Welcome in Business Statistics: Class

FACULTY OF ECONOMICS
Welcome In
Business Statistics
Class
Reference Book: Introduction to Statistical Theory Part-1
Course Outline
Introduction to Statistics
• Introduction
• Area of Statistics Ch ap
• Basic Terminologies 01 te r
#
• Function and Limitations
• Primary and Secondary Data
• Collection Methods
Presentation of Data
•Introduction Ch
a
02 pter
•Frequency Distribution #
•Cumulative and Relative frequency
•Class-marks and Class-limits
•Graphical Representation
Measure of Central Tendency

Ch
•Introduction 03 a pte r
#
•Types of Central Tendency
Measure of Dispersion
•Introduction Ch ap
04
•Types of Dispersion t e r#
Correlation and Regression

•Introduction Ch
0 a p ter
•Types of correlation 5
#
•Correlation coefficient
•Regression
Interpolation and Extrapolation

Ch
•Introduction a p
06 te r
•Numerical Solutions #
Probability Distribution
•Introduction
•Types of Probability Cha p
07
•Properties of Probability t e r#
•Binomial and Poisson Distribution
Chapter#
01
Introduction to
Statistics
Source: Introduction to Statistical Theory Part-1; chapter#1
Statistics
The word Statistics basically derived
from the Latin word “STATUS” which
means useful information.
Following are the ages of Students

32 21 35 23 48 23 24 25
25 26 26 51 26 65 27 28
28 28 28 29 44 29 29 30
30 30 49 46 31 31 31 45
21 34 35 21 35 36 36 37
49 38 50 39 41 42 42 42
43 43 43 29 44 44 44 31
45 31 47 48 23 48 30 49
37 50 38 26 51 27 72
Age in Years Number of Students
20-29 23
30-39 21
40-49 21
50-59 4
60-69 1
70-79 1
Statistics
Descriptive Inferential
Descriptive Statistics
Descriptive Statistics includes the methods and procedures
used in the collection of data, organization of data ,
Summarization of data and expressing the data into various
form such as Tables, Graphs ,Charts , Diagrams, Averages
and other measures which would describe the data.
Descriptive Statistics
3
Types
Frequency Distribution Summary Stats
Graphical Representations
Frequency Distribution
Graphical Representation
Summary Stats
The Average Age is 36.07

Inferential statistics
Inferential Statistics deals with procedures used to
make inferences (predictions) about larger group
from information contained in a small group.
Basic Terminologies
Data Parameter
Population Statistic
Sample Variable
Sampling Types of Variable
Data
“The information which we get from experiments or
through survey is called data.”
OR
“Any numerical recording of observations is called

data.”
Population
The complete set of individuals, objects or scores of
interest.
The aggregate or Totality of certain elements of interest is
called population.
For Example: Total number of students in a college , Total
number of chairs in a class room etc.
Sample
The small part of population is called sample.
For Example : If we select 10 students from a class
containing 50 students then the 10 students is
known as sample while 50 students is known as
population.
Sampling
The process or device of selecting a sample from population is called
Sampling.
For Example: In a grain market , if a customer takes a handful of
wheat to check the quality of that lot, Then the small selected part is
called sample and the process of selection is called Sampling.
Parameter
Those numerical quantities which
are calculated from population data are
called Parameter. Parameters are
Represented by GREEK letters
Statistic
Those numerical quantities which
are calculated from sample data are called
Statistic. Statistic is Represented by ROMAN
(English) letter.
Variable
A number, or quantity that increases or
decreases over time, or takes different values in
different situations.
For Example: income, age, weight, Height etc.
Types Of Variable
Qualitative Variable:
Categorical variables take on values that are names or labels.
The color of a ball (e.g., red, green, blue) or the breed of a dog
(e.g., collie, shepherd, terrier) would be examples of categorical
Gender Place of birth Eye color
variables.
Quantitative Variable:
Quantitative variables are numerical. They
represent a measurable quantity. In algebraic equations,
quantitative variables are represented by symbols (e.g., x,
Age Weight of a letter Temperature
y, or z).
Types of Quantitative Variable

Discrete Variable
If the quantitative variable can take only finite or countable
number of values, then such Variable is called discrete Variable.
For Example: A five question test is given to a class. Let X be the
number of correct answers a student gets. The possible values of X
are 0, 1, 2, 3, 4, and 5; only 6 possibilities, and it is a finite
number. Therefore, X is a discrete variable.
Continues Variable
The quantitative variable that can take all the
possible values within a range is called continues
Variable, then such Variable is called continues Variable.
For Example: A person's weight can be lies between

From 75kg to 85kg.
Functions Of Statistics
CONDENSATION
COMPARISON
ESTIMATION
FORECASTING
CONDENSATION
Generally speaking by the word ‘ to condense’, we
mean to reduce or to lessen. Condensation is
mainly applied at embracing the understanding of a
huge mass of data by providing only few
observations.
COMPARISON
Classification and tabulation are the two
methods that are used to condense the
data. They help us to compare data
collected from different sources.
ESTIMATION
The process of finding numerical value is
called Estimation. There are two types of
estimation. "Point estimation” and
“Interval estimation”
FORECASTING
By the word forecasting, we mean to predict or to
estimate before hand. In business forecasting plays a
dominant role in connection with production, sales,
profits etc. The analysis of time series and regression
analysis plays an important role in forecasting.
Limitations Of Statistics
Statistics does not study the qualitative
phenomenon.
Statistics does not study individuals.
Statistical laws are not exact.
Statistics does not study the

qualitative phenomenon
Since statistics is basically a science and deals with a set
of numerical data, it is applicable to the study of only these
subjects of enquiry, which can be expressed in terms of
quantitative measurements. As a matter of fact, qualitative
phenomenon like honesty, poverty, beauty, intelligence etc,
cannot be expressed numerically.
Statistics does not study individuals

Statistics does not give any specific
importance to the individual items, in fact it
deals with an aggregate of objects. Individual
items, when they are taken individually do not
constitute any statistical data and do not serve
any purpose for any statistical enquiry.
Statistical laws are not exact

It is well known that mathematical and
physical sciences are exact. But statistical laws
are not exact and statistical laws are only
approximations. Statistical conclusions are not
universally true. They are true only on an
average.
DATA
Primary Secondary
Primary Data
Data that have been originally collected
(raw data) and have not been applied any
statistical or mathematical tool on such
collected data is called Primary data.
Secondary Data
Those data which have been already
collected and analyzed by someone and have
been applied any statistical or mathematical
tool on primary data at least once are called
Secondary Data.
Methods Of Collecting Primary Data

Direct personal investigation.
Indirect personal investigation.
Investigation Through Mailed questionnaire
Investigation Through Mailed questionnaire
in charge of Enumerators.
Direct personal investigation

In this method the investigator collects
information directly from the informants. These
information are highly accurate, reliable and
useful. But this method is slow and expensive
and therefore is suitable only for small scale.
Indirect personal investigation

Some time informants face hesitation and refuse to give
direct answers to the investigator. Then information's are
collected either by putting the informants some indirect
questions or by interviewing several third parties who
know the informants very well. This method save time and
money but the collected information's are not 100%
correct because the data is collected by the third person.
Investigation Through Mailed

Questionnaire
In this method a standard list of questions is
prepared which is directly related to the purpose of
inquiry. This list is known as Questionnaire and is
sent to the informants and requesting them to return
it back to the investigator after answering all the
given questions. This method is fairly cheep.
Investigation Through Mailed

questionnaire in charge of Enumerators
In this method the information is collected
by employing trained enumerators who
assist the informants in making the entries in
the questionnaire correctly. This method
gives the most reliable information if the
enumerator is well trained.
Collection of Secondary Data

we collect Secondary data by official
sources (Ministry of finance, Agriculture,
Industry etc) by Semi-official sources (State
Bank, Board of economic inquiry) and
through local bodies.
Why Study Statistics?

For reducing large masses of data to
manageable forms and for allowing us to
draw conclusions from those data.
Statisticians are needed in government,
education, science, social science,
medicine, engineering, and finance.

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FACULTY OF ECONOMICS

Measure of Central Tendency

Correlation and Regression

Interpolation and Extrapolation

Following are the ages of Students

Age in Years Number of Students

Frequency Distribution Summary Stats

The Average Age is 36.07

“Any numerical recording of observations is called

Types of Quantitative Variable

For Example: A person's weight can be lies between

Statistics does not study the

Statistics does not study individuals

Statistical laws are not exact

Methods Of Collecting Primary Data

Direct personal investigation

Indirect personal investigation

Investigation Through Mailed

Investigation Through Mailed

Collection of Secondary Data

Why Study Statistics?

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