BBA Business Statics-

Course Outline

Business Statics Definition:

Business
statistics takes the data analysis tools
from elementary statistics and applies
them to business. For example,
estimating the probability of a defect
coming off a factory line, or seeing
where sales are headed in the future

Descriptive Statistics:
A descriptive statistic is a summary statistic that quantitatively describes or summarizes
features from a collection of information, while descriptive statistics is the process of using and
analyzing those statistics.

Inferential Statistics:
Statistical inference is the process of using data analysis to infer properties of an
underlying distribution of probability. Inferential statistical analysis infers properties of a
population, for example by testing hypotheses and deriving estimates.

Data Definition:
Data are individual pieces of factual information recorded and used for
the purpose of analysis. It is the raw information from which statistics are created.
Statistics are the results of data analysis - its interpretation and presentation. ...
Often these types of statistics are referred to as 'statistical data'

Data Array And Frequency Distribution:

 A Frequency array is an array of frequencies according to variate
values, that is to say, a frequency distribution. The term “array” is often used for the
individual frequency distributions which form the separate rows and columns of a
bivariate frequency table.

Cumulative Frequency Distribution Definition:

A cumulative frequency distribution is a summary of a set of data showing
the frequency (or number) of items less than or equal to the upper class limit
of each class.
A cumulative frequency distribution gives the total number of values that fall below the
upper boundary of each class.

Graphical Representation:
Graphic representation is another way of analyzing numerical data. A graph
is a sort of chart through which statistical data are represented in the form of lines or
curves drawn across the coordinated points plotted on its surface. Graphs enable us
in studying the cause and effect relationship between two variables.

Pie Chart:
 A pie chart (or a circle chart) is a circular statistical graphic, which is divided
into slices to illustrate numerical proportion. In a pie chart, the arc length of each
slice (and consequently its central angle and area), is proportional to the quantity it

represents.

Frequency Bar Chart:

A bar graph is used to compare the frequency of a category or
characteristic with that of another category or characteristic. The bar height (if
vertical) or length (if horizontal) shows the frequency for each category or
characteristic.

Frequency Histogram:

A frequency histogram is a graph with vertical columns that represent the
frequency of a data point or range of data points occurring in a set of data. It's a
really useful tool we can use to visualize a data set and make it easier to understand.
Frequency Polygon:
A frequency polygon is a visual representation of a distribution. The visualization tool
is used to understand the shape of a distribution. Essentially, the frequency polygon indicates the
number of occurrences for each distinct class in the dataset.

Ogive:
In statistics, an ogive, also known as a cumulative frequency polygon, can refer to one of
two things: any hand drawn graphic of a cumulative distribution function any empirical cumulative
distribution function.
Mid Value:
The average of the upper limit and lower limit is called as mid value.
It is Calculated By This Formula

Magnitude Of Class-intervals:
The Difference Between the upper limit and lower limit of the class. Intervals is known
as magnitude of class-interval.

Class Limit:
The Class limit refers to the highest and lowest value that can be included in the class.
Highest limit is known as upper limit and lowest limit is known as lowest limit.
i.e: If interval’s is 30-40 the lower limit is 30 and upper limit is 40.

Two-Way Classification:
When Classification is done according to two variables it is called Two-way classification.

One-Way Classification:
When classification is done considering only one variable it is called one way
classification.

Quartiles
In statistics, Quartiles are the set of values which has three points dividing the data set into four
identical parts. We ordinarily deal with a large amount of numerical data, in stats. There are
several concepts and formulas, which are extensively applicable in various researches and
surveys.  One of the best applications of quartiles is defined in box and whisker plot.
Quartiles are the values that divide a list of numerical data into three quarters. The middle part of
the three quarters measures the central point of distribution and shows the data which are near to
the central point. The lower part of the quarters indicates just half information set which comes
under the median and the upper part shows the remaining half, which falls over the median. In
all, the quartiles depict the distribution or dispersion of the data set.

Quartiles Definition
Quartiles divide the entire set into four equal parts. So, there are three quartiles, first, second and
third represented by Q , Q  and Q , respectively. Q  is nothing but the median, since it indicates
1 2 3 2
the position of the item in the list and thus, is a positional average. To find quartiles of a group of
data, we have to arrange the data in ascending order.
In the median, we can measure the distribution with the help of lesser and higher quartile. Apart
from mean and median, there are other measures in statistics, which can divide the data into
specific equal parts. A median divides a series into two equal parts. We can partition values of a
data set mainly into three different ways:

1. Quartiles
2. Deciles
3. Percentiles

Quartiles Formula
Suppose, Q  is the upper quartile is the median of the upper half of the data set. Whereas, Q  is
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the lower quartile and median of the lower half of the data set. Q  is the median. Consider, we
2

have n number of items in a data set. Then the quartiles are given by;
Q  = [(n+1)/4]th item
1

Q  = [(n+1)/2]th item
2

Q  = [3(n+1)/4]th item
3

Hence, the formula for quartile can be given by;

Where, Qr is the r  quartile

th

l  is the lower limit

1

l  is the upper limit

2

f is the frequency
c is the cumulative frequency of the class preceding the quartile class.
Quartiles in Statistics
Similar to the median which divides the data into half so that 50% of the estimation lies below
the median and 50% lies above it, the quartile splits the data into quarters so that 25% of the
estimation are less than the lower quartile, 50% of estimation are less than the mean, and 75% of
estimation are less than the upper quartile. Usually, the data is ordered from smallest to largest:

 First quartile: 25% from smallest to largest of numbers

 Second quartile: between 25.1% and 50% (till median)
 Third quartile: 51% to 75% (above the median)
 Fourth quartile: 25% of largest numbers
Quartile Deviation
You have learned about standard deviation in statistics. Quartile deviation is defined as half of
the distance between the third and the first quartile. It is also called Semi Interquartile range. If
Q  is the first quartile and Q  is the third quartile, then the formula for deviation is given by;
1 3

Quartile deviation = (Q3-Q1)/2

Interquartile Range
The interquartile range (IQR) is the difference between the upper and lower quartile of a given
data set and is also called a midspread. It is a measure of statistical distribution, which is equal
to the difference between the upper and lower quartiles. Also, it is a calculation of variation
while dividing a data set into quartiles. If Q  is the first quartile and Q  is the third quartile, then
1 3

the IQR formula is given by;

IQR = Q3 – Q1
Quartiles Examples
Question 1: Find the quartiles of the following data: 4, 6, 7, 8, 10, 23, 34.
Solution: Here the numbers are arranged in the ascending order and number of items, n = 7
Lower quartile, Q  = [(n+1)/4] th item
1

Q = 7+1/4 = 2nd item = 6

1

Median, Q  = [(n+1)/2]th item

2

Q = 7+1/2 item = 4th item = 8

2

Upper Quartile, Q  = [3(n+1)/4]th item

3

Q  = 3(7+1)/4 item = 6th item = 23

3

Question 2: Find the Quartiles of the following age:-

23, 13, 37, 16, 26, 35, 26, 35
Solution:
First, we need to arrange the numbers in increasing order.
Therefore, 13, 16, 23, 26, 26, 35, 35, 37
Number of items, n = 8
Lower quartile, Q = [(n+1)/4] th item
1 

Q  = 8+1/4 = 9/4 = 2.25th term

1

From the quartile formula we can write;

Q  = 2nd term + 0.25(3rd term-2nd term)
1

Q = 16+0.25(23-26) = 15.25
1

Similarly,
Median, Q  = [(n+1)/2]th item
2

Q  = 8+1/2 = 9/2 = 4.5

2

Q  = 4th term+0.5 (5th term-4th term)

2

Q = 26+0.5(26-26) = 26
2

And,
Upper Quartile, Q  = [3(n+1)/4]th item
3

Q  = 3(8+1)/4 = 6.75th term

3

Q  = 6th term + 0.75(7th term-6th term)

3

Q  = 35+0.75(35-35) = 35
3