ONE WORD

Learning Objectives :

1. Define statistics
2. Distinguish between descriptive and inferential statistics
3. Differentiate parametric and statistic
4. Compare and contrast the sources of data
5. Differentiate constant and variable
6. Identify and explain the types of data
7. Classify variables as discrete and continuous
8. List and describe the four levels of measurement
 Nature of Statistics
DEFINITIONS

STATISTICS
➢ It is concerned with scientific method of collecting,
organizing, summarizing, presenting and analyzing data
as well as drawing valid conclusions and making
reasonable decisions on the basis of such analysis.
➢ A branch of science that examines and investigates ways
to process and analyze the data gathered.
➢ It provides procedure in data collection, presentation,
organization, and interpretation to have meaningful idea
that is useful to decision-makers.
 Nature of Statistics
Nature of a Statistical Study

STEPS :
1. Formulation of the problem
2. Objectives of the study
3. Determining sources of data
4. Designing data collection forms
5. Conducting the field survey
6. Organizing the data
7. Analyzing the data
8. Reaching statistical findings
9. Presentation of findings
 Nature of Statistics
IMPORTANCE OF STATISTICS IN BUSINESS

1. Statistical quality control methods

2. Personnel management
3. Seasonal behavior
4. Export marketing
5. Maintenance of cost records
6. Management of inventory
7. Expenditure on advertising and sales
8. Mutual funds
9. Relevance in banking and insurance institution
 Nature of Statistics
MISUSE OF STATISTICS

1. Sources of Data not given

2. Defective data
3. Unrepresentative sample
4. Inadequate sample
5. Unfair comparisons
6. Unwarranted conclusions
7. Confusion of correlation and causation
8. Suppression of unfavorable results
9. Mistakes in arithmetic
 Nature of Statistics
DIVISION OF STATISTICS

1. Descriptive Statistics : the totality of methods and

treatments employed in the collection, description, and
analysis of numerical data.
2. Inferential Statistics : the logical process from a sample
analysis to a generalization or conclusion about the
population.
 Nature of Statistics
Parameter vs Statistic
Parameter : a numerical index describing a characteristic of a
population
Statistic : a numerical index describing a characteristic of a sample

Sources of Data
1. Primary data : data that come from an original source, and are
intended to answer specific research questions.
2. Secondary data : data that are taken from previously recorded data,
such as information in research conducted, industry financial
statements and government reports.
Constant and Variable
1. Constant : characteristic of objects, people, or events that does not
vary.
2. Variable : characteristic of objects, people, or events that can take of
different values.
 Nature of Statistics
Types of Data

1. Qualitative Variable : variable that is conceptualized and

analyzed as distinct categories, with no continuum implied.
2. Quantitative Variable : variable that is conceptualized and
analyzed along a continuum implied.

Classification of Variables
A. Experimental Classification
1. Independent Variable : variables controlled by the experimenter and
expected to have an effect on the behavior of the subjects.
2. Dependent Variable : measure of the behavior of subjects and
expected to be influenced by the independent variable.
B. Mathematical Classification
1. Continuous Variable : values are generally expressed as any fractional
point.
2. Discrete Variable : values are generally expressed as an integer.
 Nature of Statistics
Levels of Measurement
1. Nominal
➢ It is mutually exclusive and exhaustive meaning.
➢ it is used to differentiate classes or categories for purely classification.
Examples : Gender
2. Ordinal
➢ used in ranking.
➢ Example : Student class designation

3. Interval
➢ used to classify order and differentiate between classes or categories in
terms of degrees of differences.
➢ Example : Temperature
4. Ratio
➢ it has true zero point.
➢ Example : Weight
 Nature of Statistics

Characteristics of Levels of Measurement

Level of Properties
Measurement
1. Nominal Indicates a distinction
2. Ordinal Indicates a distinction
Indicates the direction of the distinction
3. Interval Indicates a distinction
Indicates the direction of the distinction
Indicates the amount of distinction
4. Ratio Indicates a distinction
Indicates the direction of the distinction
Indicates the amount of distinction
Indicates an absolute zero
Determine whether each of the following is nominal, ordinal,
interval, or ratio.
1. Postal Code number
2. Military ranks
3. Temperatures measured in Kelvin scale.
4. Nationality of certain individuals
5. Beauty contest winners
6. Weight of students in public elementary schools.
7. Intelligence quotient of employees
8. Salaries of the top ten CEOs in Makati City
9. Ranking of tennis players
10.Courses offered in university belt.
11. Ages of companies in Makati Business Club Members

Telen, Rhea Mae T. Business Statistics

Learning Objectives :

1. Identify and explain the sampling techniques.

2. Discuss the methods of collecting and presenting data.
 SAMPLING

• A sample is “a smaller (but hopefully

representative) collection of units from a
population used to determine truths about that
population” (Field, 2005)
• Why sample?
– Resources (time, money) and workload
– Gives results with known accuracy that can be
calculated mathematically
• The sampling frame is the list from which the
potential respondents are drawn
– Registrar’s office
– Class rosters
– Must assess sampling frame errors
 25
SAMPLING BREAKDOWN
SAMPLING…….

STUDY POPULATION

SAMPLE

TARGET POPULATION

26
 Nature of Statistics
Sampling Techniques

A. Random Sampling
➢ a process whose members had an equal chance of being
selected from the population.
➢ It is also called probability sampling.

1. Simple Random Sampling

➢ a process of selecting n sample size in the population via

random numbers or through lottery.
 Nature of Statistics
2. Systematic Sampling

➢ a process of selecting a kth element in the population until the

desired number of subjects or respondents is attained.

Example :
1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30
 Nature of Statistics

3. Stratified Sampling

➢ a process of subdividing the population into subgroups and

drawing members at random from each subgroup .

Example :
Given the population of a certain university and a target
sample population of 5,455, determine the sample size of
each subgroup or courses.
 Nature of Statistics
Continuation…

Example :
Given the population of a certain university and a target sample
population of 5,455, determine the sample size of each
subgroup or courses.
Field of Specialization Population
Nursing 500
Accountancy 6,000
Management 2,000
Marketing 1,000
Education 2,500
Total 12,000
 Nature of Statistics
4. Cluster Sampling

➢ A process of selecting clusters from a population which is very

large or widely spread out over a wide geographical area.
➢ It is also known as area sampling.
 Nature of Statistics
B. Non-Random Sampling
➢ A sampling procedure where samples selected in a deliberate
manner with little or no attention to randomization
➢ It is also called non-probability sampling.

1. Convenience Sampling

➢ A process of selecting a group of individuals who are available

for study.
Example :
A researcher may only include close friends and clients to be
included in the sample population.
 Nature of Statistics
2. Purposive Sampling

➢ a process of selecting based from judgment to select a sample

which the researcher believed, based on prior information, will
provide the data they need.

Example :
A human resource director interviews the qualified applicants in
a supervisory position.
 Nature of Statistics
3. Quota Sampling

➢ Applied when an investigator survey collects information from

an assigned number from one of several sample units fulfilling
certain prescribed criteria.

Example :

When the respondents are composed of men aged over 30

or 20 people who have bought cellular phone buyers they
select.
 Nature of Statistics

4. Snowball Sampling

➢ A technique in which one or more members of a population

are located and used to lead the researchers to other members
of the population.
 Nature of Statistics
Methods of Collecting Data

1. Direct Method : It is a face-to-face encounter between the

interviewer and the interviewee.
2. Indirect Method : This method utilized questionnaires to
obtain information.
3. Registration Method : This method of gathering information is
governed by laws.
4. Observation Method : This method is used to data that are
pertaining to behaviors of an individual.
5. Experiment Method : This is used to determine the cause and
effect relationship of certain phenomena under controlled
conditions.
I. Consider the following population frame of 30 students.
1 2 3 4 5 6 7 8 9
10 11 12 13 14 15 16 17
18 19 20 21 22 23 24 25
26 27 28 29 30
Determine the samples if we choose 8 samples from the frame which
randomly start at student number 11.
II. Obtain a sample size allocation given the following groups of respondents and their
corresponding population size. ( n = 100 )
Respondents Population size Sample Size Percentage
Distribution
First Year 125
Second Year 100
Third Year 75
Fourth Year 150
Fifth Year 50
N = 500
 Nature of Statistics
Data Presentation
Two types of statistical presentation of data - graphical and
numerical.

Graphical Presentation: We look for the overall pattern and for

striking deviations from that pattern. Over all pattern usually
described by shape, center, and spread of the data. An individual
value that falls outside the overall pattern is called an outlier.

Bar diagram and Pie charts are used for categorical variables.

Histogram, stem and leaf and Box-plot are used for numerical
variable.
 Data Presentation –Categorical Variable
Bar Diagram: Lists the categories and presents the percent or count
of individuals who fall in each category.
Figure 1: Bar Chart of Subjects in Treatment Frequency Proportion Percent
Treatm ent Groups Group (%)

30
Number of Subjects

1 15 (15/60)=0.25 25.0
25
20
15 2 25 (25/60)=0.333 41.7
10
5
3 20 (20/60)=0.417 33.3
0
1 2 3
Total 60 1.00 100
Treatm ent Group
 Data Presentation –Categorical Variable

Pie Chart: Lists the categories and presents the percent or count of
individuals who fall in each category.
Figure 2: Pie Chart of Treatment Frequency Proportion Percent
Subjects in Treatment Groups Group (%)

1 15 (15/60)=0.25 25.0
25% 2 25 (25/60)=0.333 41.7
33% 1
2 3 20 (20/60)=0.417 33.3

3 Total 60 1.00 100

42%
 Graphical Presentation –Numerical Variable
Histogram: Overall pattern can be described by its shape, center,
and spread. The following age distribution is right skewed. The
center lies between 80 to 100. No outliers.
Mean 90.41666667
Figure 3: Age Distribution
Standard Error 3.902649518

16 Median 84
14 Mode 84
Number of Subjects

12 Standard Deviation 30.22979318

10
Sample Variance 913.8403955
8
Kurtosis -1.183899591
6
4 Skewness 0.389872725
2 Range 95
0 Minimum 48
40 60 80 100 120 140 More
Maximum 143
Age in Month
Sum 5425
Count 60
Graphical Presentation –Numerical Variable
Box-Plot: Describes the five-number summary
Figure 3: Distribution of Age
160
140
120
q1
100 min
80 median
60 max
q3
40
20
0
Box Plot
1