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Data Analysis -Methods Descriptive Statistics

•Descriptive statistics •Collect data

• Collecting, summarizing, and presenting data • e.g., Survey
• Measures of Central Tendency & Measures of Dispersion, Skewness-Kurtosis

•Inferential statistics •Present data

• Drawing conclusions about a population based only • e.g., Tables and graphs
on sample data •Characterize data
• Parametric and non-parametric test

• e.g., Sample mean = X i

n
Chap 1-12 Chap 1-13

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LO : Identify the ratio,

interval, ordinal, and
nominative scales of
measurement.
Ratio, Interval, Ordinal, and Nominative Scales of
Inferential Statistics Measurement

• Estimation Measurement: A way to assign a value of a variable to the element

• e.g., Estimate the population mean
weight using the sample mean • Nominative or Nominal
weight
• Hypothesis testing • Ordinal
• e.g., Test the claim that the
• Interval
population mean weight is 120
pounds
• Ratio

Drawing conclusions about a population based on

sample results.
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LO LO
The Marketing Research Case: The Form and
Qualitative Variables
the Data (ordinal measure)

• Nominative: A qualitative variable for which there is no meaningful

ordering, or ranking, of the categories
• Example: gender, car color

• Ordinal: A qualitative variable for which there is a meaningful

ordering, or ranking, of the categories
• Example: teaching effectiveness

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Figure 1.4 and Table 1.6

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1
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LO LO
Quantitative Variables
Ratio Measurement
Interval Measurement

• Can only meaningfully compare values by the interval between them • All the characteristics of interval plus…
• Cannot compare values by taking their ratios
• “Interval” is the arithmetic difference between the values
• Measurements are on a numerical scale with a meaningful
zero point. (True Zero exists)
• Zero means “none” or “nothing”
• Example: temperature (True Zero doesn’t exist)
• 0 F means “cold,” not “no heat”
• Values can be compared by their intervals and ratios
• 60 F is not twice as warm as 30 F • $30 is $20 more than $10
• Marks secured by a student • $0 means no money
• In business and finance, most quantitative variables are ratio
variables, such as anything related to money
• Examples: Earnings, profit, loss, age, distance, height

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Scales of Measurement Levels of Measurement

and Measurement Scales
Data Differences between Highest Level
measurements, true Ratio Data
zero exists (Strongest forms of
Categorical Quantitative measurement)

Differences between
measurements but no Interval Data
true zero
Numeric Non-numeric Numeric Higher Levels
Ordered Categories
(rankings, order, or Ordinal Data
scaling)
Nominal Ordinal Nominal Ordinal Interval Ratio

Categories (no Lowest Level

ordering or direction) Nominal Data (Weakest form of
measurement)

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Levels of Measurement
and Measurement Scales
EXAMPLES:

Differences between Height, Age, Weekly

Ratio Data measurements, true
Food Spending
zero exists

Differences between Temperature in

Interval Data measurements but no Fahrenheit, Standardized
true zero exam score

Service quality rating,

Ordered Categories
Ordinal Data (rankings, order, or scaling) Standard & Poor’s bond
rating, Student letter
grades

Categories (no ordering Marital status, Type of car

Nominal Data or direction) owned

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