Statistics for Business and Economics | Meir Waknine

Statistics for Business and Economics Meir Waknine

Learning Objectives

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

1.

2.

3.

4.

What Is Statistics?

1. Collecting Data e.g., Survey

Data Analysis

Why?

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

© 1984-1994 T/Maker Co.

DecisionMaking

3. Characterizing Data e.g., Average

© 1984-1994 T/Maker Co.

Application Areas • Economics

• Engineering

– Forecasting – Demographics

• Sports

• Business

– Individual & Team Performance

– Construction – Materials

– Consumer Preferences – Financial Trends

Statistical Methods Statistical Methods

Descriptive

Inferential

Statistics

Statistics

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

2. Purpose • Describe Data

50

$

25 0 Q1

Q2

Q3

Q4

X = 30.5 S2 = 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

• P in Population & Parameter

2. Sample

• S in Sample & Statistic

• Portion of population

3. Parameter • Summary measure about population

4. Statistic

• Summary measure about sample

Types of Data 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 21

12 8

120 71

52

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

Thank You