Statistics in Business

Dr. Ahmed Abdulrazzaq Mohammed

Department of Data Science & Information
Technology -UT
 contents
 Chapter (1): Introduction in Statistics
 Chapter (2): Measures of the center of the
data
 Chapter (3): Measures of the variation
 Chapter (4): Measures of skewness
 Chapter (5): Analysis of correlation &
regression
 Chapter (6): Introduction in theory of
probability
 Chapter (7): Introduction in Estimation &
Hypothesies tests

by/Dr.Ahmed abdulrazzaq Mohammed

 LECTURE (1)
Introduction in statistics
 :Definition OF Statistics
Definition: Science of collection, presentation,
analysis, and reasonable interpretation of
data for make decisions
Parts of statistics:
1-Descriptive statistics
2- Inferential statistics

by/Dr.Ahmed abdulrazzaq Mohammed

Descriptive Statistics
Descriptive Statistics: Graphical and numerical
procedures to summarize and process data
 When the researcher needs to
summarize or describe the distribution
of a single variable
 When the researcher wishes to
understand the relationship between two
or more variables

by/Dr.Ahmed abdulrazzaq Mohammed

Inferential Statistics
 Inferential Statistics: Using data to make
predictions, forecasts, and estimates to assist
decision making
 Wish to generalize findings from a sample to
a population
 Population – total collection of all cases that
the researcher wishes to understand better
 Includes using information from samples
(carefully chosen subsets of the defined
populations) to make inferences about
populations
by/Dr.Ahmed abdulrazzaq Mohammed
Population vs. Sample

Values calculated using Values computed from

population data are called sample data are called
parameters statistics
by/Dr.Ahmed abdulrazzaq Mohammed
variables
Variables

by/Dr.Ahmed abdulrazzaq Mohammed

 Types of Data
Raw data:
It is a single observations
Example : x= 2,2,3,5,6,7,…….

Grouped data:
It is a data classified in Frequency Distributions table
Example:
Class Frequency center of class

12-21 4 0.18
22-31 6 0.27
32-41 5 0.23
sum
by/Dr.Ahmed abdulrazzaq Mohammed
Tabulating Numerical Data:
Frequency Distributions
1- Find Range :R=XMAX. – XMIN.
2- Select Number of Classes(M): 5 (usually between 5 and 15)
M= 1+3.3322* log (n) ; where n= sample size
3- Compute Class Length (Width) L:
L= R /M
 Determine Class Limits
L:Lower Limit of first class is smallest values in data
U: Upper Limit of last class is largest values in data
L:Lower Limit for any class = Lower Limit of previous class +L
U: Upper Limit for any class =Upper Limit of previous class -1
U: Upper Limit for any class =
 Compute Class Mid points:
X=U+L/2
 Count Observations & Assign to Classes

by/Dr.Ahmed abdulrazzaq Mohammed

Frequency Distributions, Relative Frequency
Distributions and Percentage Distributions
 Example(1) find the Frequency Distribution
of following data
xi = 12, 13, 17, 21, 24, 24, 26, 27, 27, 30, 32, 35, 37, 38, 41, 43,
44, 46, 53, 58,60,62
Solation
1- calculate the range(R)
R= 52-12=50
2- compute number of classes(m)
m=1+3.322*log(n)
m=1+3.322*log(22)
m= 5.45 ≅5
by/Dr.Ahmed abdulrazzaq Mohammed
3- calculate Length of class (L)
L= R / m
L= 50/5=10
3- Count Observations & Assign to Classes in
the frequency Distributions table
Class Frequency Class Mid point

12-21 4
16.5
22-31 6
26.5
32-41 5
36.5
42-51 3
46.5
52-62 4
56.5
sum 22

by/Dr.Ahmed abdulrazzaq Mohammed

 Cumulative frequency
 Increasing Cumulative frequency(CF )
1- Determine limits of classes as (less than
upper limit class)
 2- fixing of a first frequency of a first class
 3- Add a first frequency with second
frequency …et al
Example :2,3,4,6
CF =2,5,9,14

by/Dr.Ahmed abdulrazzaq Mohammed

 Decreasing Cumulative frequency(CF
)
1- Determine limits of classes as (lower limit
class & more )
 2- fixing of a last frequency of a last class
 3- Add a last frequency with pre- frequency
…et al
Example :2,3,4,6
CF =6,10,13,14

by/Dr.Ahmed abdulrazzaq Mohammed

 Example (1): find Increasing &Decreasing
Cumulative frequency of following the
frequency Distributions table
Class f Less than CF LL& CF
UL MORE

12-21 4
Less than 21 4 12&more 22
22-31 6
Less than 31 10 12&more 18
32-41 5
Less than 31 15 12&more 12
42-51 3
Less than 41 18 12&more 7
52-62 4
Less than 62 22 12&more 4
sum 22

by/Dr.Ahmed abdulrazzaq Mohammed