Statistics for Management and

Research

Chapter 1

Introduction

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 Learning Objectives

In this chapter you learn:

 What is statistics

 The basic vocabulary of statistics

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 In Business and Research,
Statistics Has Many Important Uses
 To summarize data

 To draw conclusions from data

 To make reliable forecasts

 To improve decision processes

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 Two Different Branches
Of Statistics
Statistics
The branch of mathematics that transforms data into
useful information for decision makers and researchers.

Descriptive Statistics Inferential Statistics

Collecting, summarizing, Using data collected from a

presenting and analyzing data small group to draw conclusions
about a larger group

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 Descriptive Statistics

 Collect data
 e.g., Survey

 Present data
 e.g., Tables and graphs

 Characterize data
 e.g., The sample mean

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 Inferential Statistics
 Estimation
 e.g., Estimate the population
mean weight using the sample
mean weight
 Hypothesis testing
 e.g., Test the claim that the
population mean weight is 120
pounds

Drawing conclusions about a large group of

individuals based on a smaller group.

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 Basic Vocabulary of Statistics

VARIABLES
Variables are a characteristics of an item or individual and are what you
analyze when you use a statistical method.

DATA
Data are the different values associated with a variable.

OPERATIONAL DEFINITIONS
Data values are meaningless unless their variables have operational
definitions, universally accepted meanings that are clear to all associated
with an analysis.

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 Basic Vocabulary of Statistics
POPULATION
A population consists of all the items or individuals about which
you want to draw a conclusion.

SAMPLE
A sample is the portion of a population selected for analysis. The
sample is the “small group”

PARAMETER
A parameter is a numerical measure that describes a characteristic
of a population.

STATISTIC
A statistic is a numerical measure that describes a characteristic of
a sample.

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 Population vs. Sample

Population Sample

Measures used to describe the Measures used to describe the

population are called parameters sample are called statistics

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 This course Is Organized To Show
Two Uses Of Statistics

 To summarize data (Chapters 2 & 3)

 To draw conclusions from data (Chapters 4 –

10)

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