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Chapter 01

Bussiness statistic

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26 views12 pages

Chapter 01

Bussiness statistic

Uploaded by

mrtwentysevennn
Copyright
© © All Rights Reserved
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
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What is Statistics

McGraw-Hill/Irwin ©The McGraw-Hill Companies, Inc. 2008


GOALS

 Understand why we study statistics.


 Explain what is meant by descriptive
statistics and inferential statistics.
 Distinguish between a qualitative variable
and a quantitative variable.
 Describe how a discrete variable is different
from a continuous variable.
 Distinguish among the nominal, ordinal,
interval, and ratio levels of measurement.

2
What is Meant by Statistics?

Statistics is the science of


collecting, organizing, presenting,
analyzing, and interpreting
numerical data to assist in
making more effective decisions.

3
Who Uses Statistics?

Statistical techniques are used


extensively by marketing,
accounting, quality control,
consumers, professional sports
people, hospital administrators,
educators, politicians, physicians,
etc...

4
Types of Statistics – Descriptive
Statistics

Descriptive Statistics - methods of organizing,


summarizing, and presenting data in an
informative way.
EXAMPLE 1: A Gallup poll found that 49% of the people in a survey knew the name of
the first book of the Bible. The statistic 49 describes the number out of every 100
persons who knew the answer.

EXAMPLE 2: According to Consumer Reports, General Electric washing machine


owners reported 9 problems per 100 machines during 2001. The statistic 9
describes the number of problems out of every 100 machines.

Inferential Statistics: A decision, estimate,


prediction, or generalization about a
population, based on a sample.

5
Population versus Sample

A population is a collection of all possible individuals, objects, or


measurements of interest.

A sample is a portion, or part, of the population of interest

6
Types of Variables

A. Qualitative or Attribute variable - the


characteristic being studied is nonnumeric.
EXAMPLES: Gender, religious affiliation, type of automobile
owned, state of birth, eye color are examples.

B. Quantitative variable - information is reported


numerically.
EXAMPLES: balance in your checking account, minutes
remaining in class, or number of children in a family.

7
Quantitative Variables - Classifications

Quantitative variables can be classified as either discrete


or continuous.

A. Discrete variables: can only assume certain values


and there are usually “gaps” between values.
EXAMPLE: the number of bedrooms in a house, or the number of hammers sold at the local
Home Depot (1,2,3,…,etc).

B. Continuous variable can assume any value within a


specified range.
EXAMPLE: The pressure in a tire, the weight of a pork chop, or the height of students in a
class.

8
Summary of Types of Variables

9
Four Levels of Measurement

Nominal level - data that is Interval level - similar to the ordinal


classified into categories and level, with the additional
cannot be arranged in any property that meaningful
particular order. amounts of differences between
EXAMPLES: eye color, gender, data values can be determined.
religious affiliation. There is no natural zero point.
EXAMPLE: Temperature on the
Fahrenheit scale.

Ordinal level – involves data


arranged in some order, but the Ratio level - the interval level with
differences between data an inherent zero starting point.
values cannot be determined or Differences and ratios are
are meaningless. meaningful for this level of
EXAMPLE: During a taste test of measurement.
4 soft drinks, Mellow Yellow EXAMPLES: Monthly income
was ranked number 1, Sprite of surgeons, or distance
number 2, Seven-up number traveled by manufacturer’s
3, and Orange Crush number representatives per month.
4.

10
Summary of the Characteristics for
Levels of Measurement

11
End of Chapter 1

12

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