Emerson University Multan

BBA 2nd Semester

Business Statistics
 Air University Multan
Capmus
Who am I?

Aftab Khan Khakwani

MSc(Statistics) Silvermedlist, MBA(MIS) [BZU]
MPhil( Financial Economics)[Newcastle, UK]
Email:Green.aftab@gmail.com

5/9/2022 Business Statistics

BBA 2nd Semester
Business Statistics

5/9/2022 Business Statistics

BBA 2nd Semester
 STATISTICS AS A SCIENCE

INTRODUCTION
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GENERAL OBJECTIVES
At the end of this chapter, you are expected to:
1. Trace the brief historical development of statistics;
2. State the nature and scientific definition of
statistics;
3. Meanings of Business Statistics
4. Explain the uses and importance of business
statistics:
5. Enumerate and differentiate the types of Statistics;
6. Types of Data:
7. Types of Variables:
8. Scale of Measurement:
9. Notations:
History of Statistics
◼ Italian word statista ("statesman" or "politician").
◼ Knowledge of kings
◼ Uses for military operations
◼ Science of state
◼ By the 18th century, the term "statistics"
designated the systematic collection of
demographic and economic data by states.
◼ In the early 19th century, the discipline concerned
with the collection, summary, and analysis of data.

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BBA 2nd Semester
 Definition of Statistics

◼ Statistics is the science of dealing with

numbers.
◼ It is used for collection, summarization,
analysis and presentationof data.
◼ Statistics is the science of the collection,
organization, and interpretation of data
◼ Can be define as 3 ways
– Firstly as singular sense
– Secondly as plural Business
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sense Statistics
BBA 2nd Semester
– Thirdly as technical sense
Meanings and importance of Business
Statistics

◼the science of good decision making in

the face of uncertainty.
◼Uses in Financial analysis, econometrics,
auditing, production and operations
including services improvement, and
marketing research , HR etc.
◼Eyes of Business man

◼Can be use or abuse or misuse

Types of Statistics

◼ Descriptive Statistics
(describing or summering the data)

◼ Inferential Statistics
(make inferences from data)

◼ Sample –estimates

◼ Population -Parameters
Descriptive Statistics
• According to the Bureau of the Census, there are 2.2 million U.S. households
with a single father and one or more children younger than 18.
• There have been 82 confirmed or suspected suicides among active-duty service
personnel this year, compared to 51 for the same period in 2008.
• The number of mutual funds peaked at 8305 in 2001, but the combination
of bear markets and mergers and acquisitions has driven the number of funds
down to 8011.
• Since March 4, 2009, there have been 190,000 mortgage modifications through
President Obama’s relief plan; 396,724 homes in payment default; and 607,974
homes in either foreclosure or auction proceedings.

Inferential Statistics
• In observing a sample of nurses and other healthcare workers who were likely
infected with the swine flu, researchers found that only half routinely wore
gloves when dealing with patients.
• In a Zagat survey of diners, Outback Steakhouse had the top-rated steaks in the
full-service restaurant category.
• Survey results revealed that 26% of thirsty golfers order a sports drink when they
finish their round and head for the clubhouse.
• In a survey of U.S. motorists, 33% said their favorite American roadside store
was South of the Border, in South Carolina.
Types Of Data

1. Primary Data
a) -Raw data is a term for data collected on source which has not been subjected to processing or any other
manipulation.
b) Data observed or collected directly from first-hand experience.
c) Original data compiled and studied for a specific purpose. For example
d) data that has not been previously published, i.e. the data is derived from a new or original research study and
collected at the source.
e) Information collected firsthand from such sources as historical documents.

◼ Secondary Data
a) Secondary data is data collected by someone other than the user. Common sources of secondary data for social
science include censuses, surveys etc.
b) Data already gathered for one use that is then utilized for another purpose. For example, a person researches
income distribution using data collected by the Department of Commerce.
c) Organised data

Types of Data
◼ Numeric data (Quantitative data)
◼ Can be measurable .

◼ Categorical Data ( Qualitative data)

The data is split into categories that describe qualities or
characteristics.

The key thing to remember with qualitative data is that

the data values can’t be interpreted as numbers.
 Variable
can change its value place to place or person to person

◼ Types of Variables

◼ Qualitative Variable
◼ a variable that expresses a qualitative attribute or quality;
values do not have a numerical meaning and cannot be ordered
numerically., hair colour, favorite music, or gender

◼ Quantitative Variable
quantitative variables are variables measured on a numeric
scale. Height, weight, response time,

- Discrete Variable
A variable that assumes only values in a discrete set.

-Continuous Variable
a variable that takes all possible values b/w a interval

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◼ Scale of Measurement
◼ (the process of assigning a numerical value to a variable is called
measurement)

◼ Four Scales
◼ -Nominal level
◼ A nominal-scale variable that is coded to assume only one of two
possible outcomes. For example, a person is considered either
employed or unemployed. Infect, they are instead numbers used to
differentiate objects. Real world examples of these variables are
common. The numbers are just labels. So, social security numbers,
the channels on your television, and sports team jersey’s are all
good examples of nominal variables.
◼ -Ordinal level
◼ Ordinal scales use numbers to put objects in order. No other
information other than more or less is available from the scale. A
good example is class rank, or any type of ranking. Someone
ranked at four had a higher GPA than someone ranked as five, but
we don’t know how much better four is than five.
◼

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◼ -Interval level
◼ Interval scales contain an ordinal scale (objects are in order), but
have the added feature that the distance between scale units is
always the same. Examples include temperature (in Fahrenheit or
Celsius), or altitude. For temperature you know that the difference
in ten degrees is the same no matter how hot or cold it might

◼ -Ratio Level
◼ – Ratio scales contain an interval scale (equal intervals between units
on the scale), but have the added feature that there is a true zero
point on the scale. This zero point is necessary for ratio statements
to have meaning. Examples include height or weight or measures of
amount of time. Notice that it is not valid to have a measure below
zero on any of these scales. Something could not weigh a negative
amount. These scales are much more common than interval scale.
– in order to make ratio statements such as something is twice or
half of another then it must be a variable on a ratio scale.
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◼ Notation
◼ Summation 
◼ product ∏
◼ Rules for Notation