Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
Classification
Percentage
Assignments
20 %
Tests
20 %
Quizzes
20 %
Final exam
40 %
Total
100 %
Learning Objectives
Identify the data and its applications in business
and economy.
Describe the key aspects of data (Elements,
variables, observations and scales).
Differentiate between data classifications and
sources.
Define the descriptive statistics and statistical
inference.
Understand the role of computers in the statistical
analysis, and the data mining.
Point the light on the ethical guidelines for
statistical analysis.
1-4
Introduction
What does business statistics mean?
How does such type of knowledge help the
organizations and people in general?
How can we get information about the
events and use it in making decisions?
What is the meaning of data?
How the data can be collected, coded,
analysed, and interpreted?
All these questions can be answered by understanding
business statistics?
1-5
Statistics
The term statistics refers to the numerical
facts such as average, median, percent,
and index numbers that help us understand
the business and economic situations.
In broader sense, statistics is defined as
the art and science of collecting, coding,
analysing, presenting and interpreting the
data.
1-6
Applications of statistics in
business and economics
The most successful managers and
decision makers understand the information
and know how to use it effectively.
Statistics are used by different fields in the
business
Accounting
Finance
Marketing
Production
Economic
1-7
Data
Data are the facts and figures collected,
analyzed and summarized for presentation
and interpretation.
All the data collected in a particular study
are referred to as the data set.
Elements: are the entities on which the data
are collected.
Variables: are the characteristics of interest
for the elements.
Observations: the set of measurements
obtained for particular element.
1-8
Data
Va
ria
ble
s
Subject
Business
Economic
Accounting
Element
Attendance
collaboration Presentation
Collaborative
Good
Selfish
Very good
Boring
Excellent
s
on
i
t
va
er
s
Ob
1-9
Scales of measurements
There are four types of measurement
scales; nominal, ordinal, interval and ratio.
The scales are distinguished on the
relationships assumed to exist between
objects having different scale values.
The four scale types are ordered in that all
later scales have all the properties of earlier
scalesplus additional properties.
1-10
Continue
Nominal scale: it is not really a scale because it
does not scale objects along any dimension, it
simply labels objects. The nominal variable is
categorized variable but it not ordered.
Ordinal scale: Numbers are used to place objects
in order, but there is no information regarding the
differences (intervals) between points on the scale.
Interval scale: An interval scale is a scale on which
equal intervals between objects, represent equal
differences. The interval differences are meaningful.
Ratio scale : Have a true zero point, ratios are
meaningful
1-11
Comparison of Scales of
measurements
Nominal
Ordinal Interval
Ratio
Frequency distribution
Yes
Yes
Yes
Yes
No
Yes
Yes
Yes
Add or subtract
No
No
Yes
Yes
No
No
Yes
Yes
Ratio or coefficient of
variation
No
No
No
Yes
1-12
Classification of data
The data can be classified base on two different
angles:
First: the nature of data: categorical and quantitative
data.
Second: the time of collection: Cross-sectional and
Time series data.
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Sources of data
The data are usually obtained from
Sources of data..cont..
Second: statistical studies: sometimes the data
wanted for particular application are not found in
the existing sources. In such case, the data can be
obtained using a statistical study.
1. The experimental study; a variable of interest is
first identified. Then, one or more variables are
identified and controlled, so, that data can be
obtained about how they influence the variable of
interest.
2. The observational study; the statistical study
makes no attempt to control the variables of
interests.
1-17
Observational
The researcher
undertakes some
experiment and not just
make observations
There is human
intervention in
experiments.
1-18
Descriptive statistics
Descriptive statistics refer to the data summarized
and presented in form that is easy for the reader.
Such summarization can be tabular, graphical, or
numerical.
Several summarization methods can be found in
shapes such as tabulation, Par Chart, and Pie
Chart.
Such graphical charts and tabulation help the
reader in reading and interpreting the data.
1-20
Descriptive statistics..
Frequencies and percent frequencies of presentation
Frequency
Percent
Good
23.1
Very good
38.5
Excellent
38.5
Total
13
100.0
1-21
Statistical inference
Many situations require information or data
about a large group of elements (individuals,
products, companies..etc)
However, due to the time, cost, and other
considerations, data can be collected from
only a small portion of the group. The larger
group of elements in particular study is called
the population, and the smaller group is
called the sample.
1-22
Statistical inference..
For example, in case we want to know the average
of marks of all Undergraduate Malaysian Students
in business statistics, and there is no time to collect
the data from all universities or that collecting the
data is costly.
So, it is acceptable to choose a sample from the
population. This sample must represent the
population. It is simply adding the value of marks
and divided them by the number of students
(sample size).
1-23
Data mining
Data mining can be defined as the automated
extraction of predictive information from large data
bases.
The overall goal of the data mining process is to
extract information from a data set and transform it
into an understandable structure for further use.
Generally, data mining (sometimes called data or
knowledge discovery)
1-25
Continue ..
With data mining, a retailer could use point-ofsale records of customer purchases to send
targeted promotions based on an individual's
purchase history.
By mining demographic data from comment, the
retailer could develop products meet the needs of
specific customer segments.
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2
Descriptive statistics
Tabular and Graphical
Presentation
Learning Objectives
Identify how the categorical data can be summarized.
Understand the meaning of frequency distribution,
relative and percent frequencies of the categorical
data.
Identify how the quantitative data can be summarized.
Discussion of the frequency distribution, relative and
percent frequencies of the quantitative data.
Identify the meaning of the steam- and- left display
and how can be conducted.
Identify the meaning of the cross-tabulation and how
can be implemented.
1-32
1-33
Continue ..
Percent frequency distribution: a tabular
summarization of the data showing the percent
frequency of the data for each segment.
1-34
Continue (Bar
chart)..
(
Bar chart is a graphical device for summarizing a
frequency, relative or percent frequency distribution.
1- On one axis of the graph (usually the horizontal axis),
specify the labels that are used for classes.
2- Frequency, relative or percent frequency distribution can
be used for the other axis of the chart (usually the
horizontal axis).
3- Using a bar of fixed width drawn above each class label,
we extend the length of the bar until we reach the
frequency, relative or percent frequency distribution.
4- For categorical data, the bars should be separated to
emphasize the fact that each class is separated.
1-35
Continue
(Bie chart)..
the
same
in
qualitative
data,
frequency
1-37
Continue
1-38
Number of classes
Classes are formed by specifying ranges that
will be used to group the data. Usually used
between 5 to 20.
It is recommended using 5 or 6 classes for a
small number of data. For the large number of the
data, a large number of classes will be used.
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2. Histogram
It is common graphical presentation of quantitative
data, and prepared for data previously summarized in
either frequency, relative frequency or percent
frequency distribution.
it is constructed by placing the variables on the
horizontal axis, and frequency, relative frequency or
percent frequency distribution on the vertical axis.
Frequency, relative frequency or percent frequency
distribution of each class is shown by drawing
rectangle that is determined by the class limits on the
horizontal axis , and whose height is the
corresponding frequency , relative frequency or
percent frequency distribution.
1-44
3. Ogive graph
It is a graph of a cumulative distribution shows
data values on the horizontal axis and either the
cumulative frequency, the cumulative relative
frequency, or cumulative percent frequency on the
vertical axis.
The ogive is constructed by plotting a point
corresponding to the cumulative frequency of each
class.
1-46
Crosstabulation
It is a tabular summary of data for two variables,
and its usually used for examining the relationships
between two variables.
1-47
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