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, andStatistic

5. Define Quantitative and Qualitative Data

6. Define Random Sample

What Is Statistics?

Why?1. Collecting Data e.g., Survey

2. Presenting Data e.g., Charts & Tables

3. Characterizing Data e.g., Average

Data Analysis

Decision-Making

© 1984-1994 T/Maker Co.

© 1984-1994 T/Maker Co.

Application Areas

• Economics– Forecasting

– Demographics

• Sports– Individual & Team

Performance

• Engineering– Construction

– Materials

• Business– Consumer Preferences

– Financial Trends

Statistical Methods

StatisticalMethods

DescriptiveStatistics

InferentialStatistics

Descriptive Statistics

1. Involves• Collecting Data• Presenting Data• Characterizing Data

2. Purpose• Describe Data

X = 30.5 S2 = 113

0

25

50

Q1 Q2 Q3 Q4

$

1. Involves• Estimation• Hypothesis

Testing

2. Purpose• Make decisions about

population characteristics

Inferential Statistics

Population?

Key Terms

1. Population (Universe)• All items of interest

2. Sample• Portion of population

3. Parameter• Summary measure about population

4. Statistic• Summary measure about sample

• PP in PPopulation & PParameter

• SS in SSample & SStatistic

Types of Data

Types ofData

QuantitativeData

QualitativeData

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.

3

52

71

4

8

943

120 1221

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 SampleEvery sample of size n has an equal chance of selection.

StatisticalComputer Packages

1. Typical Software• SAS

• SPSS

• MINITAB

• Excel

2. Need Statistical Understanding

• Assumptions

• Limitations

Conclusion1. Defined Statistics2. Described the Uses of Statistics3. Distinguished Descriptive & Inferential

Statistics4. Defined Population, Sample, Parameter,

and Statistic

5. Defined Quantitative and Qualitative Data

6. Defined Random Sample