Page 0 of 16

BBA 2001
STATISTICS

TAN WAH TIONG
940928-14-5531
201565

CHONG KAR YUN
JUNE 2013
Page 1 of 16





NO DETAIL PAGE
1.0 Contents 1
2.0 Introduction 2
3.0 Task 1 3
4.0 Task 2 4
5.0 Task 3 5
6.0 Task 4 6-8
7.0 Task 5 9
8.0 Task 6 10
9.0 References 11
10.0 Coursework 12-15
Page 2 of 16

2.0 Introduction to statistics
By the 18th century, the term "statistics" designated the systematic collection of
demographic and economic data by states. In the early 19th century, the meaning of
"statistics" broadened to include the discipline concerned with the collection, summary, and
analysis of data. Today statistics is widely employed in government, business, and all the
sciences. Electronic computers have expedited statistical computation, and have allowed
statisticians to develop "computer-intensive" methods.
The term "mathematical statistics" designates the mathematical theories of probability and
statistical inference, which are used in statistical practice. The relation between statistics and
probability theory developed rather late, however. In the 19th century, statistics increasingly
used probability theory, whose initial results were found in the 17th and 18th centuries,
particularly in the analysis of games of chance (gambling). By 1800, astronomy used
probability models and statistical theories, particularly the method of least squares, which
was invented by Legendre and Gauss. Early probability theory and statistics was
systematized and extended by Laplace; following Laplace, probability and statistics have
been in continual development. In the 19th century, statistical reasoning and probability
models were used by social scientists to advance the new sciences of experimental
psychology and sociology, and by physical scientists in thermodynamics and statistical
mechanics. The development of statistical reasoning was closely associated with the
development of inductive logic and the scientific method. Statistics can be regarded as not a
field of mathematics but an autonomous mathematical science, like computer science and
operations research.

Page 3 of 16

3.0 Task 1
3.1 method of payment
Area Pass Cash Total
South 29,000 34,000 63,000
West 51,000 114,000 165,000
East 35,000 43,000 78,000
North 43,000 81,000 124,000
Total 158,000 272,000 430,000

3.2 Plot a component bar chart, with bars for each city area, to represent the data.


0
20000
40000
60000
80000
100000
120000
140000
160000
180000
N
u
m
b
e
r

o
f

P
a
s
s
e
n
g
e
r
s

Area
Cash
Pass
Page 4 of 16

4.0 Task 2
The audience figures for the 26 programmers in a TV series (in millions) are:
4.0 3.8 4.2 2.9 2.5 3.5 2.6 3.6 5.0 3.5 4.9 2.9 3.3
4.8 1.0 3.2 5.1 2.4 3.7 4.2 3.5 3.8 3.6 2.3 3.9 2.1
Produce a stem and leaf display for this set of data.
Stem Leaves
1 0
2 1 3 4 5 6 9 9
3 2 3 5 5 5 6 6 7 8 8 9
4 0 2 2 8 9
5 0 1

Leaf unit = 0.1million





Page 5 of 16

5.0 Task 3
Number of employee of a computer games company over nine years.



Time series chart



0
100
200
300
400
500
600
1992 1993 1994 1995 1996 1997 1998 1999 2000
N
u
m
b
e
r

O
f

E
m
p
l
o
y
e
e
s

Years
Employees
Employees
Year 1992 1993 1994 1995 1996 1997 1998 1999 2000
Employees 7 15 38 112 149 371 371 508 422
Page 6 of 16

6.0 Task 4
Two independent estate agencies each employ 9 people. The number of years experience in
the property sector that employees of these companies have is
Agency A 0 4 4 5 7 8 10 11 15
Agency B 0 0 4 4 7 10 10 14 15

5.1 Range and Histograms for each set of data
Range A = 15 0
Range B = 15 0



0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
0 4 5 7 8 10 11 14 15
Agency B
Agency A
Page 7 of 16

5.2 Mean and the standard deviation of the data
Agency A
Mean =

= 7.11
Experience Mean

2
0 7.11 - 7.11 50.55
4 7.11 - 3.11 9.67
4 7.11 - 3.11 9.67
5 7.11 - 2.11 4.45
7 7.11 - 0.11 0.01
8 7.11 0.89 0.79
10 7.11 2.89 8.35
11 7.11 3.89 15.13
15 7.11 7.89 62.2521

2
= 160.87
Agency B
Mean =

= 7.11
Experience Mean

2
0 7.11 - 7.11 50.55
0 7.11 - 7.11 50.55
4 7.11 - 3.11 9.67
4 7.11 - 3.11 9.67
7 7.11 - 0.11 0.01
10 7.11 2.89 8.35
10 7.11 2.89 8.35
14 7.11 6.89 47.47
15 7.11 7.89 62.2521

2
= 246.87

Page 8 of 16

Standard deviation of Agency A

S =

= 4.48 (2 d.p)
Standard deviation of Agency B
S =

= 5.56 (2 d.p)
The mean of Agency A and Agency B is same, but standard deviation of Agency B (5.56) is
higher than Agency A (4.48).







Page 9 of 16

7.0 Task 5
The kilocalories per portion in 32 different breakfast cereals were recorded and collated into
the following grouped frequency distribution:
Kcal per portion Frequency
80 and under 120 3
120 and under 160 11
160 and under 200 9
200 and under 240 7
240 and under 280 2
Mean and median of the distributions.

Class Midpoint Frequency
80 a.u. 120 100 3 300
120 a.u. 160 140 11 1540
160 a.u. 200 180 9 1620
200 a.u. 240 220 7 1540
240 a.u. 280 260 2 520

Mean =

Median = L+(

= 160 + (

) 40
= 172.5 = 168.89
The mean and median are close. This distribution is fairly symmetrical.

Page 10 of 16

8.0 Task 6
Use of statistics in everyday life.
Statistics are used in various ways in our everyday life. For instance food packaging uses
statistics. Other functions like weather forecasts also use statistics.
Besides, Statistics also deal with frequency distribution. It is used to compare two or
more frequency distribution taken from different population to see if there are any
differences between them. The statistics uses the following measures for the comparison.
They are mean, median and mode. Mean is the average of all the observations whereas the
median is the middle most value of the observations and mode has the maximum frequencies.
Use of mean in daily life is to see the average mark of the class obtained. This average
helps to see how many students are above average, how many are average students and how
many are below averages. The teacher tries to help the average and below average students
to score more grades in future. In a factory, the mean of the wages helps the authorities
to know if the workers' welfare is maintained. It also helps to compare the salaries of the
employees of the different companies. In sales, the average sales in the district helps the
sales manager to plan for increasing the sales in the future.
The government takes the average income and expense of the citizens to know whether
the citizen rights are maintained. The family finds the average of their expenses to balance
their finance. The average production of agricultural commodities, the industrial goods, the
average exports and imports help the country to see their developments.
As the conclusion, statistics is the basis for almost all the activities of individuals, group,
society, community and country.
Page 11 of 16

9.0 Reference
- www.google.com
- http://wiki.answers.com/Q/The_use_of_statistics_in_daily_life
- http://www.ask.com/question/how-do-we-use-statistics-in-everyday-life
- http://www.studymode.com/essays/Use-Of-Statistics-In-Daily-Life-395475.html
- http://en.wikipedia.org/wiki/History_of_statistics


Page 12 of 16

10.0 Coursework
Step one: Identifying the problem or opportunity
A manager must understand clearly and define correctly the problem at hand. He must be
careful not to confuse the actual problems that the management is trying to solve and the
symptoms. However, sometime one can use symptoms as clues to find the actual problem.
For example, the monthly sales of Proton cars have been declining significantly for
the past 24 months even though the overall auto industry has shown steady growth. The
management is trying to identify the actual causes or factors that had contributed to the
problem of declining local car sales so that corrective action can be taken immediately.
Failing to find the actual causes might result in the local auto industry having to slow
down, and hence, reduced sales and lower profits. The objective is to determine the factors
that contributed to the decline in demand for Proton cars. The actual problem is unknown
while the symptoms are a decline in sales, high cancellation of bookings and slow growth of
new bookings.
Step two: Gathering available facts
Data and information that are related to the actual problem must be gathered.
Internal data can be obtained from the departments within an organisation. For
example, accounting and financial data can be obtained from the financial and accounting
departments, production figures are obtainable from the production department and sales
data can be obtained from the marketing and sales department. The customer service
department and human resource department also provide useful data for analysis.
Page 13 of 16

External data can be obtained from other organisations such as the Ministry of
domestic Trade and Consumer Affairs, Bank Negara, the Ministry of International Trade and
other business organisations. Other Sources include the Journal of Auto industry, the Journal
of Malaysian Business, Newspapers and magazines.
Step three: Gathering new data
If the available data are inadequate to get a clear picture of the problem, the management
may decide to collect new data. Sometimes, data on important variables are not available
from secondary sources or the data obtained from these sources are already outdated or not
suitable for use. As such, the management must obtain data from primary sources.
Appropriate data collection methods must be applied so that the data are gathered
accurately. For example, the management may want to collect data on customers
expectation on certain characteristics of passenger cars such as the safety standard, design,
performance, price, after-sales service, resale value and rate of financing.
At the same times, the management may also require information regarding the
marketing strategy of competitors such as advertisement and promotional strategies, package
offer, incentive for trade-in, or switching incentive. Several data collection methods can be
applied. They are direct observation, personal interview, telephone interview (especially for
long distance respondents), direct questionnaires, mailed questionnaires and focus group
study.
Before primary data is obtained, the manager must determine the representative
sample to be used for the research. In choosing the sample, the researcher must apply
appropriate sampling techniques so that the sample selected represent the population and
Page 14 of 16

results in inaccurate information for decision-making. Any analysis on the based data is not
valid. The sampling technique used depends on the nature of the target population, the
budget available and also the objective of the study. Among the sampling techniques
available are simple random samplings, systematic sampling, stratified sampling, duster
sampling, quote sampling, judgmental sampling and snowball sampling.
Step four: Classifying and organising the data
After the required data have been collected, the next task is to make the data more
meaningful, readable and understandable in the context of the problem being investigated.
Raw data are meaningless. They must be transformed into meaningful form.
Step five: Presenting and analysing data
Data must be presented in useful and meaningful ways so that they are useful for decision-
makers and the people reading the report. Some of the common methods of presenting data
are through frequency tables, bar charts, graphs, histograms, frequency polygons, ogives and
stem-and-leaf plots.
Frequency tables are used to summarise data based on variables of interest. For
example, Proton customers can be grouped according to demographic variables such as
income level, education level, ethnic group and type of job, so that useful information on
demand can be obtained and analysed. Data presentation through charts, graph, scatter plots
and other visualised methods helps in identifying the relationship between variables of
interest
For example, a manager of a local car company may to determine the relationship
between the demand for local cars and demographic variable such as gender, education level,
Page 15 of 16

income level and social classes. At the same time, he may be interested to establish the
relationship of these variables with the choice of models, price, and quality of service and
product performance. If we want to get more thorough information, the data need to be
further analysed. Among the methods of data analyses are cross tabulation, chi-square test,
regression analysis and time series analysis.
Step six: Making a decision
After going through data presentation, data analysis ad interpretation of the results, the
management should have a clear idea of the problem at hand. Certain variables may
influence some other variables. The management can list down the possible alternative
action to take under various economic conditions, and other influential conditions such as
change in interest rate, change in consumers lifestyles and developments in technology.
With appropriate statistical analyses techniques and models, the management can
make the right decision-marking under uncertainty and decision-marking under risk. This is
followed by the implementation of the plan. Appropriate corrective action should be carried
out in cases where deviation from the plan occurs.