ENTREPRENUER/

E.STATISTICS
INTRODUCTION

 What is Statistics?
o Mathematical science including methods of collecting,
organizing and analyzing data in such a way that
meaningful conclusions can be drawn from them.
o Falls into two broad categories called descriptive and
inferential statistics.
 Descriptive statistics
 The data are presented in the form of tables and graphs. The
characteristics of the data are described in simple terms.

 Inferential statisctics
 a scientific discipline that uses mathematical tools to
make forecasts and projections by analyzing the given
data.
 Who Uses Statistics?
 are used widely across an array of applications and
professions. Any time data are collected and analyzed,
statistics are being done. This can range from government
agencies to academic research to analyzing investments.
Importance of Statistics
• an essential tool in education, government, business,
economics, medicine, psychology, sociology, sports, and
others
• gathered for the purpose of providing government
heads with date necessary to guide them in policy
making, effective administration and in managing the
affairs of the state
Importance of Statistics
• gathered for the purpose of providing government heads with date
necessary to guide them in policy making, effective administration and
in managing the affairs of the state
• in education, statistical tools are used to get information on
enrolment, finance, physical facilities and so on for intelligent
administration and management
• In business and economics, statistics play an important role in the
exploration of new markets for a product, forecasting of business
trends, control on the quality of goods, produced and improvement of
personnel relations.
Basic Terms and Statistical Concepts
 Data and Data Set
• Data are the raw materials of statistics. Data analysis cannot
proceed until the data of interest in an investigation are
organized in a useful manner.
• Data are observations made on a particular variable of the
individuals or entities under investigation
• Data set represents the set of observations made on the different
variables of the individuals or entities under investigation
 Variable and Constant
• Variable is a quantity that can assume any of the range or
prescribed set of values. It is a characteristic that
manifests differences in magnitudes
• A constant is a quantity that takes a single fixed value
 Variable/Data Type
• Qualitative variable, one that cannot be ordered in some
dimensions and classifications are merely labels
• Quantitative variable, a variable that assumes values
which are either discrete or continuous
 Means, Medians, and Modes
o Mean
The mean is the sum of all the values in a set, divided by
the number of values. The mean of a whole population is
usually denoted by µ, while the mean of a sample is
usually denoted by x.
o Median
the middle number of a set of numbers arranged in
numerical order. If the number of values in a set is even,
then the median is the sum of the two middle values,
divided by 2
not affected by the magnitude of the extreme (smallest
or largest) values. Thus, it is useful because it is not
affected by one or two abnormally small or large values,
and because it is very simple to calculate.
o Mode
the most frequent value in a set. A set can have more
than one mode; if it has two, it is said to be bimodal.
Example 1: The mode of {1, 1, 2, 3, 5, 8} is 1. The modes
of {1, 3, 5, 7, 9, 9, 21, 25, 25, 31} are 9 and 25. Thus,
the set is bimodal.
 The mode is useful when the members of a set are very
different - take, for example, the statement “there were more
Ds on that test than any other letter grade” (that is, in the set
{A, B, C, D, E}, D is the mode).
On the other hand, the fact that the mode is absolute (for
example, 2.9999 and 3 are considered just as different as 3 and
100 are) can make the mode a poor choice for determing a
“center”. For example, the mode of the set {1, 2.3, 2.3, 5.14,
5.15, 5.16, 5.17, 5.18, 10.2} Is 2.3, even though there are
many values that are close to, but not exactly equal to, 5.16