UNIVERSITY OF VOCATIONAL

TECHNOLOGY

Assignment
Business Statistics I (MS10307)

A.G.A. SHAHAN
IM/21/B2/20
INDUSTRIAL MANAGEMENT IN TECHNOLOGY
2022-11-18
Question 1
A. List and briefly explain five (5) limitations of Statistics.
1. Qualitative aspects are excluded.
Statistical methods cannot study phenomena that cannot be expressed, captured, or measured in
quantitative terms.

2. It does not deal with individual items:

Statistics by nature does not, cannot, and will never be able to take into account individual cases that aren’t
placed in relation to any other item. It renders them invisible by subjecting them to the tyranny of
aggregates, even though individual cases may be extremely important, informative, and impactful.

3. It does not depict the entire story of a phenomenon:

Most phenomena are affected by a number of factors, not all of which can be expressed quantitatively.
Therefore, it’s not possible to examine a problem statistically in all its manifestations and arrive at the
correct conclusions.

4. It is liable to be misused:
Statistics deals with numbers/figures, which can easily be misinterpreted by untrained people or misused by
unscrupulous persons. Either way, it’s very likely to be misused in most cases.

5. Its results are true only on an average:

Statistical results are not absolutely true and are not applicable to individual cases, even though they’re
derived as the average result of all the individuals forming the group.

B. ‘Diagrams help us to visualize the whole meaning of a numerical complexity at a single

glance’. Explain the above statement with an example.

Easy to understand – Diagrammatic data presentation makes it easier for a common man to
understand the data. Diagrams are usually attractive and impressive and many newspapers and
magazines use them frequently to explain certain facts or phenomena. Modern advertising campaigns
also use diagrams.

Simplified Presentation – You can represent large volumes of complex data in a simplified and
intelligible form using diagrams.

Reveals hidden facts – When you classify and tabulate data, some facts are not revealed.
Diagrammatic data presentation helps in bringing out these facts and also relations.

Quick to grasp – Usually, when the data is represented using diagrams, people can grasp it quickly.

Easy to compare – Diagrams make it easier to compare data.

Universally accepted – Almost all fields of study like Business, economics, social
institutions, administration, etc. use diagrams. Therefore, they have universal acceptability.

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C. ‘Tabulation of data is a very important method of presenting data in business
statistics’. Elaborate on the statement and describe different parts of a table.

 It is a table that helps to represent even a large amount of data in an engaging, easy to read, and
coordinated manner.
 The data is arranged in rows and columns. This is one of the most popularly used forms of
presentation of data as data tables are simple to prepare and read.
 The most significant benefit of tabulation is that it coordinates data for additional statistical treatment
and decision making. The analysis used in tabulation is of four types. They are:
a) Qualitative
b) Quantitative
c) Temporal
d) Spatial
 the objectives of tabulation:
a) To simplify the complex data
b) To bring out essential features of the data
c) To facilitate comparison
d) To facilitate statistical analysis
e) Saving of space
 the main parts of a table:
(1) Table number ● Table number is the very first item mentioned on the
top of each table for easy identification and further
reference.

(2) Title ● Title of the table is the second item that is shown just
above the table.
● It narrates the contents of the table, hence it has to be
very clear, brief, and carefully worded.

(3) Head note ● It is the third item just above the table and shown after
the title.
● It gives information about units of data like, ‘amount in
rupees or $’, “quantity in tonnes’, etc.

● It is generally given in brackets.

(4) Captions or Column headings ● At the top of each column in a table, a column
designation/head is given to explain the figures of the
column.
● This column heading is known as ‘caption’.

(5) Stubs or Row headings ● The title of the horizontal rows is known as ‘stubs’.

(6) Body of the table ● It contains the numeric information and reveals the
whole story of investigated facts. Columns are read
vertically from top to bottom and rows are read
horizontally from left to right.

(7) Source note ● It is a brief statement or phrase indicating the source of

data presented in the table.

(8) Footnote ● It explains the specific feature of the table which is not
self-explanatory and has not been explained earlier. For
example, points of exception if any.

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D. Explain the difference between the ‘Random (Probability) Sampling Method’ and ‘Nonrandom (Non-
probability) Sampling Method’.

 Sampling means selecting a particular group or sample to represent the entire population. Sampling methods
are majorly divided into two categories probability sampling and non-probability sampling.
 In the first case, each member has a fixed, known opportunity to belong to the sample, whereas in the second
case, there is no specific probability of an individual to be a part of the sample.

 For a layman, these two concepts are the same, but in reality, they are different in the sense that in probability
sampling every member of the population gets a fair chance of selection which is not in the case with non-
probability sampling.

 The significant differences between probability and non-probability sampling

1. The sampling technique, in which the subjects of the population get an equal opportunity to be selected as a
representative sample, is known as probability sampling. A sampling method in which it is not known which
individual from the population will be chosen as a sample is called nonprobability sampling.

2. The basis of probability sampling is randomization or chance, so it is also known as Random sampling. On the
contrary, in non-probability sampling randomization technique is not applied for selecting a sample. Hence it is
considered as Non-random sampling.

3. In probability sampling, the sampler chooses the representative to be part of the sample randomly, whereas, in
non-probability sampling, the subject is chosen arbitrarily, to belong to the sample by the researcher.

4. The chances of selection in probability sampling, are fixed and known. As opposed to non-probability sampling,
the selection probability is zero, i.e. it is neither specified not known.

5. Probability sampling is used when the research is conclusive in nature. On the other hand, when the research is
exploratory, nonprobability sampling should be used.

6. The results generated by probability sampling, are free from bias while the results of non-probability sampling
are more or less biased.

7. As the subjects are selected randomly by the researcher in probability sampling, so the extent to which it
represents the whole population is higher as compared to the nonprobability sampling. That is why
extrapolation of results to the entire population is possible in probability sampling but not in non-probability
sampling.

8. Probability sampling test the hypothesis but nonprobability sampling generates it.

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Question 2

A. What is the difference between regression analysis and correlation analysis?

 A statistical measure which determines the co-relationship or association of two quantities is known
as Correlation. Regression describes how an independent variable is numerically related to the
dependent variable.
 A statistical measure which determines the co-relationship or association of two quantities is known
as Correlation. Regression describes how an independent variable is numerically related to the
dependent variable.
 A statistical measure which determines the co-relationship or association of two quantities is known
as Correlation. Regression describes how an independent variable is numerically related to the
dependent variable.
 A statistical measure which determines the co-relationship or association of two quantities is known
as Correlation. Regression describes how an independent variable is numerically related to the
dependent variable.
 A statistical measure which determines the co-relationship or association of two quantities is known
as Correlation. Regression describes how an independent variable is numerically related to the
dependent variable.

B. In a manufacturing process, the assembly line speed (feet per minute) was thought to affect the
number of defective parts found during the inspection process. To test this theory, the managers
devised a situation in which the same batch was inspected visually at a variety of line speed. The
table below lists the collected data.
Line Speed X 20 30 40 50 60 70
Number of Defective Parts Found Y 21 22 15 14 12 16

(i) Estimate the regression equation that relates line speed to the number of defective parts
found.
Speed (X) Defective parts x -x ̅ y- y̅ (x -x̅)( y- y̅) (x -x̅)2 ŷ
(Y)
20 21 -25 4.3 -107.5 625 20.6
30 22 -15 5.3 -79.5 225 19
40 15 -5 -1.7 8.5 25 17.4
50 14 5 -2.7 -13.5 25 15.8
60 12 15 -4.7 -70.5 225 14.2
70 16 25 -0.7 -17.5 625 12.6
Σx = 270 Σy = 100 Σ = −280 Σ = 1750

∑x 270 Σy 100
x̅ = = = 45 y̅ = = = 16.6
n 6 n 6

Σ(x −x
̅)( y− y
̅)
β1 = = -280/1750= -0.16
Σ(x −x
̅)2

β0 = y̅- β1 x̅ = 16.6 − (-0.16 × 45) =23.8

Equation : ŷ = β0 + β1 𝑥
ŷ =23.8 + (-0.16)x
(ii) Estimate the number of defective parts for a line speed of 80 feet per minute.

ŷ =23.8 + (-0.16×80) = 11
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Question 3

Write short notes on any five (5) of the following.

(a) Scatter diagram and Trendline
(b) Source of data
(c) Inferential statistics
(d) Non-sampling errors
(e) Cross-sectional data and Time-series data
(f) Lorenz Curve
(g) Absolute measures and Relative measures

1. Source of data
 There are two sources of data in Statistics. Statistical sources refer to data that are collected for some official
purposes and include censuses and officially conducted surveys. Non-statistical sources refer to the data that
are collected for other administrative purposes or for the private sector.

2. Inferential statistics
 Inferential statistics are often used to compare the differences between the treatment groups. Inferential
statistics use measurements from the sample of subjects in the experiment to compare the treatment groups
and make generalizations about the larger population of subjects.

3. Non-sampling errors
 Non-sampling error refers to all sources of error that are unrelated to sampling. Non-sampling errors are
present in all types of survey, including censuses and administrative data.

4. Lorenz Curve
 The Lorenz curve is represented by a straight diagonal line, which represents perfect equality in income or
wealth distribution; the Lorenz curve lies beneath it, showing estimated distribution.

5. Absolute measures and Relative measures

 Absolute & relative dispersion are two different ways to measure the spread of a data set. They are used
extensively in biological statistics, as biological phenomena almost always show some variation and spread.

 Absolute measures includes range, quartile deviation, mean deviation and standard deviation

 Relative measures includes coefficient of range, coefficient of quartile deviation, coefficient of mean deviation
and coefficient of standard deviation.

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References :-

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beovercome#:~:text=Statistics%20deal%20with%20groups%20and,statistical%20results%20might%20be%20misl
eading.
 https://www.economicsdiscussion.net/statistics/8-main-limitations-of-statistics-explained/2321
 https://www.emathzone.com/tutorials/basic-statistics/limitations-of-statistics.html
 https://byjusexamprep.com/state-the-main-limitations-of-statistics-i
 https://www.sarthaks.com/1097770/diagrams-graphs-help-visualize-whole-meaning-numerical-complex-data-
single-glance-comment
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eng.htm#:~:text=Non%2Dsampling%20error%20refers%20to,including%20censuses%20and%20administrative%
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