Statistics for Business and

Economics

Chapter 1
Statistics, Data, &
Statistical Thinking
 Learning Objectives
1. Define Statistics
2. Describe the Uses of Statistics
3. Distinguish Descriptive & Inferential Statistics
4. Define Population, Sample, Parameter, and
Statistic
5. Define Quantitative and Qualitative Data
6. Define Random Sample
 What Is Statistics?

1. Collecting Data Data Why?

e.g., Survey Analysis
2. Presenting Data
© 1984-1994 T/Maker Co.
e.g., Charts & Tables
Decision-
3. Characterizing Data
Making
e.g., Average

© 1984-1994 T/Maker Co.

 Application Areas

• Economics • Engineering
– Forecasting – Construction
– Demographics – Materials

• Sports • Business
– Individual & Team – Consumer Preferences
Performance – Financial Trends
 Statistical Methods
Statistical
Methods

Descriptive Inferential
Statistics Statistics
 Descriptive Statistics
1. Involves
• Collecting Data $
50
• Presenting Data
• Characterizing Data 25

2. Purpose 0
• Describe Data Q1 Q2 Q3 Q4

X = 30.5 S2 = 113
 Inferential Statistics
1. Involves
• Estimation Population?
• Hypothesis
Testing

2. Purpose
• Make decisions about
population characteristics
 Key Terms
1. Population (Universe)
• All items of interest • P in Population
& Parameter
2. Sample • S in Sample
• Portion of population & Statistic

3. Parameter
• Summary measure about population
4. Statistic
• Summary measure about sample
 Types of Data
Types of
Data

Quantitative Qualitative
Data Data
 Quantitative Data
Measured on a numeric 4
scale. 943
• Number of defective 52
items in a lot.
21
• Salaries of CEO's of 120 12
oil companies. 8
• Ages of employees at 71 3
a company.
 Qualitative Data
Classified into categories.
• College major of each
student in a class.
• Gender of each employee
at a company.
• Method of payment
(cash, check, credit card).
$ Credit
 Random Sample
Every sample of size n has an equal chance of
selection.
 Statistical
Computer Packages
1. Typical Software
• SAS
• SPSS
• MINITAB
• Excel

2. Need Statistical
Understanding
• Assumptions
• Limitations
 Conclusion
1. Defined Statistics
2. Described the Uses of Statistics
3. Distinguished Descriptive & Inferential
Statistics
4. Defined Population, Sample, Parameter,
and Statistic
5. Defined Quantitative and Qualitative Data
6. Defined Random Sample