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Notes Module 1

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6 views

Notes Module 1

Uploaded by

Vatsalya Bhardwaj
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Module 1

BASIC DEFINITIONS
On-Ramp…

On your way to MBA 643

[email protected]

1
Outline
Important statistical terms

Difference between variables, measurement, and data.

Levels of measurement

2
Statistics
The gathering, organizing, summarizing, analyzing, interpreting,
and presenting data
The science of numbers
Branch of mathematics

The recording of numerical facts and figures

Measurement(s) on characteristics associated with objects included


in a sample

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Use of numbers
•A survey of 2,000 adults reported that 60%
thought that an online advertisement of 20
seconds was an acceptable length before seeing
free content.

•A survey of 1,000 adults showed that 40% of


them would be willing to drive 10 to 15 km to save
5 cents on a litre of gas.
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Data Analytics
The Changing Face of
Statistics
 Use statistical methods to analyze and explore data to
uncover unforeseen relationships.
 Use management science methods to develop
optimization models that impact an organization’s
strategy, planning, and operations.
 Use information systems’ methods to collect and
process data sets of all sizes, including very large
data sets that would otherwise be hard to
examine efficiently.
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Two Different
Branches of Statistics
The branch of mathematics that transforms data into
useful information for decision makers.

Descriptive Statistics Inferential Statistics

Collecting, summarizing, Using data collected from a


presenting and analyzing data small group to draw conclusions
about a larger group

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Descriptive vs.
Inferential
• Descriptive Statistics:
– Using data gathered on a group to describe or reach
conclusions about that same group and that group alone:
The average for your statistics class.

• Inferential Statistics:
– Using sample data to reach conclusions or make general
statement(s) about the population from which the sample
was taken: The average litres per 100 km based on four
cars selected from a parking lot.
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Population vs.
Sample
POPULATION: Quebec adult population

A collection of persons, objects, or items of interest.


CENSUS: Collect data on all Quebec adult citizens
Data gathered from the whole population for a given
measurement of interest.
SAMPLE: Collect data on a selected group of Quebec adults
A sample is a portion of the whole and, if properly
taken, is representative of the whole.
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Variable, Data
VARIABLE
and Statistics
A variable is a characteristic of any entity being studied
that can take on different values.
Weights
DATA
A measurement occurs when a standard process is used to
assign numbers to particular attributes or characteristics of
a variable. Once such measurements are recorded and
stored, they can be denoted as “data.” 50 kilos
STATISTICS
The methods that help transform data into useful
information for decision makers. Average weight 9
Parameter vs
Statistic
PARAMETER:
A descriptive measure of the population with
respect to some characteristic
μ σ π
STATISTIC:
A descriptive measure of the population with
respect to some characteristic using sample data

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Characteristics

• Each member of the population may have several


characteristics associated with it.
• Cars in a parking lot may have characteristics such color, speed,
design, manufacturer, fuel consumption rates, price,
performance ranking by AAA, etc
• The various characteristics are measured using nominal,
ordinal, interval or ratio measures.
• The type of statistical analysis that is appropriate depends on
the level of data measurement used.

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Types of Data
• Quantitative or Numerical : Data on which numeric
and arithmetic operations, such as addition,
subtraction, multiplication, and division, can be
performed
• Categorical data: Data on which arithmetic
operations cannot be performed
• Cross-sectional data: Data collected from several
entities at the same, or approximately the same,
point in time
• Time series data: Data collected over several time
periods 12
Types of
variables
Variables

Categorical Numerical

Examples:
 Marital Status
 Political Party Discrete Continuous
 Eye Color
(Defined categories) Examples: Examples:
 Number of Children  Weight
 Defects per hour  Voltage
(Counted items) (Measured items) 13
Identify the
type of variables
a) Number of telephones per household ND

b) Length of longest long-distance call made per month N C


c) Whether there is a high-speed internet connection to the household CAT
d) Amount of time spent shopping in the bookstore N C
e) Academic major CAT
f) Gender CAT

g) Computer literacy: above average, average, below average CAT


h) Temperature in Celsius degrees N C
i) Temperature in Kelvin degrees N C
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Levels of
Measurements
Lower scale
Categorical Nominal scale
Ordinal scale
Numerical
Interval scale
Ratio scale
Higher scale

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Levels for
Categorical
A nominal scale classifies data
into distinct categories in which
no ranking is implied.
Categorical Gender, hair color…

An ordinal scale classifies


data into distinct categories in
which ranking is implied.
Levels of satisfaction
Not satisfied,
Neutral
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Satisfied
Levels for
Numerical
An interval scale is an ordered scale
in which the difference between
measurements is a meaningful quantity
but the measurements do not have a
Numerical
true zero point. Ex: SAT scores, ºCelcius
A ratio scale is an ordered scale in
which the difference between the
measurements is a meaningful quantity
and the measurements have a true zero
point. Ex: Distance, ºKelvin
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Identify the levels
of Measurement
a) Number of telephones per household N DRatio
b) Length of longest long-distance call made per month N C Ratio

c) Whether there is high-speed internet connection to the household Cat Nom


d) Amount of time spent shopping in the bookstore N Ratio
C
e) Academic major Cat Nom

f) Gender Cat Nom


g) Computer literacy: above average, average, below average Cat Ord
h) Temperature in Celsius degrees NC Int
i) Temperature in Kelvin degrees NRatio
C
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Review Test

https://www.youtube.com/watch?v=Dv_cw4plFgo&feature=youtu.be

19

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