Example: Fahrenheit Temperature
Example: Calendar Time
Example: Monetary Utility
18
Ratio Level Data
• Highest level of measurement
– Relative magnitude of numbers is meaningful
– Differences between numbers are comparable
– Location of origin, zero, is absolute (natural)
– Vertical intercept of unit of measure transform
function is zero
Examples: Height, Weight, and Volume
Example: Monetary Variables, such as Profit and
Loss, Revenues, and Expenses
Example: Financial ratios, such as P/E Ratio,
Inventory Turnover, and Quick Ratio.

19
Usage Potential of Various
Levels of Data
Ratio
Interval
Ordinal

Nominal

20
Data Level, Operations,
and Statistical Methods
Statistical
Data Level Meaningful Operations
Methods

Nominal Classifying and Counting Nonparametric

Ordinal All of the above plus Ranking Nonparametric

Interval All of the above plus Addition, Parametric


Subtraction, Multiplication, and
Division

Ratio All of the above Parametric

21
22

You might also like