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07/06/2011

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CHAPTER 1: INTRODUCTION TO STATISTICS
Definition:
Statistics is a scientific procedures & methods for collecting,organizing, summarizing, presenting & analyzing data, obtaining usefulinformation, valid conclusions & making effective decisions based on theanalysis.
The use of statistics
To solve the problems
To make effective decisions in administration, marketing, engineering,social science & others.
Why a Manager Needs to Know about Statistics
To know how to properly present information
To know how to draw conclusions about populations based on sampleinformation
To know how to improve processes
To know how to obtain reliable forecasts
The use of statistics in business
Statistics are used by all industries and businesses as a standardizedunit of measurement for presenting data in a useful and meaningfulformat.
Statistics can be used to measure historical performance and toforecast future targets. For business managers and leaders, statisticsprovide insight into how business units are performing relative to anorganizations goals and objectives. Statistics also forecast futuretrends and are used in all areas of human thought an endeavor forplanning purposes.
Statistics are used in all areas of trade and commerce.
Since the advent of the internet, statistics have become important foronline business operators.
The computer industry makes use of statistics to detect emergingtrends and develop products that are in line with consumerpreferences. Without data to support product development,
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organizations would have no way of determining changing consumerpreferences and tastes.
Surveys are often used by companies to get closer to the targetmarket.
Types of statistics
Descriptive statistics
– data are compiled, organized, summarized &presented in suitable visual forms which are easy to understand &suitable for use. Various tables, graphs, charts & diagrams are used toexhibit the information obtained from the data.
Collect data- e.g. Survey
Present data- e.g. Tables and graphs
Characterize data - e.g. Sample mean =
Inferential statistics –
make generalizations about a population byanalyzing information from the samples. Probability is often used whenstating the conclusions.
Estimation - e.g.: Estimate the population mean weight using thesample mean weight
Hypothesis testing - e.g.: Test the claim that the population meanweight is 120 pounds
Some common statistical terms
Population –
is used to designate the complete set of items that areof interest in the research.
E.g.
‘A study on the reading habits of secondary school children inMalaysia’.
PopulationSample
2
i
X n

The population consists of all the secondary school children inMalaysia.
Sample –
is a subset of items that are chosen from the population. The sample may consist of 1000 secondary students randomlyselected from 13 states in Malaysia.
Census
– If the population we wish is small, it is possible for us tomeasure a variable for every unit in the population. If the study iscarried out in this way on the whole population, the end result is acencus of the population.
Constant –
One of the fixed values.
E.
g. Number of days in a week (7 days)
Variable –
the characteristics of the population of interest.
E.g.
Monthly income, age, gender, level of education & others.
Data –
a measure on variables of interest obtained from a sample.
E.g
. Researchers may collect data on the amount of money spent bysecondary school students on textbooks.
Parameter –
a summary measure for the entire population.
Types of variables
Qualitative or Attributive
Measured with non-numerical scale
E.g.
Are you a Malaysian? The answer is only ‘
Yes
’ or ‘
No
Quantitative or Numerical
Measured on numerical scale
E.g.
How tall are you? The answer is
numericalDivide into 2 categories
1.
Discrete –
Numerical response which arises from a countingprocess.
E.g.
How many children do you have?
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