Robiel H 1

Statistics for management

Population can be:

 Qualitative:- non figurative-categorical

 Quantitative:-figurative: its possible values are numbers that represent
quantities (i.e. “how much” or “how many”. A quantitative variable is
measured on a scale having a fixed unit of measurement between its
possible values.
i. Qualitative data can be classified in to:
A. Nominal (nominative): there is no meaningful ordering, or ranking of the
categories. Example: a person’s gender, the color of a car, and an
employee’s state of residence. It simply assigns values.
B. Ordinal: There is a meaningful ordering, or ranking of the categories. The
measurements may be nonnumeric or numerical. Example: a student may
be asked to rate the teaching effectiveness of a college instructor as
I. Excellent, Very good, Good, Poor, unsatisfactory
II. 1,2,3,4,5
ii. Quantitative data can be classified in to:
A. Interval: the ratios of its values are not meaningful and there is not an
inherently defined zero value. Example: Temperature (on the Fahrenheit
scale) is an interval variable. Zero degrees Fahrenheit does not represent
“no heat at all”. It makes no sense to say that 60 ℃ is twice as 30℃ . In
practice there are very few interval variables other than temperature.
Almost all variables are ratio variables.
B. Ratio (rates):it measures on a scale such that ratios of its values are
meaningful and there is an inherently defined zero value. Example: salary,
weight, height, time, distance
Statistical data collection
1. Census (complete enumeration )
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Statistics for management

All members are collected.

2. Sampling: select some members of the population.
Statistics: are measures obtained from samples.
Sample=X1
Sample variance=S2
Sample standard deviation=S
Parameters:
Parameters: are measures obtained from population.
Example; population mean= μ
Population variance=σ 2
Population standard deviation=σ
1. Discrete data: data obtained by counting and assume a value of whole number or
counting numbers.
E.g. number of students.
2. Continuous data: data obtained by measurement and assumes any decimal value.
E.g. height
3. Variable is a certain characteristic which changes from object to object or from
period to period.
E.g. price of a commodity.
CLASSIFICATION OF STATISTICS
I. Descriptive: it describes the information.
It summarizes and describes data. E.g. mean standard deviation.
II. Inferential statistics: it interprets the result.
Draws conclusion based on the information described.
Steps in data collection
1. Data collection.
2. Data organization.
3. Data analysis.
4. Data interpretation.
Statistics: is a discipline which involves collecting, summarizing, analyzing and
presenting numerical data in a convenient form.
Is a discipline that involves extracting useful information from numerical data.
Is presenting data to useful form from numerical data.

1. Descriptive statistics
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It involves processing (numerical) in convenient form.

Explaining the presented data by using charts, tables, and graphs.
Explaining the reality
E.g. computing the average sum of test

2. Inferential statistics
It involves making judgment, inference, generalizations, estimates etc about a larger
population using the information that is obtained from the sample.
Measurements of population are called parameters.
Studying about the population is called census.
Studying about sample is called sampling.
While descriptive statistics describe the characteristics of the observed data and
helps to reach conclusion about some group only, inferential statistics provides
methods for making generalization about the whole population based on the sample
of observed data.
STATISTICAL INFERENCE
It is the process of making statements, forecasts, prediction, and generalizations
about a population using information obtained from the sample.
Its primary purpose of statistics because
 The population is usually large (infinite).
 Conducting census is too costly or impractical.
USES OF STATISTICS IN MANAGEMENT
Statistics helps mangers in converting raw facts and figures (data) in to useful
information for making decisions. The process of converting data in to information
using statistics is called statistical analysis.