# Statistics for Managers using Microsoft Excel

6th Global Edition
Chapter 1 Introduction

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Learning Objectives In this chapter you learn:  How business uses statistics The basic vocabulary of statistics   How to use Microsoft Excel with this book Copyright ©2011 Pearson Education 1-2 .

Why Learn Statistics Make better sense of the world  Make better business decisions  Internet articles / reports Magazine articles Newspaper articles Television & radio reports Business memos Business research Technical journals Technical reports       Copyright ©2011 Pearson Education 1-3 .

presenting and analyzing data Inferential Statistics Using data collected from a small group to draw conclusions about a larger group Copyright ©2011 Pearson Education 1-5 . Descriptive Statistics Collecting. summarizing.Two Different Branches Of Statistics Are Used In Business Statistics The branch of mathematics that transforms data into useful information for decision makers.

These Two Branches Are Used In The Important Activities  To summarize business data  Descriptive methods used to create charts & tables Inferential methods used to reach conclusions about a large group based on data from a smaller group  To draw conclusions from business data   To make reliable forecasts about business activities  Inferential methods used to develop. and improve the accuracy of predictive models Involves managerial approaches like Six Sigma 1-6  To improve business processes  Copyright ©2011 Pearson Education . quantify.

Tables and graphs  Characterize data  e. Survey  Present data  e.g.Descriptive Statistics  Collect data  e..g. The sample mean Copyright ©2011 Pearson Education 1-7 ..g..

.g.g. Estimate the population mean weight using the sample mean weight e.Inferential Statistics  Estimation  e. Copyright ©2011 Pearson Education 1-8 . Test the claim that the population mean weight is 120 pounds  Hypothesis testing  Drawing conclusions about a large group of individuals based on a smaller group..

universally accepted meanings that are clear to all associated with an analysis.Basic Vocabulary of Statistics VARIABLES Variables are a characteristics of an item or individual and are what you analyze when you use a statistical method. Copyright ©2011 Pearson Education 1-9 . OPERATIONAL DEFINITIONS Data values are meaningless unless their variables have operational definitions. DATA Data are the different values associated with a variable.

STATISTIC A statistic is a numerical measure that describes a characteristic of a sample. Copyright ©2011 Pearson Education 1-10 .Basic Vocabulary of Statistics POPULATION A population consists of all the items or individuals about which you want to draw a conclusion. The population is the “large group” SAMPLE A sample is the portion of a population selected for analysis. The sample is the “small group” PARAMETER A parameter is a numerical measure that describes a characteristic of a population.

Sample Population Sample Measures used to describe the population are called parameters Copyright ©2011 Pearson Education Measures used to describe the sample are called statistics 1-11 .Population vs.

This Book Is Organized To Show The Four Uses Of Statistics  To summarize business data (Chapters 2 & 3) To draw conclusions from business data (Chapters 4 – 12) To make reliable forecasts about business activities (Chapters 13 – 16) To improve business processes (Chapter 18) 1-12    Copyright ©2011 Pearson Education .

inferential statistics Copyright ©2011 Pearson Education 1-13 .Chapter Summary In this chapter. we have  Introduced the basic vocabulary of statistics and the role of statistics in turning data into information to facilitate decision making  Examined the use of statistics to:  Summarize data  Draw conclusions from data  Make reliable forecasts  Improve business processes  Examined descriptive vs.

or otherwise. in any form or by any means.All rights reserved. photocopying. Copyright ©2011 Pearson Education 1-14 . mechanical. stored in a retrieval system. recording. or transmitted. Printed in the United States of America. electronic. without the prior written permission of the publisher. No part of this publication may be reproduced.