Professional Documents
Culture Documents
and Economics
Anderson Sweeney Williams
Slides by
John Loucks
St. Edward’s University
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Chapter 1
Data and Statistics
1. Statistics
2. Applications in Business and Economics
3. Data
4. Data Sources
5. Descriptive Statistics
6. Statistical Inference
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or duplicated, or posted to a publicly accessible website, in whole or in part.
1. Statistics
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied
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or duplicated, or posted to a publicly accessible website, in whole or in part.
2. Applications in
Business and Economics
Accounting
Public accounting firms use statistical sampling
procedures when conducting audits for their clients.
Economics
Economists use statistical information in making
forecasts about the future of the economy or some
aspect of it.
Finance
Financial advisors use price-earnings ratios and
dividend yields to guide their investment advice.
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or duplicated, or posted to a publicly accessible website, in whole or in part.
Applications in
Business and Economics
Marketing
Electronic point-of-sale scanners at retail checkout
counters are used to collect data for a variety of
marketing research applications.
Production
A variety of statistical quality control charts are used
to monitor the output of a production process.
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or duplicated, or posted to a publicly accessible website, in whole or in part.
3. Data and Data Sets
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Elements, Variables, and Observations
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Data, Data Sets,
Elements, Variables, and Observations
Observation Variables
Element
Names Stock Annual Earn/
Company Exchange Sales($M) Share($)
Data Set
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or duplicated, or posted to a publicly accessible website, in whole or in part.
Scales of Measurement
Scales
Scales of
of measurement
measurement include:
include:
Nominal Interval
Ordinal Ratio
The
The scale
scale determines
determines thethe amount
amount of
of information
information
contained
contained in
in the
the data.
data.
The
The scale
scale indicates
indicates the
the data
data summarization
summarization and
and
statistical
statistical analyses
analyses that
that are
are most
most appropriate.
appropriate.
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied
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or duplicated, or posted to a publicly accessible website, in whole or in part.
Scales of Measurement
Nominal
Data
Data are
are labels
labels or
or names
names used
used to
to identify
identify an
an
attribute
attribute of
of the
the element.
element.
A
A nonnumeric
nonnumeric label
label or
or numeric
numeric code
code may
may be
be used.
used.
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied
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or duplicated, or posted to a publicly accessible website, in whole or in part.
Scales of Measurement
Nominal
Example:
Example:
Students
Students of
of aa university
university are
are classified
classified by
by the
the
school
school in
in which
which they
they are
are enrolled
enrolled using
using aa
nonnumeric
nonnumeric label
label such
such as
as Business,
Business, Humanities,
Humanities,
Education,
Education, and
and soso on.
on.
Alternatively,
Alternatively, aa numeric
numeric code
code could
could be
be used
used for
for
the
the school
school variable
variable (e.g.
(e.g. 11 denotes
denotes Business,
Business,
22 denotes
denotes Humanities,
Humanities, 33 denotes
denotes Education,
Education, and
and
so
so on).
on).
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied
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or duplicated, or posted to a publicly accessible website, in whole or in part.
Scales of Measurement
Ordinal
The
The data
data have
have the
the properties
properties of
of nominal
nominal data
data and
and
the
the order
order or
or rank
rank of
of the
the data
data is
is meaningful
meaningful..
A
A nonnumeric
nonnumeric label
label or
or numeric
numeric code
code may
may be
be used.
used.
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied
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or duplicated, or posted to a publicly accessible website, in whole or in part.
Scales of Measurement
Ordinal
Example:
Example:
Students
Students of
of aa university
university are
are classified
classified by
by their
their
class
class standing
standing using
using aa nonnumeric
nonnumeric label
label such
such asas
Freshman,
Freshman, Sophomore,
Sophomore, Junior,
Junior, or
or Senior.
Senior.
Alternatively,
Alternatively, aa numeric
numeric code
code could
could bebe used
used for
for
the
the class
class standing
standing variable
variable (e.g.
(e.g. 11 denotes
denotes
Freshman,
Freshman, 22 denotes
denotes Sophomore,
Sophomore, and and so
so on).
on).
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied
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or duplicated, or posted to a publicly accessible website, in whole or in part.
Scales of Measurement
Interval
The
The data
data have
have the
the properties
properties of
of ordinal
ordinal data,
data, and
and
the
the interval
interval between
between observations
observations is
is expressed
expressed in
in
terms
terms of
of aa fixed
fixed unit
unit of
of measure.
measure.
Interval
Interval data
data are
are always
always numeric
numeric..
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or duplicated, or posted to a publicly accessible website, in whole or in part.
Scales of Measurement
Interval
Example:
Example:
Melissa
Melissa has
has an
an SAT
SAT score
score of
of 1205,
1205, while
while Kevin
Kevin
has
has an
an SAT
SAT score
score of
of 1090.
1090. Melissa
Melissa scored
scored 115
115
points
points more
more than
than Kevin.
Kevin.
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied
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or duplicated, or posted to a publicly accessible website, in whole or in part.
Scales of Measurement
Ratio
The
The data
data have
have all
all the
the properties
properties of
of interval
interval data
data
and
and the
the ratio
ratio of
of two
two values
values is
is meaningful
meaningful..
Variables
Variables such
such as
as distance,
distance, height,
height, weight,
weight, and
and time
time
use
use the
the ratio
ratio scale.
scale.
This
This scale
scale must
must contain
contain aa zero
zero value
value that
that indicates
indicates
that
that nothing
nothing exists
exists for
for the
the variable
variable at
at the
the zero
zero point.
point.
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied
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or duplicated, or posted to a publicly accessible website, in whole or in part.
Scales of Measurement
Ratio
Example:
Example:
Melissa’s
Melissa’s college
college record
record shows
shows 36
36 credit
credit hours
hours
earned,
earned, while
while Kevin’s
Kevin’s record
record shows
shows 7272 credit
credit
hours
hours earned.
earned. Kevin
Kevin has
has twice
twice as
as many
many credit
credit
hours
hours earned
earned asas Melissa.
Melissa.
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or duplicated, or posted to a publicly accessible website, in whole or in part.
Categorical and Quantitative Data
Data
Data can
can be
be further
further classified
classified as
as being
being categorical
categorical
or
or quantitative.
quantitative.
The
The statistical
statistical analysis
analysis that
that is
is appropriate
appropriate depends
depends
on
on whether
whether the
the data
data for
for the
the variable
variable are
are categorical
categorical
or
or quantitative.
quantitative.
In
In general,
general, there
there are
are more
more alternatives
alternatives for
for statistical
statistical
analysis
analysis when
when the
the data
data are
are quantitative.
quantitative.
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or duplicated, or posted to a publicly accessible website, in whole or in part.
Preview: Tabular and Graphical Methods
Data
Categorical Data Quantitative Data
Labels
Labels or
or names
names used
used to
to identify
identify an
an attribute
attribute of
of
each
each element
element
Often
Often referred
referred to
to as
as qualitative
qualitative data
data
Use
Use either
either the
the nominal
nominal or
or ordinal
ordinal scale
scale of
of
measurement
measurement
Can
Can be
be either
either numeric
numeric or
or nonnumeric
nonnumeric
Appropriate
Appropriate statistical
statistical analyses
analyses are
are rather
rather limited
limited
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Quantitative Data
Quantitative
Quantitative data
data can
can be
be discrete
discrete or
or continuous.
continuous.
Quantitative
Quantitative data
data are
are always
always numeric
numeric..
Ordinary
Ordinary arithmetic
arithmetic operations
operations are
are meaningful
meaningful for
for
quantitative
quantitative data.
data.
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied
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or duplicated, or posted to a publicly accessible website, in whole or in part.
Scales of Measurement
Data
Categorical Quantitative
Nominal
Nominal Ordinal Nominal Ordinal Interval Ratio
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Cross-Sectional Data
Cross-sectional
Cross-sectional data
data are
are collected
collected atat the
the same
same or
or
approximately
approximately the
the same
same point
point in
in time.
time.
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or duplicated, or posted to a publicly accessible website, in whole or in part.
Time Series Data
Time
Time series
series data
data are
are collected
collected over
over several
several time
time
periods.
periods.
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or duplicated, or posted to a publicly accessible website, in whole or in part.
Data Sources
Existing Sources
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Data Sources
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Data Acquisition Considerations
Time Requirement
• Searching for information can be time consuming.
• Information may no longer be useful by the time it
is available.
Cost of Acquisition
• Organizations often charge for information even
when it is not their primary business activity.
Data Errors
• Using any data that happen to be available or were
acquired with little care can lead to misleading
information.
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or duplicated, or posted to a publicly accessible website, in whole or in part.
4. Descriptive Statistics
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or duplicated, or posted to a publicly accessible website, in whole or in part.
Example: Hudson Auto Repair
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or duplicated, or posted to a publicly accessible website, in whole or in part.
Example: Hudson Auto Repair
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or duplicated, or posted to a publicly accessible website, in whole or in part.
Tabular Summary:
Frequency and Percent Frequency
Example: Hudson Auto
Parts Percent
Cost ($) Frequency Frequency
50-59 2 4
60-69 13 26
(2/50)100
70-79 16 32
80-89 7 14
90-99 7 14
100-109 5 10
50 100
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Graphical Summary: Histogram
12
10
8
6
4
2
Parts
5059 6069 7079 8089 9099 100-110 Cost ($)
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Numerical Descriptive Statistics
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5.Statistical Inference
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Process of Statistical Inference
1. Population
consists of all tune- 2. A sample of 50
ups. Average cost of engine tune-ups
parts is unknown.
unknown is examined.
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