BUSINESS STATISTICS

Module 1

Presented by
Dr.Analjyoti Basu
Assistant Professor
School of Commerce, Presidency University

Contact No: +91-8238976474/9434679226

Email:[email protected]/
[email protected]
MODULE 1:INTRODUCTION TO
STATISTICS
Types of statistical data

QUALITATIVE & QUANTITATIVE DATA

UNIVARIATE, BIVARIATE AND

MULTIVARIATE DATA

TIME SERIES AND CROSS-SECTIONAL

DATA
Types of statistical data
TYPES
QUALITATIVE AND
QUANTITAVE DATA

NOMINAL QUALITATIVE TIME-SERIES AND

CROSS-SECTIONAL
ORDINAL QUALITATIVE

UNIVARIATE, BIVARIATE
AND MULTIVARIATE
DISCRETE QUANTITAVE
DATA

CONTINIOUS QUANTITAVE
Types of statistical data-
meanings(Quality & quantity)

QUANTITATIVE
Involving or relating to considerations of amount or size. Capable of being measured.
These are expressed in meaningful numbers that represents quantity of some
characteristics possessed by an element. So, the QUANTITATIVE data indicate how
much, how many.
For example- The quantity of grains exported in a single year(in Metric tonnes).

QUALITATIVE
Qualitative means relating to the nature or standard of something, rather than to its
quantity. involving or relating to distinctions based on quality or qualities. Thus
Qualitative data provide only lebels or names for categories of elements under
study. The data could be identified by non-numeric description or numeric codes.
For example- The quality of Indian Intellectual resource is being praised world wide.
Types of statistical data-
meanings(Quality vs quantity)
Types of statistical data-
meanings(Quality vs quantity)
Types of statistical data-
meanings(nominal & ordinal)
NOMINAL
Nominal data is data that can be labeled or classified but cannot be ordered in a
meaningful way. So it involves different categorization but not meaningful ordering.
For example- Mode of transportation, you may have the categories of car, bus, train,
tram or bicycle.
Mode of transaction by Indian’s- Cash, Credit cards, Debit cards, E-Payment.

ORDINAL
ordinal data are the type of data in which the values follow a natural order. One of the
most notable features of ordinal data is that the differences between the data values
cannot be determined or are meaningless. Generally, the data categories lack the
width representing the equal increments of the underlying attribute.
For example- Preferred ranking of transportation, you may have in the categories of car,
bus, train, tram or bicycle in ranks.
Preferred ranking of transaction by Indian’s- Cash, Credit cards, Debit cards, E-
Payment in ranks.
Ordinal data is data that can be labelled ,classified, ordered and ranked.
Types of statistical data-
meanings(nominal vs ordinal)
ORDINAL SCALE EXAMPLE
Types of statistical data-
meanings(discrete & continious)
DISCRETE
It constitutes a separate entity that Constitutes of distinct or unconnected elements or non
continuous.
For example-
• Number of shares held by a person could be 5,10,or 15 but not 15.555, 20.05 etc..
• Number of times India was hit by the COVID waves- 1, 2, or 3 but not 1.3,or 2.66 or
1.57 etc.

CONTINIOUS
It can take any value between two numbers, no matter how small. The measure can be any value
on the scale.
For Example-
• People's heights could be any value (within the range of human heights), not just certain
fixed heights.
• The time taken by Ushan Bolt to complete a race.
Types of statistical data-
meanings(discrete vs continious)
Both data types are important for statistical analysis. However, some major
differences need to be noted before drawing any conclusions or making decisions. The
key differences are:

Discrete data is the type of data that has clear spaces between values. Continuous
data is data that falls in a constant sequence.

Discrete data is countable while continuous — measurable.

To accurately represent discrete data, the bar graph is used. Histogram or line
graphs are used to represent continuous data graphically. A diagram of the discrete
function shows a distinct point that remains unconnected. While in a continuous
function graph, the points are connected with an unbroken line.

Discrete data contains distinct or separate values. Continuous data includes any
value within the preferred range.
Types of statistical data-
meanings(discrete vs continious)
 Types of statistical data-qualitative &
quantitative
NOMINAL
Nominal data is data that can be labeled or classified but cannot be ordered in a meaningful way. So it involves
different categorization but not meaningful ordering.
For example-
• Preferred mode of transportation, you may have the categories of car, bus, train, tram or bicycle.
• Preferred mode of transaction by Indian’s- Cash, Credit cards, Debit cards, E-Payment.
QUALITATIVE
Qualitative means relating to the nature or standard of something, rather than to its quantity. involving or
relating to distinctions based on quality or qualities. Thus Qualitative data provide only lebels or names for
categories of elements under study. The data could be identified by non-numeric description or numeric
codes.
For example-
The quality of Indian Intellectual resource is being praised world wide.

OUTPUT: NOMINAL QUALITATIVE………………………????????????

 Types of statistical data-qualitative &
quantitative
ORDINAL
ordinal data are the type of data in which the values follow a natural order. One of the most
notable features of ordinal data is that the differences between the data values cannot be
determined or are meaningless. Generally, the data categories lack the width representing the
equal increments of the underlying attribute.
For example- Preferred ranking of transportation, you may have in the categories of car, bus, train,
tram or bicycle.
Preferred ranking of transaction by Indian’s- Cash, Credit cards, Debit cards, E-Payment.
Ordinal data is data that can be labelled ,classified, ordered and ranked.

QUALITATIVE
Qualitative means relating to the nature or standard of something, rather than to its quantity.
involving or relating to distinctions based on quality or qualities. Thus Qualitative data provide
only lebels or names for categories of elements under study. The data could be identified by
non-numeric description or numeric codes.
For example-
The quality of Indian Intellectual resource is being praised world wide .

OUTPUT: ORDINAL QUALITATIVE………………………..????

 Types of statistical data-qualitative &
quantitative
DISCRETE
It constitutes a separate entity that takes care of distinct or unconnected
elements or non continuous in nature.
For example-
• Number of shares held by a person could be 5,10,or 15 but not 15.555,
20.05 etc..
• Number of times India was hit by the COVID waves- 1, 2, or 3 but not 1.3,or
2.66 or 1.57 etc.

QUANTITATIVE
Involving or relating to considerations of amount or size. Capable of being
measured. These are expressed in meaningful numbers that represents
quantity of some characteristics possessed by an element. So, the
QUANTITATIVE data indicate how much, how many.
For example- The quantity of grains exported in a single year(in Metric tonnes).

OUTPUT: DISCRETE QUANTITATIVE………………….??????

 Types of statistical data-qualitative &
quantitative
CONTINIOUS
It can take any value between two numbers, no matter how small. The measure can be any value on the scale.
For Example-
• People's heights could be any value (within the range of human heights), not just certain fixed heights .
• The time taken by Ushan Bolt to complete a race.
QUANTITATIVE
Involving or relating to considerations of amount or size. Capable of being measured. These are expressed in
meaningful numbers that represents quantity of some characteristics possessed by an element. So, the
QUANTITATIVE data indicate how much, how many.
For example- The quantity of grains exported in a single year(in Metric tonnes).

OUTPUT: CONTINIOUS QUANTITATIVE…………………………???????

Types of statistical data-univariate Data

Univariate is a term commonly used in statistics to describe a type of data which

consists of observations on only a single characteristic or attribute.
EXAMPLE- The salaries of workers in industry.

Univariate analysis is the simplest form of analyzing data. Uni means one, so in
other words the data has only one variable.Univariate data requires to analyze
each variable separately. Data is gathered for the purpose of answering a question.

Like all the other data, univariate data can be visualized using graphs, images or
other analysis tools after the data is measured, collected, reported, and analyzed.
Types of statistical data-univariate data
Types of statistical data-univariate data

Some univariate data consists of numbers (such as the height of 65 inches or the
weight of 100 pounds), while others are nonnumerical (such as eye colors of brown or
blue). Generally, the terms categorical univariate data and numerical univariate data
are used to distinguish between these types.
Categorical univariate data
Categorical univariate data consists of non-numerical observations that may be placed
in categories. It includes labels or names used to identify an attribute of each element.
Categorical univariate data usually use either nominal or ordinal scale of measurement.
Numerical univariate data
Numerical univariate data consists of observations that are numbers. This type of
univariate data can be classified even further into two
subcategories: discrete and continuous. A numerical univariate data is discrete if the
set of all possible values is finite or countably infinite. Discrete univariate data are
usually associated with counting (such as the number of books read by a person). A
numerical univariate data is continuous if the set of all possible values is an interval of
numbers. Continuous univariate data are usually associated with measuring (such as
the weights of people).
Types of statistical data-univariate
data(Examples)

•Incomes of families included in the marketing survey.

•Marks of candidates in a entrance exam.

•Bonds ratings of the companies in an investment.

•Number of rooms in houses of a locality.

•Income of families included in a market survey.

Types of statistical data-Bivariate Data

Data for two variables (usually two types of related data).The data sets that involve
information on two characteristics for each subjects.

Example: Ice cream sales versus the temperature on that day. The two variables are
Ice Cream Sales and Temperature.

(If only one set of data is there, such as just Temperature, it is called "Univariate
Data")

In statistics, bivariate data is data on each of two variables, where each value of one
of the variables is paired with a value of the other variable. Typically it would be of
interest to investigate the possible association between the two variables. The
association can be studied via a tabular or graphical display, or via sample statistics
which might be used for inference.
The Bi-variate data gives rise to the concept of dependent and independent
variables.
Types of statistical data-Bivariate
data(Examples)
Types of statistical data-Bivariate
data(Examples)

•Incomes of families and their savings included in the marketing

survey.

•Marks of candidates and no of hours spend in studying for the

entrance exam.

•Bonds ratings and the bonds price for the companies in an

investment.

•Number of rooms in houses and numbers of people residing in the

locality.
Types of statistical data-MULTIvariate
data
When three or more variables are involved, the data are termed to be multivariate
data.

It encompasses the simultaneous observation and analysis of more than

one outcome. Multivariate data concerns understanding the different aims and
background of each of the different forms of multivariate data, and how they relate
to each other.

The practical application of multivariate statistics to a particular problem may involve

several types of univariate and multivariate analyses in order to understand the
relationships between variables and their relevance to the problem being studied.
Types of statistical data-MULTIvariate
data(Examples)
Types of statistical data-time series
Time series data, also referred to as time-stamped data, is a sequence of data points
indexed in time order. Time-series is data collected at different points in time.

These data points typically consist of successive measurements made from the same
source over a time interval and are used to track change over time.

Time series data is a collection of observations obtained through repeated

measurements over time. Plot the points on a graph, and one of your axes would
always be time.

Time series data is everywhere, since time is a constituent of everything that is

observable.
Examples of time series analysis:
Weekly weather data
Temperature Readings
Health monitoring
Stock exchange
Types of statistical data-time series
Types of statistical data-cross-sectional

A set of data values observed at a fixed point in time is Cross-sectional data.

Cross-sectional data are the result of a data collection, carried out at a single point
in time.

With cross-sectional data, the main interest doesn’t lies in the change of data over
time, but in the current time.

Cross-sectional data refer to observations of many different individuals (subjects,

objects) at a given time, each observation belonging to a different individual. A
simple example of cross-sectional data is the gross annual income for each of 1000
randomly chosen households in Bengaluru for the year 2020.
Types of statistical data-cross-
sectional(examples)

The data gives indication of Time-Series

and Cross-sectional at the same time.
Types of measurement scales-concept
To perform statistical analysis of data, it is important to first understand variables
and what should be measured using these variables. There are different levels of
measurement in statistics and data measured using them can be broadly classified
into qualitative and quantitative data.
First, what a variable is. A quantity whose value changes across the population
and can be measured is called variable. For instance, consider a sample of employed
individuals. The variables for this set of the population can be industry, location,
gender, age, skills, job-type, etc The value of the variables will differ with each
employee.
For example, it is practically impossible to calculate the average hourly production-
output rate of a worker. So, a sample audience is randomly selected such it
represents the larger population appropriately. Then the average hourly rate of this
sample audience is calculated. Using statistical tests, one can conclude the average
hourly rate of a larger population.
The level of measurement of a variable decides the statistical test type to be used.
The mathematical nature of a variable or in other words, how a variable is measured
is considered as the level of measurement.
Types of measurement scales-concept(contd..)
Nominal, Ordinal, Interval, and Ratio are defined as the four fundamental levels of
measurement scales that are used to capture data in the form of surveys and questionnaires,
each being a multiple choice question.

Each scale is an incremental level of measurement, meaning, each scale fulfills the function
of the previous scale, and all survey question scales such as Likert, Semantic
Differential, Dichotomous, etc, are the derivation of this these 4 fundamental levels of
variable measurement.

Nominal scale is a naming scale, where variables are simply “named” or labeled, with no
specific order. Ordinal scale has all its variables in a specific order, beyond just naming them.
Interval scale offers labels, order, as well as, a specific interval between each of its variable
options. Ratio scale bears all the characteristics of an interval scale, in addition to that, it can
also accommodate the value of “zero” on any of its variables.
Types of measurement scales

Nominal
NominalScales
Scales

Ordinal
Ordinal(Ranking)
(Ranking)Scales
Scales

Interval
IntervalScales
Scales

Ratio
RatioScales
Scales
Types of measurement scales-nominal scale
The numbers serve only as labels or tags for
identifying and classifying objects.
When used for identification, there is a strict one-to-
one correspondence between the numbers and the
objects.
The numbers do not reflect the amount of the
characteristic possessed by the objects.
The only permissible operation on the numbers in a
nominal scale is counting.
Only a limited number of statistics, all of which are
based on frequency counts, are permissible, e.g.,
percentages, and mode.
Types of measurement scales-nominal
scale(examples)
Are you a management graduate?
Yes-1
No-2

By which transport you come to your university:

1. Bus 2. Car 3. Scooty 4. Motor-Bike 5. Cycle
Types of measurement scales-ordinal scale
A ranking scale in which numbers are assigned to
objects to indicate the relative extent to which the
objects possess some characteristic.
Can determine whether an object has more or less of a
characteristic than some other object, but not how much
more or less.
Any series of numbers can be assigned that preserves the
ordered relationships between the objects.
In addition to the counting operation allowable for
nominal scale data, ordinal scales permit the use of
statistics based on centiles, e.g., percentile, quartile,
median.
Types of measurement scales-ordinal
scale(examples)
Consumers are asked to rank their brand preference:
Nokia
Samsung
Micromax
HTC
LG
Rank Item No. of Respondents
4 Nokia 150
1 Samsung 300
2 Micromax 250
3 LG 200
5 HTC 100
Total 1000
Types of measurement scales-interval scale
Numerically equal distances on the scale represent
equal values in the characteristic being measured.
It permits comparison of the differences between
objects.
The location of the zero point is not fixed. Both the zero
point and the units of measurement are arbitrary.
Any positive linear transformation of the form y = a + bx
will preserve the properties of the scale.
It is not meaningful to take ratios of scale values.
Statistical techniques, that may be used, include all of
those that can be applied to nominal and ordinal data, and
in addition the arithmetic mean, standard deviation, and
other statistics commonly used in research.
Types of measurement scales-interval scale
Types of measurement scales-interval
scale(example)
How likely are you to recommend White Ran as a
tourism spot to a friend?

Definitely will not Definitely will

1234567
Types of measurement scales-ratio scale

Possesses all the properties of the nominal,

ordinal, and interval scales.
It has an absolute zero point.
It is meaningful to compute ratios of scale
values.
Only proportionate transformations of the form
y = bx, where b is a positive constant, are
allowed.
All statistical techniques can be applied to ratio
data.
Types of measurement scales-ratio
scale(example)

Please circle the number of children under 18

years of age currently living in your household.
0 1 2 3 4 5 6 7
(if more than 7, please specify ___.)
Types of measurement scales
Types of measurement scales-ratio scale
Types of measurement scales.
Nominal Numbers
Assigned Finish
to Runners 7 8 3

Ordinal Rank Order

of Winners Finish
Third Second First
place place place
Interval Performance
8.2 9.1 9.6
Rating on a

0 to 10 Scale
15.2 14.1 13.4
Ratio Time to
Finish, in

Seconds.
Primary & secondary data.
Primary & secondary data.
• Primary data: Information that is developed or
gathered by the researcher specifically for the
research project at hand.

• Secondary data: Information that has previously

been gathered by someone other than the
researcher and/or for some other purpose than
the research project at hand.
Primary data sources.

1. OBSERVATION METHOD
2. INTERVIEW METHOD
3. QUESTIONNAIRE METHOD
4. DISTRIBUTOR AUDITS.
5. CONSUMER PANELS
6. DEPTH ANALYSIS
7. CONTENT ANALYSIS
Primary data sources.
OBSERVATION METHOD
The main characteristics of observation method are as follows:-
1. The information is sought by the investigators’ own direct
observation without asking from the respondent.
2. The information obtained under the method relates to what
is currently happening.
3. This technique is not complicated by the past behavior or
future attentions or attitudes.
4. This method is independent of the respondents
Primary data sources.
INTERVIEW METHOD
The main characteristics of interview Method are as
follows:-
The main characteristics of Questionnaire are:
1.Here the specially appointed enumerators go for
recording the answers of the questions.
2.Enumerators explain the meaning of the particular
questions and helps to answer it.
3.The questions may be structured or unstructured.
Primary data sources.
QUESTIONNAIRE METHOD
The main characteristics of interview Method are as
follows:-
1.In these method questionnaire is send to the persons
concerned with the request to answer the questions
and returned to the asker.
2.The questioners are mailed to the respondents.
3.The respondents have to answer the questions by
their own.
4.The method is extensively used in different economic
and business surveys.
 Primary data sources.
DISTRIBUTOR AUDITS.

The main points to note about Distributor Audit are-

1.This type of audit are done by distributors as well as
manufacturers through their salesman at a regular intervals.
2.Distributor get the retail stores audited through salesman and
use such information to estimate market size, share, seasonal
purchasing pattern and so on.
3.Store audits are for derivation of sales estimates and sales
trends.
4.It helps in evaluating sales variation and different in-store
promotion.
Primary data sources.
CONSUMER PANELS
The main points to note about consumer panels are-
1.A set of consumers are arranged to come to an
understanding to maintain detailed daily records of their
consumption and same is provided to the investigator on
demand.
2. It is essentially a sample of consumers who are interviewed
repeatedly over a period of time.
3.Consumer Panels are of two types-
a. A Transitory Consumer Panel- Here consumers are selected to measure the
effect for a particular time-period
b. A Continuing Consumer Panel - It is set up for indefinite period with a view
to collect data on a particular aspect of consumer behavior over time.
Primary data sources.
DEPTH ANALYSIS
The points of focus for Depth Interviews are-
1.This interviews are designed to grab the underlying motives , desires
and feeling of the respondents.
2.This technique are used as motivational research techniques.
3.Such interviews require great skill on the part of the interviewer
and thus needs considerable time.
4. The interviewer after considerable training should attempt for
depth interviews.
 Primary data sources.
PROJECTIVE TECHNIQUES

Projective techniques for data collection have been

Developed by the psychologists to use projections of
respondents forgetting the underlying motives ,urges
or intentions. Some of the projection techniques are –
1. Word Association Test
2. Sentence Completion Test
3. Story Completion Test
4. Pictorial Techniques
5. Play Techniques
6. Quizzes Tests.
secondary data sources.
CLASSIFICATION
• Internal secondary data: data that have been collected within the firm.

• Internal databases: databases (collection of data and information

describing items of interest) consisting of information gathered by a
company typically during the normal course of business transactions.
• External secondary data: data obtained from outside the firm.
• Types:
• Published
• Syndicated Services Data
• External Databases
secondary data sources.
• External secondary data
• Published: sources of information prepared for public distribution
and found in libraries or a variety of other entities
• Syndicated Services Data: data provided by firms that collect data
in a standard format and make them available to subscribing firms
• Consumer Purchase Data or Panel Type Data
• Retail & Wholesale Data
• Advertising Data.
• External Databases: databases provided by outside firms; many are now
available online (online information databases)
• Bibliographic databases
• Numeric or statistical databases
• Directory or list databases
• Comprehensive databases
Population, census & sampling.
 The Sample Plan is the process followed to select units
from the population to be used in the sample.
 A sample is a “part of a whole to show what the rest is
like”.
 Sampling helps to determine the corresponding value of
the population and plays a vital role in marketing
research.
A subset of the population, selected by either
“probability” or “non-probability” methods. If you
have a “probability sample” you simply know the
likelihood of any member of the population being
included (not necessarily that it is “random.”
Population, census & sampling.

• Population: the entire group under study as defined by

research objectives. Sometimes called the “universe.”

 Researchers define populations in specific terms such as

heads of households, individual person types, families,
types of retail outlets, etc. Population geographic
location and time of study are also considered.
Population, census & sampling.
• Sample: a subset of the population that should
represent the entire group

• Sample unit: the basic level of investigation…

consumers, store managers, shelf-facings, teens,
etc. The research objective should define the
sample unit

• Census: an accounting of the complete population

Sampling benefits.
 Save costs: Less expensive to study the sample than
the population.

 Save time: Less time needed to study the sample than

the population .

 Accuracy: Since sampling is done with care and

studies are conducted by skilled and qualified
interviewers, the results are expected to be accurate.

 Destructive nature of elements: For some elements,

sampling is the way to test, since tests destroy the
element itself.
Sampling limitations.
Demands more rigid control in undertaking sample
operation.

Minority and smallness in number of sub-groups often

render study to be suspected.

Accuracy level may be affected when data is subjected

to weighing.

Sample results are good approximations at best.

Census vs sampling.

Census
 Gathers information from every individual in a certain
group.
 Since data from the entire population is used, there is no
sampling variance.
 Provides detailed information about smaller groups.
 Can be quite costly, particularly for large populations, due
to census tally workers as well as hiring temporary census
home visitors.
 Includes an uncomfortable visit from a government
worker if the census is not filled out on time.
Census vs sampling.

Sampling
 Gathers information from only a section of the
population
 May have a significant degree of sample variance,
since the data is derived from only a small section
of a population
 May not provide enough information about
smaller groups or smaller geographical sections
of a place
 Costs much less than a census, since data is
gathered from only a small section of a group
THANK YOU