Department of Business

Administration

ELEMENTARY STATISTICS
Course Code: MA-209
Program: BBA/ BS-COMMERCE
Credit Hours: 03
Week 1 Lecture 2

Instructor: LAL MUHAMMAD

 LECTURE OUTLINE

1. Observation and variables

1. Types of Variables
2. Discrete and continuous Variables
3. Measurement Scales
2. Primary and secondary data and their collection procedures
3. Applications of Statistics in Business

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 LECTURE OBJECTIVES

1. To know about observation and variables

2. To understand the concept of primary and secondary data
and their collection procedures

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 Observation and Variable
• In statistics, an observation often means any sort
of numerically recording of information, whether
it is a physical measurement such that height,
weight.
• Variable is a characteristic that varies with an
individual or an object.

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Qualitative and Quantitative Variable
• The variable which can not be expressed in
numerical terms called qualitative variables like
education, gender, eye-color, quality of product,
intelligence, poverty, satisfaction etc.
• The variable which can be expressed in
numerical terms are called quantitative variables
like age, weight, income, no of children etc.

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Discrete and Continuous Variable
• A quantitative variables are further classified into
discrete or continuous variables.
• A discrete variable is one that take only a finite value
or whole numbers, where values are taken by jumps.
• A continuous variable if it can take one value from
(Fractional or integer) with in a given interval. Like
age of person, weight of a person, height of a plant
etc.

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 Measurement scales
• Nominal
• Ordinal or Ranking Scale
• Interval Scale
• Ratio Scale

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 Measurement scales
• Nominal
The classification or grouping of the observation
into mutually exclusive qualitative categories or
classes.
Examples are
Gender--- 1. male, 2. female
Rainfall--- 1. Heavy, 2. Moderate, 3. light
The nominal scale does not have numerical
significance.

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 Measurement scales
• Ordinal or Rank Scale
It includes the characteristics of a nominal scale and
in addition has the property of ordering or ranking
of measurement.
Examples are
Performance of Student: 1. Excellent, 2. Good, 3.
Fair and 4. Poor.
Satisfaction of a person: 1. Strongly disagree 2.
Disagree, 3. Neutral, 4. Agree and 5. Strongly
Disagre

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 Measurement scales
• Interval Scale
A measurement scale possessing a constant interval
size (distance) but not a true zero is called interval
scale.
Examples are
• Temperature
• IQ Score
• SAT Score
• GPA of Student

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 Measurement scales
• Ratio Scale
It is a special kind of interval scale where the scale
of measurement has a true zero point as origin.
Examples are
• Weight
• Volume
• Length
• distance. etc

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Measurement scales

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 Primary Data
Primary data is data originated for the first time by
the researcher through direct efforts and experience,
specifically for the purpose of addressing his
research problem.

The data can be collected through various methods

like surveys, observations, physical testing, mailed
questionnaires, questionnaire filled and sent by
enumerators, personal interviews, telephonic
interviews, focus groups, and case studies etc.

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 Secondary Data
Secondary data implies second-hand information
which is already collected and recorded by any
person other than the user for a purpose, not relating
to the current research problem.

It is the readily available form of data collected

from various sources like censuses, government
publications, internal records of the organization,
reports, books, journal articles, websites.

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 Use of Statistics in
Business
1. Quality assurance
2. Financial Analysis
3. Production and operations
4. Sales of a store

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 Thanks
End of Lecture # 2

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