copyright ©2014 pearson education chap lgs-1 statistics for managers using microsoft excel ® 7 th...

Copyright ©2014 Pearson Education Chap LGS-1

Statistics for Managers Using Microsoft Excel®

7th Edition, Global Edition

Let’s Get Started


Learning Objectives

In this chapter you learn: That the volume of data that exists in the world makes

learning about statistics critically important That statistics is a way of thinking that can help you make

better decisions What business analytics is and how these techniques

represent an opportunity for you How the DCOVA framework for applying statistics can

help you solve business problems How to make best use of this book How to prepare for using Microsoft Excel® with this book

In Today’s Business World You Cannot Escape From Data

In today’s digital world ever increasing amounts of data are gathered, stored, reported on, and available for further study.

You hear the word data everywhere.

Data are facts about the world and are constantly reported as numbers by an ever increasing number of sources.


Each Business Person Faces A Choice Of How To Deal With This Explosion Of Data

They can ignore it and hope for the best.

They can count on other people’s summaries of data and hope they are correct.

They can develop their own capability and insight into data by learning about statistics and its application to business.


Statistics Is Evolving So Businesses Can Use The Vast Amount Of Data Available

The emerging field of Business Analytics makes “extensive use of: Data Statistical and quantitative analysis Explanatory & predictive models Fact based management

to drive decisions and actions.”


To Properly Apply Statistics You Should Follow A Framework To Minimize Possible Errors

In this book we will use DCOVA

Define the data you want to study in order to solve a problem or meet an objective

Collect the data from appropriate sources Organize the data collected by developing

tables Visualize the data by developing charts Analyze the data collected to reach

conclusions and present resultsChap LGS-6Copyright ©2014 Pearson Education

Using The DCOVA Framework Helps You To Apply Statistics To:

Summarize & visualize business data

Reach conclusions from those data

Make reliable forecasts about business activities

Improve business processes


Developing Operational Definitions Is Crucial To Avoid Confusion / Errors

An operational definition is a clear and precise statement that provides a common understanding of meaning

In the absence of an operational definition miscommunications and errors are likely to occur.

Arriving at operational definition(s) is a key part of the Define step of DCOVA


Chap LGS-9

Operational Definitions Of Terms

VARIABLE

A characteristic of an item or individual.

DATA

The set of individual values associated with a variable.

STATISTICS

The methods that help transform data into useful information for decision makers.

Copyright ©2014 Pearson Education

Are These Numbers Useful In Making Decisions

A survey of 1,179 adults 18 and over reported that 54% thought that 15 seconds was an acceptable online ad length before seeing free content.

A survey of more than 3,000 full-time traditional-age students found that the students spent 51% of their time on socializing, recreation, and other activities; 9% of their time attending class/lab; and 7% of their time studying.


Without Statistics You Can’t

Determine if the numbers in these studies are useful information

Validate claims of causality

See patterns that large amounts of data sometimes reveal


Chap LGS-12

Two Different Branches Of Statistics Are Used In Business

Statistics The branch of mathematics that transforms data into useful information for decision makers.

Descriptive Statistics

Collecting, summarizing, presenting and analyzing data

Inferential Statistics

Using data collected from a small group to draw conclusions about a larger group

Copyright ©2014 Pearson Education

Business Analytics: The Changing Face Of Statistics

Use statistical methods to analyze and explore data to uncover unforeseen relationships.

Use management science methods to develop models that impact an organization’s strategy, planning, and operations.

Use information systems methods to collect and process data sets of all sizes, including very large data sets that would otherwise be hard to examine efficiently.


Business Analytics Has Already Been Applied In Many Business Decision-Making Contexts

Human resource managers (HR) understanding relationships between HR drivers, key business outcomes, employee skills, capabilities, and motivation.

Financial analysts determining why certain trends occur to predict future financial environments.

Marketers driving loyalty programs and customer marketing decisions to drive sales.

Supply chain managers planning and forecasting based on product distribution and optimizing sales distribution based on key inventory measures.


The Growth Of “Big Data” Spurs The Use Of Business Analytics

“Big Data” is still a fuzzy concept.

Very large data sets are arising because of the automatic collection of high volumes of data at very fast rates.

Older statistical techniques are often times impractical with big data.


How To Use This Book

The Using Statistics scenario at the beginning and end of each chapter provide A real business situation that the chapter’s topics can

help address Context which is an important part of the learning process

Downloadable example Excel® worksheets are provided throughout each chapter

Numerous case studies are provided so you can Apply what you have learned Enhance your analytical & communication skills


Microsoft Excel Is The Primary Data Analysis Application In Microsoft Office

Excel uses worksheets (spreadsheets) to both store data and present analysis results

A worksheet has rows and columns The intersection of a specific row and column is called a

cell and is where data is stored Standard business practice is to store the data

associated with a variable in a column Excel saves files that it calls workbooks A workbook is a collection of worksheets and chart

sheets An excel file is typically saved in an .xlsx or .xls format


How Can I Use Excel With This Book

Excel can be used to learn and apply the statistical methods discussed in this book

Excel can be used by utilizing the Excel add-in PHStat PHStat is available free for users of this book PHStat simplifies the task of operating Excel

Excel can also be used via In-Depth Excel In-Depth Excel instructions use templates for a specific

statistical solution The Excel Guides explain how to use either method


Computing Skills Needed For This Book


Basic Computing Skills SpecificsIdentification of Excel Title bar, minimize/resize/close buttons, scroll bars,application window objects formula bar, workbook area, cell pointer.

Office Ribbon parts: tab, group, gallery, launcherbuttonShortcut (popup) menu

Knowledge of mouse Click (also called select), check and clear, doubleclick,operations right-click, drag/drag-and-drop

Identification of dialog box Command button, list box, drop-down list, edit box,Objects option button, check box

Basic Microsoft Office Skills SpecificsExcel data entry Organizing worksheet data in columns, entering

numerical and categorical data

File operations Open, save, print

Worksheet operations Create, copy

Excel Skills Needed For The In-Depth Excel Approach


Skill SpecificsFormula skills Concept of a formula, cell references

absolute and relative cell references, how to enter a formula, how to enter an array formula

Workbook presentation How to apply format changes that affect the display of worksheet cell contents

Chart formatting correction How to correct the formatting of charts that Excel improperly creates

Discrete histogram creation How to create a properly formatted histogram for a discrete probability distribution


Chapter Summary

In this chapter we have seen: That the volume of data that exists in the world makes

learning about statistics critically important That statistics is a way of thinking that can help you make

better decisions What business analytics is and how these techniques

represent an opportunity for you How the DCOVA framework for applying statistics can help

you solve business problems How to make best use of this book How to prepare for using Microsoft Excel with this book

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or

otherwise, without the prior written permission of the publisher. Printed in the United States of America.

copyright ©2014 pearson education chap lgs-1 statistics for managers using microsoft excel ® 7 th...

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