Statistics for Business and Economics Chapter 1 Statistics

Statistics for Business and Economics Chapter 1 Statistics, Data, & Statistical Thinking

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

What Is Statistics? 1. Collecting Data e. g. , Survey Data Analysis Why? 2. Presenting Data e. g. , Charts & Tables © 1984 -1994 T/Maker Co. Decision. Making 3. Characterizing Data e. g. , Average © 1984 -1994 T/Maker Co.

Application Areas • Economics – Forecasting – Demographics • Sports – Individual & Team Performance • Engineering – Construction – Materials • Business – Consumer Preferences – Financial Trends

Statistical Methods Descriptive Statistics Inferential Statistics

Descriptive Statistics 1. Involves • Collecting Data • Presenting Data • Characterizing Data 2. Purpose • Describe Data 50 $ 25 0 Q 1 Q 2 Q 3 Q 4 X = 30. 5 S 2 = 113

Inferential Statistics 1. Involves • Estimation • Hypothesis Testing 2. Purpose • Make decisions about population characteristics Population?

Key Terms 1. Population (Universe) • All items of interest 2. Sample • Portion of population • P in Population & Parameter • S in Sample & Statistic 3. Parameter • Summary measure about population 4. Statistic • Summary measure about sample

Types of Data Quantitative Data Qualitative Data

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 52 21 12 120 71 8 3

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