Applied numeracy in business

Lecturer: Associate Professor Nguyen

Thi Khanh Chi
[email protected] 0989989284
Faculty of Business and Administration
Foreign Trade University
Copyright ©2009 Cengage Learning
 Points to highlight
1/ Define the nature of Statistics /
Answer the key question: “What is
statistics?”

2/ Key concepts in statistics

•Descriptive statistics vs Inferential
Statistics
•Population vs Sample
•Qualitative vs Quantitative Variables
•Scale of measurements

3/ Data analysis process 2

Copyright © 2009 Cengage Learning
 What is Statistics?

“Statistics is a way to get

information from data”
Statistics

Data Information

Statistics is a tool for creating new

understanding from a set of numbers.

Definitions: Oxford English Dictio

Copyright © 2009 Cengage Learning 1.3
Copyright © 2009 Cengage Learning
 I. What is statistics?
1. Why study statistics?
• Being informed

Example: According to a survey on shopping

online while at work conducted in early
November, 2005 – 42% of the men and 32% of
the women in the sample were shopping
online at work.

Questions:
• What information to note?
• How to generate and extract this
information? 5
Copyright © 2009 Cengage Learning
 I. What is statistics?
1. Why study statistics?
• Being informed
Your ability to be informed thoroughly
Extract information from tables, charts, and
graphs
Follow numerical arguments

Understand the basics of how data should be

gathered, summarized and analyzed to draw
statistical conclusions

6
Copyright © 2009 Cengage Learning
 I. What is statistics?
1. Why study statistics?
• Making informed judgments
Example:
How should you select an online seller in
Ebay based on their feedback scores and
detailed ratings?
If you know the rate of being unemployed of
new graduate students of a particular
major, will you choose that major?
Questions:
• What information to note?
• Make your own judgments based on the
available information? 7
Copyright © 2009 Cengage Learning
 I. What is statistics?
1. Why study statistics?
• Making informed Judgments
Your ability to make informed judgments
Decide whether existing information is adequate or
whether additional information is required
If necessary, collect more information in a
reasonable and thoughtful way
Summarize the available data in a useful and
informative manner
Analyze the available data

Draw conclusion, make decision, and assess the risk

of an incorrect information 8
Copyright © 2009 Cengage Learning
 I. What is statistics?

1. Why study statistics?

• Evaluating Decisions that Affect
your Life
Example:
University financial aid offices survey
students on the cost of going to school
and collect data on family income,
savings, and expenses. These data are
used to set criteria for deciding who
receives financial aids.
Questions:
• Are the estimates they use accurate?
9
Copyright © 2009 Cengage Learning
 I. What is statistics?
1. Why study statistics?
• Evaluating Decisions that Affect
your life
Your ability to Evaluate decisions that
Affect your life
Understand statistical methods used to make
decisions that affect your life
Be able to evaluate whether such important
decisions are being made in a reasonable way

10
Copyright © 2009 Cengage Learning
 I. What is statistics?
2. Understand the nature of
probabilities & statistics
interest rates, population, stock market
prices, unemployment rate…

- In a very general way:

Statistics numerical information

11
Copyright © 2009 Cengage Learning
 I. What is statistics?

- Furthermore:

Statistics Statistical methods

- Collect
- describe
- summarize
- present
- analyze
12
Copyright © 2009 Cengage Learning
 II/ Key concepts in statistics
1/ Elementary units vs The Frame
 Elementary units
 The persons or objects that have
characteristics of interest to statisticians

 The frame
 A complete listing of all elementary units
relevant to a statistical investigation

13
Copyright © 2009 Cengage Learning
 II/ Key concepts in statistics
2/ Variables and Data
 Variables
 Characteristics of interest of elementary
units

 Data
A single observation about a specified
characteristic of interest is called a datum.
 Any collection of observations about one or
more characteristics of interest, for one or
more elementary units, is called a data set.
 A data set may be univariate, bivariate,
multivariate 14
Copyright © 2009 Cengage Learning
 II/ Key concepts in statistics
3/ Population vs Sample
 Population
 is the WHOLE group of all possible
observations about a specified characteristic
of interest.
 A descriptive measure of a population is
called a parameter

 Sample
 is a subset of data drawn from the
population.
 A descriptive measure of a sample is called a
statistic 15
Copyright © 2009 Cengage Learning
 3/Population vs. Sample

Population Sample

a b cd b c
ef gh i jk l m n gi n
o p q rs t u v w o r u
x y z y

16
Copyright © 2009 Cengage Learning
 Một chính trị gia đang trong chiến dịch
tranh cử chức thị trưởng một thành phố
có 25000 cử tri tiến hành một cuộc
điều tra chọn mẫu. Kết quả có 48% trong
số 200 người được hỏi trả lời sẽ bầu
cho ông ta. Hãy xác định:
• Tổng thể thống kê
• Mẫu

17

Copyright © 2009 Cengage Learning

 4/ Parameter vs statistic
Parameter
— A descriptive measure of a
population.

Statistic
— A descriptive measure of a sample.

Copyright © 2009 Cengage Learning 1.18

 Population Sample

Subset

Statistic
Parameter
Populations have Parameters,
Samples have Statistics.

Copyright © 2009 Cengage Learning 1.19

5/Descriptive statistics and Inferential statistics

Statistics

Descriptive Statistics Inferential Statistics

Copyright © 2009 Cengage Learning 20

 Descriptive Statistics
Descriptive statistics deals with methods
of organizing, summarizing, and presenting
data in a convenient and informative way.

One form of descriptive statistics uses

graphical techniques.

Copyright © 2009 Cengage Learning 1.21

 Descriptive Statistics
Another form of descriptive statistics
uses numerical techniques to summarize
data.

The mean and median are popular numerical

techniques to describe the location of the
data.

The range, variance, and standard

deviation measure the variability of the
data

Copyright © 2009 Cengage Learning 1.22

 Descriptive Statistics

- Collect data
e.g., Survey, Observation,
Experiments

- Present data
e.g., Charts and graphs

- Characterize data x i

e.g., Calculate mean = n

23
Copyright © 2009 Cengage Learning
 Inferential Statistics
• Procedures used to draw conclusions or
inferences about the characteristics of
a population from information obtained
from the sample.
• Making estimates, testing hypothesis…
• Used when we can not enumerate the
whole population

24
Copyright © 2009 Cengage Learning
 Inferential Statistics

Population parameters
Sample statistics (unknown, but can be
(known) estimated from sample
Inference evidence

Sample Population

25
Copyright © 2009 Cengage Learning
 Inferential Statistics

Drawing conclusions and/or making decisions

concerning a population based on sample results.
• Estimation
–e.g., Estimate the
population mean weight using
the sample mean weight
• Hypothesis Testing
–e.g., Use sample evidence
to test the claim that the
population mean weight is
120 pounds
26
Copyright © 2009 Cengage Learning
 Statistical Inference
Statistical inference is the process of
making an estimate, prediction, or
decision about a population based on a
sample.
Population

Sample

Inference

Statistic
Parameter

What can we infer about a Population’s Parameters

based on a Sample’s Statistics?
Copyright © 2009 Cengage Learning 1.27
 6/ Quantitative and qualitative variable

Variables
Variables can
can be
be classified
classified as
as being
being qualitative
qualitative
or
or quantitative.
quantitative.

Depends
Depends onon whether
whether thethe variables
variables are
are qualitative
qualitative or
or
quantitative,
quantitative, we
we choose
choose the
the most
most
appropriate
appropriate statistical
statistical methods
methods

In
In general,
general, there
there are
are more
more statistical
statistical analysis
analysis for
for
quantitative
quantitative variables.
variables.
28
Copyright © 2009 Cengage Learning
 Qualitative or Quantitative variable?

Marital Status
Qualitative
Gender

Height

Ages Quantitative
Student Evaluation
Grades 29
Copyright © 2009 Cengage Learning
 Qualitative Variable

 A variable that is normally described

in words, labels or names rather than
numerically
 Often be referred to as categorical
data
 Nominal or ordinal scale of measurement
will be applied to summarize this kind
of variable
 Qualitative variables can, in turn, be
binomial or multinomial
30
Copyright © 2009 Cengage Learning
 Examples

• Gender:
1. Male 2. Female
• Eye colors:
1.Brown 2.Black 3.Blue
4.Green
• Marital status:
1. Single
2. Married
3. Divorced
4. Widowed
Copyright © 2009 Cengage Learning 31
 Quantitative Variable
 Quantitative
 Quantitative variable
variable is
is aa variable
variable
that
that is
is normally
normally expressed
expressed numerically.
numerically.
It
It indicates
indicates how
how many
many or
or how
how much:
much:

There are two types of quantitative variable:

Discrete quantitative Continuous quantitative
variable: variable:
- integer numbers - decimal numbers,
- can be measured - can not be measured
precisely. precisely
- Only a finite number of - An infinite number of
values is possible. values is possible.
-Obtained when -Obtained when
measuring how many. measuring how much 32
Copyright © 2009 Cengage Learning
 Quantitative Variables

E.g.
(i) The number of students in a class
(ii)The number of correct answers in a test
(iii)People’s height, weight; students’ GPA

33
Copyright © 2009 Cengage Learning
 4/ Scales of Measurement

 Scales
 Scales of
of measurement
measurement include:
include:
Nominal Interval

Ordinal Ratio

The
The scale
scale determines
determines thethe amount
amount of
of information
information
contained
contained in
in the
the data.
data.

The
The scale
scale indicates
indicates the
the data
data summarization
summarization and
and
statistical
statistical analyses
analyses that
that are
are most
most appropriate.
appropriate. 34
Copyright © 2009 Cengage Learning
 Level of measurements

Highest Level

Measurements Complete Analysis

Ratio/Interval Scale

Rankings Higher Level

Ordered Categories Ordinal Scale Mid-level Analysis

Categorical Codes ID
Numbers
Category Names
Nominal Scale Lowest Level
Basic Analysis

35
Copyright © 2009 Cengage Learning
 Scales of Measurement
Nominal

Data
Data are
are labels
labels or
or names
names used
used to
to identify
identify aa
characteristic
characteristic of
of the
the elementary
elementary units.
units.

There
There is
is no
no relative
relative order
order or
or rank
rank between
between these
these
data
data categories
categories

Numeric
Numeric codes
codes are
are assigned
assigned for
for each
each data
data category.
category.
36
Copyright © 2009 Cengage Learning
 Scales of Measurement
Nominal

It
It never
never makes
makes sense
sense to
to add,
add, subtract,
subtract, multiply,
multiply,
divide,
divide, rank,
rank, average
average or
or manipulate
manipulate

Used
Used to
to count
count frequency
frequency of
of variables
variables outcomes
outcomes

E.g:
E.g: Numbers
Numbers assigned
assigned for
for aa person’s
person’s gender
gender
Or
Or numbers
numbers assigned
assigned for
for aa person’s
person’s marital
marital status
status
37
Copyright © 2009 Cengage Learning
 Example

Students
Students of
of aa university
university are
are classified
classified by
by
the
the
school
school in
in which
which they
they are
are enrolled
enrolled such
such as
as
Business,
Business, Humanities,
Humanities, Education,
Education, and
and so
so on.
on.

AA numeric
numeric code
code could
could be
be used
used for
for
the
the school
school variable
variable (e.g.
(e.g. 11 denotes
denotes
Business,
Business,
22 denotes
denotes Humanities,
Humanities, 33 denotes
denotes Education,
Education,
and
and
so
so on).
on).

38
Copyright © 2009 Cengage Learning
 Scales of Measurement
Ordinal

The
The data
data have
have the
the properties
properties of
of nominal
nominal data
data and
and
the
the order
order or
or rank
rank of
of the
the data
data is
is meaningful.
meaningful.

Numeric
Numeric codes
codes may
may be
be used
used which
which do
do indicate
indicate the
the
rank
rank // order
order of
of data
data categories.
categories.

The
The gap
gap between
between numbers
numbers or
or units
units on
on this
this scale
scale
doesn’t
doesn’t mean
mean equal
equal magnitude
magnitude between
between variable
variable
outcomes
outcomes 39
Copyright © 2009 Cengage Learning
 Thu nhập hàng tháng
1. <3trđ 2. 3-5 trđ 3. >5trđ
Xếp hạng loại nhạc yêu thích nhất
1. Pop 2. Rock 3. Hiphop 4. loại khác

Copyright © 2009 Cengage Learning

 Scales of Measurement
Ordinal

Just
Just like
like nominal
nominal data,
data, itit never
never makes
makes sense
sense to
to
add,
add, subtract,
subtract, multiply,
multiply, divide,
divide, rank,
rank, average
average
or
or manipulate
manipulate

41
Copyright © 2009 Cengage Learning
 Scales of Measurement
Interval

Have
Have the
the properties
properties of
of ordinal
ordinal data,
data, and
and
the
the intervals
intervals between
between numbers
numbers oror units
units on
on the
the scale
scale
are
are equal
equal over
over all
all level
level of
of the
the scale
scale

Interval
Interval scales
scales provide
provide more
more quantitative
quantitative
information
information
There
There is
is no
no zero
zero value
value that
that indicates
indicates
that
that nothing
nothing exists
exists for
for the
the variable
variable atat the
the zero
zero point.
point. 42
Copyright © 2009 Cengage Learning
 Scales of Measurement
Interval

Addition
Addition and
and subtraction
subtraction are
are permissible
permissible but
but
multiplication
multiplication and
and division
division continue
continue to
to make
make no
no
sense
sense

Example: Melissa has an SAT score of 1205,

while Kevin has an SAT score of 1090. Melissa
scored 115 points more than Kevin.

43
Copyright © 2009 Cengage Learning
 Scales of Measurement
Ratio

Have
Have all
all the
the properties
properties of
of interval
interval data
data
and
and the
the ratio
ratio of
of two
two values
values is
is meaningful
meaningful..

This
This scale
scale must
must contain
contain aa zero
zero value
value that
that indicates
indicates
that
that nothing
nothing exists
exists for
for the
the variable
variable at
at the
the zero
zero point.
point.

Variables
Variables such
such as
as distance,
distance, height,
height, weight,
weight, and
and time
time
use
use the
the ratio
ratio scale.
scale. 44
Copyright © 2009 Cengage Learning
 Scales of Measurement
Ratio

All
All types
types of
of arithmetic
arithmetic operations,
operations, even
even
multiplication
multiplication and
and division
division can
can be
be performed
performed with
with
such
such data
data

45
Copyright © 2009 Cengage Learning
 • Sinh viên A tháng 7/08 chi tiêu: 1.640.000 đ
• Sinh viên B tháng 7/08 chi tiêu: 3.280.000 đ
Qui đổi ra USD: (tỷ giá 1 USD = 16.400 VND)
 Sinh viên A tháng 7/08 chi tiêu: 100 USD
Sinh viên B tháng 7/08 chi tiêu: 200 USD
Nếu SV A bị mất cắp ngân sách sẽ bằng 0

Copyright © 2009 Cengage Learning

 Example
Here are some questions in a brief survey:
1/ Gender
☐ Male ☐ Female
2/ Your major
☐ Business administration ☐ Banking and
Finance
☐ International Commerce ☐ Commercial Law
3/ Your monthly expenditure:
☐ < 1000K VND ☐ 1000K – 2000K
VND
☐ 2000K – 5000K VND ☐ >= 5000K VND
4/ With the scores from 1-10, can you rate the
services provided by FTU corner
Your score: ….
47
Copyright © 2009 Cengage Learning
 5/ Do you agree that having two canteens is
not necessary in FTU
☐ ☐ ☐ ☐ ☐
Strongly Agree Neutral Disagree Strongly
agree Disagree

6/ Your average expenses each time you visit

a canteen in FTU: ……………

Requirements:
1/ Answer the questions on your own
2/ Identify the scale of measurement used
for each question? 48
Copyright © 2009 Cengage Learning
 III/ Data Analysis Process

Step 1: Understand the Understand the goal of the research

nature of the problem Identify the questions to answer

 Decide what information needed to

answer questions
Step 2: Decide what to
measure and how to  Define the variables to study

measure  Develop appropriate methods for

determining variables’ values

49
Copyright © 2009 Cengage Learning
 • Reliability
• Validity
–Data collection

Copyright © 2009 Cengage Learning

 III/ Data Analysis Process

Decide whether using existing data

or collect new data
If existing data be used, understand
how they were collected and for
what purpose
If new data are required, a careful
plan of collecting data must be
designed
Step 3: Data collection
Statistical Methods:
Finding existing data: from pri
Internet
Generating new data: observa
51
Copyright © 2009 Cengage Learning
experiment, survey
 III/ Data Analysis Process

After being collected, data should be

preliminarily analyzed
Summarizing data graphically and
numerically

Step 4: Data summarization

Statistical Methods:
Presenting data: Tables, Chart
and Graphs
Presenting data: descriptive
52 st
Copyright © 2009 Cengage Learning
 III/ Data Analysis Process

Select and apply appropriate

inferential statistical methods to
analyze data

Step 5: Formal data analysis

Statistical Methods:
Estimation, Hypothesis testing,
Variance analysis, Regression and
Correlation, Time series and Forecasting,
Index numbers…

53
Copyright © 2009 Cengage Learning
 III/ Data Analysis Process

Several questions should be addressed

What conclusion can be drawn from the
Step 6: Interpretation of analysis?
results How do the results inform us about the
research problem or question?
How the results guide future research?

54
Copyright © 2009 Cengage Learning
 • Nghiên cứu cách sử dụng thời gian nhàn
rỗi của sinh viên trường Đại học ngoại
thương

• Investigate the impact of climate

change on consumption behaviors of Z
generation in Vietnam

55

Copyright © 2009 Cengage Learning

 Nghiên cứu cách sử dụng thời gian nhàn rỗi của
sinh viên trường Đại học ngoại thương

• Thông tin cá nhân (tên, giới tính, năm

sinh, khóa, lớp…)
• Thu nhập, nguồn thu nhập
• Sở thích
• Lượng thời gian nhàn rỗi
• Cách sử dụng thời gian nhàn rỗi
•…

56

Copyright © 2009 Cengage Learning

 • Investigate the impact of climate
change (CC) on consumption behavior
(CB) of Z generation in Vietnam
–What is CC?
–How does CC affect CB
–Design questionnaires

Copyright © 2009 Cengage Learning

 1. Lượng thời gian nhàn rỗi:
•A. Under 2 tiếng/ngày
•B. 2-4 tiếng/ng
•C. 4-6 tiếng/ng
•D. bove 6 hours
2. Cách sử dụng thời gian nhàn rỗi
A.Giải trí (....)
B.Đọc sách
C.Thể thao
D.Đi làm thêm
E.Others
Copyright © 2009 Cengage Learning
Copyright © 2009 Cengage Learning