This action might not be possible to undo. Are you sure you want to continue?

)

**MBA 611 STATISTICS AND QUANTITATIVE METHODS
**

Part I. A. Review of Basic Statistics (Chapters 1-11) Introduction (Chapter 1)

Uncertainty: Decisions are often based on incomplete information from uncertain events. We use statistical methods and statistical analysis to make decisions in uncertain environment. Population: Sample: A population is the complete set of all items in which an investigator is interested. A sample is a subset of population values.

& Example: Population - High school students - Households in the U.S. Sample - A sample of 30 students - A Gallup poll of 1,000 consumers - Nielson Survey of TV rating Random Sample: A random sample of n data values is one selected from the population in such a way that every different sample of size n has an equal chance of selection.

& Example: Random Selection - Lotto numbers - Random numbers Random Variable: A variable takes different possible values for a given subject of study.

Numerical Variable: A numerical variable takes some countable finite numbers or infinite numbers. Categorical Variable: A categorical variable takes values that belong to groups or categories. Data: Data are measured values of the variable. There are two types of data: quantitative data and qualitative data.

1

Part I (Chapters 1 – 11) Quantitative Data: Qualitative Data: & Example: 1. 2. 3. 3. 4. 5. 6. 7. 8. Statistics: Quantitative data are data measured on a numerical scale. Qualitative data are non-numerical data that can only be classified into one of a group of categories.

Temperature Height Age in years Income Prices Occupations Race Sales and Advertising Consumption and Income Statistics is the science of data. This involves collecting, classifying, summarizing, analyzing data, and then making inferences and decisions based on the data collected. The numerical measures of a population are called parameters.

Population Parameters:

& Example: Population average. Sample Statistics: The numerical measures of a sample are called sample statistics.

& Example: Sample average. Descriptive Statistics: Descriptive statistics summarizing data. involves collecting, classifying, and

Inferential Statistics:

Inferential statistics makes statistical inference about the population parameters based on sample information.

Business Decisions: From time to time, we use quantitative analysis to make business decisions. & Example: Economics: Price of a Good, Interest Rate, Mortgage Rate Finance: Returns, Stock Prices Marketing: Advertising, Sales Management: Quality Control

2

Descriptive Statistics (Chapters 2 and 3) B.08 7/25 = 0. 149) Freq.28 8/25 = 0. & Example: Sale Prices The following data represent sale prices (in thousands of dollars) for a random sample of 25 residential properties sold. 129) (130.32 5/25 = 0. 109) (110.1 Relative Frequency Histogram The relative frequency histogram shows the proportions of the total set of data values that fall in various numerical intervals.1 Describing Data Sets Graphically (Chapter 2) The simplest way to describe data is to use graphs. Class i 1 2 3 4 5 6 Sum Class Limits (30. B.04 1 3 .1. 36 63 72 84 106 59 129 95 77 36 106 74 72 68 148 50 82 57 101 94 63 84 76 65 112 42 65 74 89 109 50 66 76 94 112 57 68 77 95 129 59 71 82 101 148 Organize the data and construct the following relative frequency distribution table. 66 89 71 109 42 Sort the data.Part I (Chapters 1 – 11) B. 49) (50. The following shows two types of graphs: frequency histogram and line graph.08 1/25 = 0.20 2/25 = 0. 69) (70. ( f i ) 2 7 8 5 2 1 25 Relative Frequency 2/25 =0. 89) (90.

6 0.5 0.31 ≈ 2.9 -1. The width is equal to 20.1 5.5 69.1 1.8 0.5 109. the number of classes & Example: Sale Prices Width = 148 − 36 = 18. 1. 0.6 − (− 4.4 Then Width = 1. The data are classified into 6 classes.5 -0. The graph shows the midpoints of these classes on the horizontal axis.7 9.5 .5 Sale Price In this graph.5 89.4 0.1 3. 4.1 1 0.3) = 2. Each class has the same width. The vertical bar shows the relative frequency of sale prices falling in each class interval.9 -4. 3.1 0 49.6 3.6 0. 6 O Exercise: The following data are year-to-day (YTD) returns for a sample of 30 mutual funds. 2.6 9.2 0.8 -1 1 2.5 -0.2 0.5 0.5 129.3 0. 6 4 .the smallest number .1 2. How to decide the class width: Relative Frequency Width = the largest number .5 0.5 149.9 -0.2 0.7 -4.4 5.3 3 -1.67 ≈ 20 .Part I (Chapters 1 – 11) The relative frequency histogram is Relative Frequency 0.

Class Limits (-5. Check AAnalysis ToolPak@ to install the add-in from Microsoft Office CD. Select Histogram.9. (If Data Analysis is not on the list. 5.6 Organize the data and construct the following relative frequency distribution table.3 0.1 0. Bin range contains upper boundary of interval.2 0. 4.6 2.1 0. -2.7 0. click OK.8 -0. 2.5 0.9 3. ( f i ) Relative Frequency Textbook Exercises: 2. click ATools@ and AAdd-Ins@. 2.9 3.7 -1 0.1 0.Part I (Chapters 1 – 11) Sort the data as the following: -4. Delete (using Edit) last row called More.00. pages 22-23.1 0. click OK.8.50.5 1.51) (-2. Complete dialog box: Input range contains data. 5 . 2. Click on Tools. 2.5. Click on Data Analysis.5 -1.4 -0.5 0.6 2.01) Freq.6. Class i 1 2 3 4 5 6 Sum Draw a relative frequency histogram.6 1.2 1 5. Excel: Create a Histogram 1.9 5.4 -1.5 1 9.8 3 -0.1 -4.) 3. -0.

pages 30-31. The line graph for the temperatures is Temperature 80 Temperature 75 70 65 Monday Tuesday Wedn. 6 02 . 2.2 Line Graph (Time Plot) A line graph is graphic representation for a time series. Time series are data collected at different time period. Thursday Friday Date & Example: The line graph of IBM stock price is IBM Stock Price 14000 12000 10000 8000 6000 4000 2000 0 80 82 84 86 88 90 92 94 96 98 00 Price Date Textbook Exercises: 2.22-2. pages 22-23.39.Part I (Chapters 1 – 11) B. & Example: The following data are daily high temperatures from Monday through Friday: 70 74 72 78 75.29.35-2.1.

5 Notation: Sum and Mean Suppose there is a collection of n data values. . And X = ∑x i =1 n i n . These values are represented by x1 . & Example: Calculate the mean of the following daily high temperatures: 70 74 72 78 75.8 . B.1 Mean (Average) The mean of a collection of n data values is the sum of the data values divided by n. Sample Mean. Category (X) axis labels contains the values of date or time. Click Next and complete the rest steps. Click on Chart. range. x 2 . x n . we use mean.1) To describe data sets numerically. B.2 Measures of Central Tendency (Section 3. 7 . In Chart-Wizard Step 1: Select Line and the top-left line chart. 3. 4. Values contains data.Part I (Chapters 1 – 11) Excel: Create a Line Graph 1. In Chart-Wizard Step 2: Click Series tab. x 2 .K .2. and standard deviation. The mean is equal to ∑x i =1 n i n . 2. The sum of these values is denoted as ∑x i =1 n i . x n is denoted as X . click Next. The mean is 70 + 74 + 72 + 78 + 75 = 73. Click on Insert. X The mean of a sample of n data values x1 . median. K.

Textbook Exercises: 3. If the data values of x are represented by x1 . Calculate the mean. pages 50-51.2. then the population variance is defined as μ= ∑x i =1 N i N . x 2 . & Example: Calculate the median of the following daily high temperatures: 70 74 72 78 75. x N . The sorted data are 70 72 74 75 78. B. K .Part I (Chapters 1 – 11) O Exercise: Prices of product A Suppose the prices of product A in the past five months are 6 4 2 3 5.2 Median The median of a collection of data values is the data value in the middle position for sorted data. Answer: Population Mean. μ The mean of a population is denoted as μ .11.1-3. The median is 74. 8 .

Sample Variance. The variance of a collection of data values is defined to be the average of the squares of the deviations of the data values about their mean. & Example: Sale Prices for Residential Properties Calculate the range. The range is 148 . xn is defined as ∑ (x n 2 s = i =1 i − X) 2 n −1 . Calculate the mean and the variance.3.1 Range The range of a collection of data values is the difference between the largest and the smallest values.Part I (Chapters 1 – 11) B.2 Variance and Standard Deviation The variance is used to measure the variation of the data values from its mean. The range is 78 . K.70 = 8.36 = 112.3.2) B. & Example: Prices of product A Suppose the prices of product A in the past five months are 6 4 2 3 5. x2 . s 2 The variance of a sample of n data values x1 . & Example: Calculate the range of the following daily high temperatures: 70 74 72 78 75.3 Measures of Variability (Section 3. The range is B. O Exercise: YTD Returns Calculate the range. 9 .

5 −1 Alternative Formula: A shortcut formula to compute s 2 is 2 s (∑ x ) − n × (X ) = 2 i 2 n −1 .4 = -1 5-4=1 0 (deviation)2 (xi − X )2 4 0 4 1 1 10 1 2 3 4 5 Sum 6 4 2 3 5 20 The sample mean is X = 20 = 4. 5 10 The sample variance is s 2 = = 2.4 = -2 3 . Use a shortcut formula to compute the sample variance. 10 .5 . & Example: Prices of product A Suppose the prices of product A in the past five months are 6 4 2 3 5.Part I (Chapters 1 – 11) i xi deviation xi − X 6-4 =2 4-4=0 2 .

4 2 O Exercise: Prices of product B Suppose the prices for product B in the past five months are 3 7 5 4 1. 5 2 xi 6 4 2 3 5 20 xi2 36 16 4 9 25 90 (∑ x ) − n × (X ) = 2 i 2 n −1 90 − 5 × 4 = 2.5 .Part I (Chapters 1 – 11) i 1 2 3 4 5 Sum The sample mean is X = The sample variance is s = 20 = 4. i xi xi2 1 2 3 4 5 Sum The sample mean is The sample variance is 3 7 5 4 1 20 11 . Calculate the sample mean and the sample variance.

x N and the mean μ . The sample standard deviation is Population Variance σ 2 and Population Standard Deviation σ The population variance is denoted as σ 2 . x 2 . O Exercise: Prices of Product B Calculate the sample standard deviation. and standard deviation σ are population parameters. population variance is defined as σ2= ∑ (x i=1 n i . For a population with the data values of x1 . pages 59-60. K . Population mean μ . variance s 2 .μ )2 N . s s = s2 . Textbook Exercises: 3. 3.14.58 .20-3. Note: Sample mean X . variance σ 2 .5 = 1.12-3. The population standard deviation is σ = σ2 . 12 .Part I (Chapters 1 – 11) Standard Deviation The standard deviation of a collection of data values is equal to the square root of their variance. Sample Standard Deviation. & Example: Prices of Product A The sample standard deviation is s = 2. and standard deviation s are sample statistics.25.

Part I (Chapters 1 – 11) B. A normal distribution has a kurtosis of three. skewness equals zero. 4 s 13 .658795 112 36 148 2025 25 B. Column1 Mean Standard Error Median Mode Standard Deviation Sample Variance Kurtosis Skewness Range Minimum Maximum Sum Count 81 5.4. The measure of sample skewness is defined as 1 (xi − X )3 ∑ skewness = n .@ The measure of sample kurtosis is defined as 1 (xi − X )4 ∑ Kurtosis = n .5833 0. If a distribution is symmetric. Hence. When skewness has a large negative value indicates a long left tail. A kurtosis above three indicates Afat tails.46853 700. 3 s When skewness has a large positive value indicates a long right tail. B. & Example: Sale Prices The data set has a positive skewness.1 Skewness The skewness measures the amount of asymmetry in a distribution or in a relative frequency histogram.4.2 Kurtosis The kurtosis is a measure of the thickness of the tails of its distribution (or relative frequency histogram) relative to those of a normal distribution. the more asymmetric is the distribution.4 Skewness and Kurtosis We use skewness and kurtosis to show the shape of distribution. the distribution has a long right tail.488226 0. the larger the absolute size of the skewness statistic.293707 76 #N/A 26.

9-3. 14 . select Summary statistics.4.12 0.6.849036 13.687699 7.) 3. click ATools@ and AAdd-Ins@. Select Descriptive Statistics.223724 2.6 30 Textbook Exercises: 3. 2.6 33. 4. 3.87748 0.490704 0.3 9. Excel: Descriptive Statistics (See Appendix) 1.85 0.Part I (Chapters 1 – 11) & Exercise: YTD Returns Column1 Mean Standard Error Median Mode Standard Deviation Sample Variance Kurtosis Skewness Range Minimum Maximum Sum Count 1. 3.9 -4. Click on Data Analysis. Click on Tools. Check AAnalysis ToolPak@ to install the add-in from Microsoft Office CD. Output range contains the starting cell with descriptive statistics. Complete dialog box: Input range contains data.6 2. click OK. (If Data Analysis is not on the list. pages 50.11. Click OK. 51.

1 Random Variables and Normal Distribution (Sections 5. There are two types of random variables. & Example: Age in years .Discrete random variable Income . These probability distributions are useful in statistical inference.3) Random Variables (Section 5.Discrete Temperature . 6. x2 . 6. Usually.Continuous Growth rates . there are two usages of random variables. Random Variables for Statistical Analysis: Some random variables have interesting probability distributions. Random Variables for a Population: We can use a random variable to represent different possible data values for a population. & Example: The random variable Z has a standard normal distribution. x n ) . Discrete Random Variable: Continuous Random Variable: A discrete random variable takes some countable number of values.Part I (Chapters 1 – 11) C.K .1. Random Variable: A random variable is a variable that takes on numerical values determined by the outcome of a random experiment. Then different data values of sale price can also be represented by ( x1 .1-5. One is discrete random variable and the other is continuous variable.3. C.1) Random Experiment: A random experiment is a process leading to two or more possible outcomes with uncertainty as to which outcome will occur. The population mean is denoted as μ X and the population standard deviation is σ X . This random variable has a probability distribution. A continuous random variable is a random variable taking values on a line interval. & Example: The sale price can be represented by a variable X .Continuous Height .Discrete Prices .Continuous 15 .

The mean of x is also called the expected value of X . The properties of P(x) are a. 5.2.2 μ x = ∑ x P(x ) .Part I (Chapters 1 – 11) C. The values and the probabilities of Χ are x P(x ) 3 4 5 6 Mean and Standard Deviation The mean of a discrete random variable X is 0.4 0. b.3) The probability distribution of a random variable X is denoted as P(x) . ∑ P(x ) = 1 . The variance of a discrete random variable X is 2 σ2 x = ∑ ( x − μ x ) P( x ) .2 Discrete Random Variable (Sections 5. P(x ) ≥ 0 .1 0. 16 . & Example: New Products Suppose the number of new products introduced each year is a random variable X .3 0. E (Χ ) = ∑ x P ( x ) .

3 0.3 1.3 0. x P(x ) x × P(x ) x − μx ( x − μ x )2 ( x − μ x ) 2 × P ( x ) 2.2 1 0.4 0.84 = 0.4 The mean is μ x = 4.56 0. and standard deviation. variance.96 0.6 .9165 .6 -0.048 0.256 0.1 Calculate the mean.2 4. The values and the probabilities of X are x P(x ) 0 1 2 3 0. The variance is σ x The standard deviation is σ x = 0.36 0.4 1. 2 = 0.Part I (Chapters 1 – 11) & Example: New Products Calculate the mean and standard deviation.1 0. 17 . O Exercise: Returned Checks Suppose the number of returned checks in a day for a department store is a random variable X .16 1.392 0.6 1.144 0.4 0.6 0.84 .2 0.5 1.6 -1.84 3 4 5 6 Sum 0.

1 The standard deviation is Alternative Formula for Calculating Variance: A shortcut formula to compute σ 2 x is 2 2 σ2 x = (∑ x P ( x )) − μ x .2 0.6 1.9 6.1 0.5 1.4 0.3 0. 18 .4 0. & Example: New Products x 3 4 5 6 Sum The variance is P(x ) x × P(x ) x 2 2 x P( x ) 0.4 7.84 .3 0.Part I (Chapters 1 – 11) P(x ) x × P(x ) x x − μx ( x − μ x )2 ( x − μ x )2 × P ( x ) 0 1 2 3 Sum The mean is The variance is 0.2 4.3 1.0 2 2 2 σ2 x = (∑ x P ( x )) − μ x = 22 − 4.5 7.6 = 0.2 22.6 9 16 25 36 0.2 1 0.

2 0.1-5.29. The spread of the distribution is determined by the standard deviation σ . Total area under f (x ) is one.4 0. c.1 Textbook Exercises: 5.1 Normal Distribution (Section 6.3) The probability distribution of a random variable X can be denoted as f ( x ) . pages 136. b ) is denoted as P (a < x < b ) .1.3 Continuous Random Variable (Sections 6. One of the most commonly used continuous random variable is normal random variable. c.25-5. b. The probability distribution has a bell-shaped. C.21. It is the area under the curve f ( x ) between a and b. 6. pages 148-150.3 0. a.3. The distribution is symmetric about its mean μ .Part I (Chapters 1 – 11) O Exercise: Returned Checks x 0 1 2 3 Sum 2 The variance is σ X = P(x ) x × P(x ) x 2 2 x P( x ) 0. 8. 5. C. Any normal random variable X with mean μ and standard deviation σ can be standardized as a standard normal random variable. 137.3) Normal Random Variable and Normal Probability Distribution A normal random variable with a normal probability distribution has the following properties: a. Z= X −μ σ . 5. d. b.8. 19 . The probability distribution of X has the following properties: f (x ) ≥ 0 .3.15-5. The probability of x falling within an interval (a.

76 ) = 0. O Exercise: P (0 < Z < 1. P (0 < Z < 1. P (− 1. P ( Z < 0 ) = 0 .2 ) = 0.76 < Z < 0 ) = 0. Find P (a < Z < 0 ) .28 < Z < 0 ) = P (− 2. Using Standard Normal Probability Distribution Table Case 1.Part I (Chapters 1 – 11) Standard Normal Random Variable A standard normal random variable is a normal random variable with mean zero and standard deviation one.76 ) = 0.3849 = 0.3849 .64 ) = P (0 < Z < 1.3849 .33 < Z < 0 ) = Case 3.5 .2 < Z < 0 ) = 0. & Example: P (Z < −1. P (Z < −1. & Example: P (0 < Z < 1.4608 = 0.96 ) = Case 2.1151 .5 .0392 . The probability table for standard normal random variable shows the probability of P (0 < Z < a ) . & Example: P (− 1. P ( Z > 0 ) = 0 .5 − 0. 20 .2 ) = 0.5 − 0. O Exercise: P (− 1. Find P (0 < Z < a ) .4608 .4608 . Find P(Z < a ) .

64 ) = P (Z < −1. The probability P (0 < Z < a ) is given.96 ) = P (Z > 1.84 . O Exercise: P(0 < Z < a ) = 40% . Find P(Z > a ) . & Example: P (0 < Z < a ) = 30% .64 from the table.64 ) = P (Z . The probability P(Z > a ) is given.5 − 0.45. find a . Find the value of a. Find the value of a. we find a = 1.Part I (Chapters 1 – 11) Note: We denote the cumulative probability as F (a ) .76 ) = 0. & Example: P (Z > 1. The point a locates on the right-hand side of origin and P(0 < Z < a ) = 0. such that F (a ) = P(Z < a ) . With the given probability 0. O Exercise: P (Z < −1. P (Z > 1. 21 .96 ) = Case 4.28) = P(Z > 2.5 − 0. What is a ? From the table.1151 . > 1.4608 = 0.33) = Case 5. What is a? Case 6. O Exercise: P (Z > 1.3849 = 0. a = 0. & Example: P(Z > a ) = 5% .2 ) = 0.5 − 0.45 .05 = 0.0392 .

Then random variable X −μ is a standard normal random variable. 6. 6.31 ab.20 abc. Z= σ b−μ⎞ ⎛a−μ <Z< P(a < X < b ) = P⎜ ⎟. 6. what is the probability that its lifetime will be between 900 and 1.100 units? Answers: Textbook Exercises: 6. O Exercise: Anticipated consumer demand for a product next month can be represented by a normal random variable with mean 1. 22 .37 ab. 6.000 and 1.24 abc.26.22 abd.17. 6. 6.3849 + 0.10 . If we choose a light bulb at random. Also. σ ⎠ ⎝ σ & Example: A company produces light bulbs whose life follows a normal distribution with mean 1.300 hours? Answers: ⎛ 900 − 1200 X − 1200 1300 − 1200 ⎞ P(900 < X < 1300) = P⎜ < < ⎟ 250 250 250 ⎝ ⎠ = P(− 1. b. 6. 6.21 abc.35 ab. 6. What is the probability that sales will be between 1.300 units? What is the probability that sales will exceed 1. find a . 6.Part I (Chapters 1 – 11) O Exercise: P(Z > a ) = 0. Answer: Textbook Exercises:6. page 207. pages 208-210.36a. 6.2 < Z < 0.200 hours and standard deviation 250 hours.1554 = 0.18.200 units and standard deviation 100 units.19 abc. Probabilities for Normal Random Variables Let X be a normal random variable with mean μ and variance σ 2 . 6.27 a.23 ab.5403 .25.4 ) = 0. a. 6.

528 2.025 t.571 2.3. α = 0.05 t . 4. The shape of probability distribution depends on a constant. t distribution is close to the standard normal distribution.015 1.086 1. For α = 0.228 2.Part I (Chapters 1 – 11) C. t Statistical Table The table shows the value of tα .96 3.753 1. the values of tα for different v are v t .645 2.131 2. the degrees of freedom (v). When v is large. such that P(t > tα ) = α .025 . Symmetrical about t = 0 . and α = 0.01 .01 5 10 15 20 ∞ 2.725 1. 5. The probability distribution has tails that are more spread out than the standard normal distribution.764 2. Properties of 1. 3.365 2. t -distribution: Bell-shaped.05 . 2.3) Student's t Distribution ( t -distribution) Let t be a random variable with t -distribution.602 2.2 Student=s t Distribution (Section 8.326 23 .812 1.

258.Part I (Chapters 1 – 11) & Example: Find the value a such that. P(t > a ) = 0. Answer: 24 . P(t > a ) = 0.025 when v = 15 . O Exercise: Find the value a such that. a. c. P(t < a ) = 0. b. P(t > a ) = 0. P(t > a ) = 0. a. c: a = 2.05 when v = 10 .025 when v = 10 .015 .01 when v = 5 . b. P(t < a ) = 0. c.01 when v = 20 . Answer: a: a = 2. b: a = −2.228 .05 when v = 5 .

- Assignment 7
- Unit-5 Location (RH C8 Pg 330-335)
- Unit-5 Location (RH C8 Pg 330-335)
- 9) M3TECH - Contact Center
- 4) M3TECH - Mobile Marketing
- 2) m3tech - Sms Gateway
- 3) M3TECH - Mobile Banking
- TCRM 10-20 Questions
- C TCRM20 70 Sample Questions Final
- CRM Webui Slow
- Iggys Bread of the World
- TAW11 1 Abap Unicode
- Project Charter - Template
- Project Charter - Template
- UNDER STANDING WITH METHS
- Statistics Haris Ahmed.pdf
- sapnote_0000932779

Sign up to vote on this title

UsefulNot usefulSTAATICS INFORMATION

STAATICS INFORMATION

- Statistics Notes
- Lecture Notes Statistics
- STATISTICS NOTES
- Research Methods
- Personality
- Psychology-chapter
- Nervous System
- Personality Psychology
- Trait Theory
- Introductory Statistics for the Behavioral Sciences Presentation - Chapters 1 & 2
- Instrumental Conditioning
- Chapter 1.Research Methods
- Trait
- Research Methodology
- Research Methods
- Psychology
- Experimental Research
- Experimental research
- Research Methods
- Chapter 2- Biological Basis of Human Behavior
- Experimental Research
- Army Basic Statistics
- Fundamental of Research Methodology and Statistics
- Research Methodology
- Chapter 4 Statistics
- ENGR 371 Final Exam April 1996
- New Microsoft Word Document
- Slide Notes 2 Up
- Sol s10ex2 en p6
- Probability Normal Distribution
- STATISTICS

Are you sure?

This action might not be possible to undo. Are you sure you want to continue?

We've moved you to where you read on your other device.

Get the full title to continue

Get the full title to continue reading from where you left off, or restart the preview.

scribd