UNIVERSITY OF VOCATIONAL

TECHNOLOGY

Assignment
Business Statistics I (MS10307)

A.G.A. SHAHAN
IM/21/B2/20
INDUSTRIAL MANAGEMENT IN TECHNOLOGY
2022-11-15
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.

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

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 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.
(ii) Estimate the number of defective parts for a line speed of 80 feet per minute.