Professional Documents
Culture Documents
Collecting Data
e.g., Survey
Data Analysis
2. Presenting Data
e.g., Charts & Tables
3. Characterizing Data
e.g., Average
Making decision
Business Statistics
Statistical Methods Statistical Methods
Descriptive Statistics
Inferential Statistics
Business Statistics
Descriptive Statistics
1.
50
25
0 Q1 Q2 Q3 Q4
2.
X = 30.5 S2 = 113
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Inferential Statistics
1.
Involves
2.
Purpose
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Types of Data
Quantitative Data
Qualitative Data
Business Statistics
Quantitative Data
Measured on a numeric scale. Number of defective items in a lot. Salaries of CEO's of oil companies. Ages of employees at a company.
4 943 21 120 52
12
8
71
Business Statistics
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
Business Statistics
Type of Data
Rasio
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Data
Categorical
Examples:
Numerical
Discrete
Examples: Number of Children Defects per hour (Counted items)
Continuous
Examples:
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Levels of Measurement and Measurement Scales
Differences between measurements, true zero exists Differences between measurements but no true zero Ordered Categories (rankings, order, or scaling) Categories (no ordering or direction)
Ratio Data
Interval Data
Higher Levels
Ordinal Data
Lowest Level (Weakest form of measurement)
Nominal Data
Business Statistics
Levels of Measurement and Measurement Scales
EXAMPLES:
Ratio Data
Interval Data
Ordinal Data
Service quality rating, Standard & Poors bond rating, Student letter grades
Nominal Data
Business Statistics
Application Areas
Economics
Sports
Engineering
Forecasting
Demographics Individual & Team Performance Construction Materials Consumer Preferences Financial Trends
Business
Business Statistics
Random Sample
Every sample of size n has an equal chance of selection.
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Key Tems
1. 2.
Population (Universe)
Sample
3.
4.
Parameter
Statistic
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Activities of Statistics
1. Designing the study:
First step Plan for data-gathering Random sample (control bias and error)
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3. Modeling the data A framework of assumptions and equations Parameters represent important aspects of the data Helps with estimation and hypothesis testing 4. Estimating an unknown: Best guess based on data Wrong - buy by how much? Confidence interval - were 95% sure that the unknown is between
Business Statistics
5. Hypothesis testing: Data decide between two possibilities Does it really work? [or is it just randomly better?] Is financial statement correct? [or is error material?] Whiter, brighter wash?
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Probability
Inverse of statistics
world works, what data are you likely to see? Examples of probability: Flip coin, stock market, future sales, IRS audit, Foundation for statistical inference
Statistics: generalizes from data to the world Probability: What if Assuming you know how the
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Statistical View of the World
Data are imperfect We do the best we can -- Statistics helps! Events are random Cant be right 100% of the time Use statistical methods Along with common sense and good
judgment Be skeptical! Statistics can be used to support contradictory conclusions Look at who funded the study?
Business Statistics
Statistical Computer Packages
1.
Typical Software
2.
Assumptions Limitations