Topic -7

BUSINESS STATISTICS

Where data ca be presented in numerical form, statistical methods are best availed of. Statistics
involves the manipulation of numbers, the results of which give more meaning and status to
research findings. It is the science of assembling, characterizing and interpreting collection of
data.

Statistical investigation may be descriptive or inferential.

In descriptive statistics, the analysis is confined exclusively to the data gathered. It provide
simple summaries about the sample and the measures. Example: Graphic analysis – graphs are
used to summarize data, Tabular description where data are summarized in Tables. The steps in
descriptive statistic include the collection of data, classification of data, summarizing data and
presentation of data, where after t which, you proceed to analysis through inferential statistics.

Inferential statistics or statistical inference constitutes the drawing of generalization from

numerical information available from sample group to a large group, from which information
has not been obtained.

Concepts in statistics and measurements

A. Terminologies in statistics
Population – It is the large collection of objects, persons, places, or things and is usually
represented by “N’ Example: In Ermita, there are a total of 1,000 household. The total
1,000 is the populations.
Sample – It is a portion or a small part of the population termed as sub-group, subset or
representative of the population. Example: 300 household out of 1,000
Parameter It is any numerical or nominal characteristics of a population. A value or
measurement obtained from a population. Example in the 1,000 households , the
average monthly income obtained is the parameter.
Statistic It is an estimate of the parameter. Any value or measurement obtained from a
sample.
Data – Are facts or a set of information or observations under study. Here are two (2)
categories of data. 1. Quantitative data – which is numerical in nature obtained from
counting and measuring . 2. Qualitative which assume values that manifest the concepts
of attributes. Sometimes referred as categorical data.
 Variable- It is a characteristic or property of a population or sample which make the
members different from each other. Example: The class is composed of single and
married individuals, then the civil status is a variable in the class.

B. Level of measurement
Measurement means assignment of numerals to objects and phenomena according to
accepted rules. Data generated though several methods or instruments have to be
measured n terms of scales.
1. Nominal scale
2. Ordinal scale
3. Interval scale
4. Ratio scale

C. Tabular and Graphical Portrayal of group measurements

Use of tables and graph presentation.

Descriptive Statistical Tools

1. Frequency distribution
2. Ratio and Ranking

Measures of Central Tendency

The first thing a researcher does when he receives the data is to compute for the measure of
central tendency. It usually synonymously used with the word “average”. An average is what is
common in a group or what is the norm of the group.

The purpose of obtaining the measures of central tendency is to be able to describe a

population of statistical measurement. The single number computed may be the mean, the
median , or the mode. This best represents the whole distribution.

MODE IS A NOMINAL AVERAGE. It is defined as the variable with the greatest frequency.

The MEDIAN - (MIDSCORE) is the point which divides the distribution in halves.
Measures of Variability or Scatter Significance /Measures of Dispersion

It is the extent to which the scores tend to scatter or spread above and below the average.

3 common measures of variability – (the larger they are, The greater the variability of scatter
of the scores.)

1. Range – the distance between the lowest and the highest scores plus one.
2. Quartile deviation - used when the measure of central tendency is the median.
3. Standard deviation –measure of central tendency is the mean.

STATISTICAL INFERENCE

It involves the drawing of generalizations from numerical information available from sample
groups to a large group, from which information has not been obtained. Inferential statistics are
statistical techniques used to infer the characteristics if the population based on the estimate of
a sample.

A research study may call for an estimate of some population descriptive of a statistical
measure such as total, mean, proportion, etc. from a sample. This area of statistical inference is
called estimation. Some studies may call for the testing of a hypothesis. A thesis, therefore, is
more valid and credible if levels of significance are used.