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Chapter 1
Business Statistics, A First Course (4e) 2006 Prentice-Hall, Inc. Chap 1-1
Learning Objectives
Business Statistics, A First Course (4e) 2006 Prentice-Hall, Inc. Chap 1-2
Basic Concepts of Statistics
Business Statistics, A First Course (4e) 2006 Prentice-Hall, Inc. Chap 1-3
Key Definitions
A population (universe) is the collection of all
members of a group
A sample is a portion of the population
selected for analysis
A parameter is a numerical measure that
describes a characteristic of a population
A statistic is a numerical measure that
describes a characteristic of a sample
Business Statistics, A First Course (4e) 2006 Prentice-Hall, Inc. Chap 1-4
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
Descriptive statistics
Collecting, summarizing, and presenting data
Inferential statistics
Drawing conclusions about a population based
only on sample data
Business Statistics, A First Course (4e) 2006 Prentice-Hall, Inc. Chap 1-6
Descriptive Statistics
Collect data
e.g., Survey
Present data
e.g., Tables and graphs
Characterize data
e.g., Sample mean =
X i
Business Statistics, A First Course (4e) 2006 Prentice-Hall, Inc. Chap 1-7
Inferential Statistics
Estimation
e.g., Estimate the population
mean weight using the sample
mean weight
Hypothesis testing
e.g., Test the claim that the
population mean weight is 120
pounds
Business Statistics, A First Course (4e) 2006 Prentice-Hall, Inc. Chap 1-8
Collecting Data
Primary Sources Secondary Sources
Data Collection Data Compilation
Print or Electronic
Observation Survey
Experimentation
Business Statistics, A First Course (4e) 2006 Prentice-Hall, Inc. Chap 1-9
Types of Data
Data
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 characteristics)
Business Statistics, A First Course (4e) 2006 Prentice-Hall, Inc. Chap 1-10
Chapter Summary
Business Statistics, A First Course (4e) 2006 Prentice-Hall, Inc. Chap 1-11