Ch # 1 Introduction to Statistic.pptx

Welcome to
Business Statistics
Class
Kokab Manzoor
# 03338371767
Kokabmanzoor2012@gmail.com
Youtube.com/kokabmanzoor

Course Outline
• Introduction to Statistics
• Basics of statistics
• Presentation of Data
• Frequency distribution
• Measure of Central Tendency
• Mean, median, mode, Percentiles etc.
• Measure of Dispersion
• Standard deviation, variance, coefficient of variation
• Correlation and Regression
• Correlation coefficient, Simple regression.
• Probability Distribution
• Binomial and poisson distribution

Recommended Books
1. Statistics for Business & Economics
Twelfth Edition by David R. Anderson,
Dennis J. Sweeney, Thomas A. Williams
2. Introduction to Statistical theory by Sher
Muhammad Chaudhry & Dr Shahid Kamal
3. Business Statistics 6th Edition by Ken
Black

Chapter # 1
Introduction to Statistics
kokabmanzoor2012@gmail.com Youtube.com/kokabmanzoor

•Definition of statistics
•Some Basic concepts of statistics
•Data
•Population & sample
•Parameter and statistic
•Variables and its types
•Data collection methods
•Descriptive and Inferential Statistics
•Applications of statistics
Chapter Outline

Following are the ages of Students
32 21 35 23 48 23 24 25
25 26 26 51 26 65 27 28
28 28 28 29 44 29 29 30
30 30 49 46 31 31 31 45
21 34 35 21 35 36 36 37
49 38 50 39 41 42 42 42
43 43 43 29 44 44 44 31
45 31 47 48 23 48 30 49
37 50 38 26 51 27 27

Age in Years Number of Students
20-29 23
30-39 21
40-49 21
50-59 4
60-69 1
Statistics

•Statistics is a group of methods used to collect,
analyze, present, and interpret data to make
decisions.
In other words, Statistics consists of
conducting studies to collect, organize,
summarize, analyze, and draw conclusions.
What is Statistics?
What is Statistics

1 Data
2 Population
3 Sample
4 Parameter
5 Statistic
6 Variable
a) Quantitative variables
b)Qualitative variables
Basic Statistical Concepts

1 DATA
• “The information we gather with experiments and
surveys is collectively called data.”
•Data are the facts and figures collected, analyzed, and
summarized for presentation and interpretation.

2 Population
“Population is the group of all items that is under
study. A population is the set of all elements of interest
in a particular study.
OR
“Any set of people or objects with something in
common is known as population”

Normally population is very large and sometimes
infinite.
For Example All 3 million voters of Islamabad who
voted in election, college students, Number of
Doctors in Lahore, one child families, etc
For anything we are interested in studying we can
define a population.
Basic Statistical Concepts…

3 Sample
• Any part of the population is called sample.
• A sample is a set of data drawn from the population.
• For Example: In a grain market , if a customer takes a handful
of wheat to check the quality of that lot, Then the small
selected part is called sample and the process of selection is
called Sampling

4 Parameter
• — A descriptive measure of a population is
called parameter.
• Parameters are Represented by GREEK letters,
e.g. μ
For example, the average age of Voters of
Islamabad who voted for Mr. Haseeb

5 Statistic
A descriptive measure of a sample is called
statistic.
We denote by Roman letters, e.g X
For example, The average age of 500 voters of
Islamabad who voted for MR. Haseeb .

POPULATION SAMPLE
Avg height = 5.5 feet Avg height = 5.3 feet
Statistic
Parameter
μ X

Populations have Parameters,
Samples have Statistics.
Parameter
Population Sample
Statistic
Subset

19
6VARIABLE
A variable is a characteristic under study that
assumes different values for different
elements.
In contrast to a variable, the value of a
constant is fixed.

20
a) Quantitative Variables
•Discrete Variables
•Continuous Variables
b) Qualitative or Categorical Variables
Types of Variable

21
a) Quantitative Variables
•A variable that can be measured numerically is
called a quantitative variable.
•Quantitative variables are further classified into
two categories.
1 Discrete Variables
2 Continuous Variables
Types of Variable

22
1) Discrete Variable
A variable whose values are countable is
called a discrete variable.
For example number of persons in a
family, number of births in a city, number of
students in an institute etc
.
Types of Quantitative Variables

23
2 Continuous Variable
•A variable that can assume any numerical value
over a certain interval or intervals is called a
continuous variable.
•For example, age of people, weight of students in
a class, height of building, temperature of a city
etc..
Types of Quantitative Variables

•A variable that cannot assume a numerical
value but can be classified into two or more
non-numeric categories is called a qualitative
or categorical variable.
•For example colour of the eyes of person,
intelligence of students, satisfaction etc..
Qualitative Variable

25
Variable
Quantitative Qualitative or
categorical (e.g.,
make of a computer,
hair color, gender)
Continuous
(e.g., length,
age, height,
weight, time)
Discrete (e.g.,
number of
houses, cars,
accidents)
Types of Variable

Descriptive Statistics
Vs
Inferential Statistics

Descriptive statistics consists of the collection,
organization, summation, and presentation of data.
It describes the data.
For example, average of anything is a descriptive statistic.
Like batting averages, average daily rainfall, or average daily
temperature etc.
Descriptive Statistics

Summary Stats
The Average Age is 36.07

•Descriptive Statistics describes the data set but
doesn’t allow us to draw any conclusions or make
any inferences about the data.
• Hence we need another branch of statistics i.e.
inferential statistics.

Inferential statistics is used to draw conclusions or
inferences about characteristics of populations based on
data from a sample.
OR
Inferential Statistics deals with procedures used to
make inferences (predictions) about a population parameter
from information contained in a sample.

Data that have been originally collected
(raw data) and have not been applied any
statistical or mathematical tool on such
collected data is called Primary data.
Primary Data

Those data which have been already
collected and analyzed by someone and have
been applied any statistical or mathematical
tool on primary data at least once are called
Secondary Data.
Secondary Data

Direct personal investigation.
Indirect personal investigation.
Investigation Through Mailed questionnaire
Investigation Through Mailed questionnaire
in charge of Enumerators.
Methods Of Collecting Primary Data

•In this method the investigator collects
information directly from the informants.
•These information are highly accurate,
reliable and useful.
•But this method is slow and expensive and
therefore is suitable only for small scale.
1) Direct personal investigation:

•Some time informants face hesitation and refuse to give
direct answers to the investigator.
•Then information is collected either by putting the
informants some indirect questions or by interviewing
several third parties who know the informants very well.
•This method save time and money but the collected
information's are not 100% correct because the data is
collected by the third person.
2) Indirect personal investigation:

•In this method a standard list of questions is
prepared which is directly related to the purpose of
inquiry.
•This list is known as Questionnaire and is sent to the
informants and requesting them to return it back to
the investigator after answering all the given
questions.
•This method is fairly cheep.
3) Investigation Through Mailed
questionnaire:

•In this method the information is collected by
employing trained enumerators who assist the
informants in making the entries in the
questionnaire correctly.
•This method gives the most reliable
information if the enumerator is well trained.
4) Investigation Through Mailed
questionnaire in charge of Enumerators

•Statistics are widely used in economics study
and research. Some of the areas of economic
interest in which statistical tools are used are
as follows
1 Statistical methods are used in measuring
GDP (Gross domestic Product)
2 Economic stability is judged by statistical
studies of business cycles.
Statistics applications in Economics

3 Statistical analyses, such as population growth,
unemployment rate, inflation rates, rural and
urban population etc influence much on
economic policy making.
4 Statistics are necessary in the field of money
and banking also.
Statistics applications in Economics

•Statistical analysis plays an important role in
all aspects of business.
•Statistics influence the operation of business
in many dimensions. It includes production,
distribution, marketing, planning manpower,
etc.
•Some of them are mentioned in next slide.
Statistics applications in Business

1 Production
2 Marketing
3 Purchasing
4 Investment
5 Banking
6 Quality control
7 Entrepreneurship
8 Human Resource
Statistics applications in Business

•Statistic is applicable in almost every
aspect of our daily life. It helps in
organizing the numerical information in
the form of tables, graphs, and charts.
•It facilitates us in making better and
informed decisions.
Summary

Kokab Manzoor
0333-8371767
www.facebook.com/kokabmanzoor19
www.youtube.com/kokabmanzoor

Ch # 1 Introduction to Statistic.pptx

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