MBA 2020 Basics

Vishal Mishra (IBS, Hyderabad)
BASICS
Analytics, Data Analytics, Business Analytics
According to Merriam-webster dictionary, analytics “is the method of logical

analysis”.
According to Cambridge dictionary analytics “is a process in which

a computer examines information using mathematical methods in order
to find useful patterns”.
According to INFORMS (an international association of operations research and

analytics professionals) analytics is “the scientific process of transforming data into
insights for the purpose of making better decisions”.
BASICS
• Elements, Variables, and Observations
• Scales of Measurement
• Types of Data
- Qualitative and Quantitative Data
- Cross-Sectional and Time Series Data
- Primary and Secondary Data
- Sample and Population Data
BASICS
• Scales of Measurement
Nominal
Ordinal
Interval
Ratio
BASICS
• Statistics: Data Collection, Organization, Analysis, Interpretation and

Presentation
• Descriptive Statistics
• Inferential Statistics
BASICS
Descriptive Statistics
Graphical, Tabular, Numeric representation of Data
- Qualitative
- Quantitative
BASICS
Qualitative Data
Bar Graph, Pie Chart
Frequency Distribution
Relative Frequency Distribution
Cross-tabulation
BASICS
Quantitative Data
Dot Plot, Histogram, Ogive, Scatter Diagram
Frequency Distribution
Relative Frequency Distribution
Cumulative Frequency Distribution
Stem and Leaf Display
Cross-tabulation
Measures of location, Variability

BASICS
Quantitative Data: Numeric Representation
Measures of location: Mean, Median, Mode
Measures of Variability:
Range
Inter-quartile Range
Standard Deviation
Variance
Coefficient of Variation
BASICS S. No. Color S. No. Colour

1 Blue 16 Blue
2 Red 17 Blue
Qualitative Data: Example
3 Blue 18 Green
4 Green 19 Red
5 Red 20 Blue
6 Blue 21 Red
7 Red 22 Red
8 Red 23 Green
9 Red 24 Green
10 Blue 25 Red
11 Red 26 Red
12 Red 27 Blue
13 Green 28 Blue
14 Green 29 Red
15 Blue 30 Red
BASICS
Qualitative Data: Bar Graph
Colour Preference
16
14
12
10
Blue Red Green

BASICS
Qualitative Data: Pie Chart
Colour Preference
BASICS
Qualitative Data: Frequency Distribution
Colour Frequency
Blue 10
Red 14
Green 6
BASICS
Qualitative Data: Relative Frequency Distribution
Relative Frequency: Frequency/Total
Colour Frequency Relative Frequency
Blue 10 0.3333
Red 14 0.4667
Green 6 0.2
Total 30 1
BASICS S. No. JOB TYPE SATISFACTION S. No. JOB TYPE SATISFACTION
Qualitative Data: Example 1 S/W Engineer Y 16 S/W Engineer N

2 Carpenter Y 17 S/W Engineer N
3 S/W Engineer N 18 Bank Cashier N
4 Bank Cashier Y 19 Carpenter N
5 Carpenter Y 20 S/W Engineer Y
6 S/W Engineer N 21 Carpenter N
7 Carpenter Y 22 Carpenter Y
8 Carpenter Y 23 Bank Cashier N
9 Carpenter Y 24 Bank Cashier N
10 S/W Engineer N 25 Carpenter Y
11 Carpenter N 26 Carpenter Y
12 Carpenter N 27 S/W Engineer Y
13 Bank Cashier Y 28 S/W Engineer Y
14 Bank Cashier Y 29 Carpenter Y
15 S/W Engineer N 30 Carpenter Y
BASICS
Qualitative Data: Cross-Tabulation
SATISFACTION
NO YES
S/W Engineer 6 4
JOB Bank Cashier 3 3
Carpenter 4 10
BASICS S. No. Marks S. No. Marks

1 19 16 47
2 33 17 10
Quantitative Data: Example
3 22 18 35
4 32 19 12
5 33 20 15
6 34 21 27
7 38 22 19
8 27 23 45
9 27 24 32
10 26 25 14
11 34 26 40
12 35 27 31
13 25 28 17
14 44 29 20
15 26 30 36
BASICS
Quantitative Data: Frequency Distribution
Number of classes ? Based on judgement, given the number of observations

e.g. for 30 observations we can decide on 5 classes
Class Width = (Max. Value – Min. Value)/(no. of classes)

(47-10)/5 = 7.4 rounded to 8, the larger integer
BASICS
Quantitative Data: Frequency Distribution
Class Intervals Frequency

10 to 18 5
18 to 26 5
26 to 34 10
34 to 42 7
42 to 50 3
BASICS
Quantitative Data: Relative Frequency Distribution
Class Intervals Frequency Relative Frequency Cumulative Relative Frequency
10 to 18 5 0.166666667 (<18): 0.166666667
18 to 26 5 0.166666667 (<26): 0.333333333
26 to 34 10 0.333333333 (<34): 0.666666667
34 to 42 7 0.233333333 (<42): 0.9
42 to 50 3 0.1 (<50): 1
Total = 30 Total = 1
BASICS
Quantitative Data: Histogram
Frequency
12
10
0
Less than 10 10 to 18 18 to 26 26 to 34 34 to 42 42 to 50
BASICS
Quantitative Data: Ogive
Cumulative Frequency
35
30
25
20
15
10
5
0
Less than 10 Less than 18 Less than 26 Less than 34 Less than 42 Less than 50
BASICS
Quantitative Data: Numeric Summary
Measures of location OR central tendency:

Mean, Median, Mode
Measures of Variability:
Range, IQR, Standard Deviation (S.D), Variance, Coefficient of variation
BASICS
Quantitative Data: Measures of Location OR Central Tendency
e.g. Two measures of central tendency for the dataset:

Mean: 28.5 (Symbol for population: µ ; Symbol for sample: x)
Mode: 27
Quartiles/Percentiles:
i = (p/100)*n
If i is an integer, then (in a data arranged in an ascending order) pth

percentile is a value that is mean of the value in the ith and (i+1)th
position. If i is a fraction, then pth percentile is the value in the position
that is obtained by rounding up the value of i to the higher integer.
Median is called as the 50th percentile and represented using Q2

BASICS S. No. Marks S. No. Marks

1 10 16 31
2 12 17 32
Quantitative Data: Ascending Order
3 14 18 32
4 15 19 33
5 17 20 33
6 19 21 34
7 19 22 34
8 20 23 35
9 22 24 35
10 25 25 36
11 26 26 38
12 26 27 40
13 27 28 44
14 27 29 45
15 27 30 47
BASICS
Quantitative Data: Measures of Location OR Central Tendency
For Q2, the 50th percentile or median, i = (50/100)*30 = 15
Now since i is an integer, Q2 is the mean of observations in the ith and (i+1) th
position (when the data is arranged in ascending order).
i.e. Q2 = (27+31)/2
Thus Q2 or Median is 29
BASICS
Quantitative Data: Measures of Variability
Range: Maximum Value – Minimum Value

=?
Inter Quartile Range: IQR = Q3 – Q1
Where, Q1 is the first quartile (or 25th Percentile)

and Q3 is the third quartile (or 75th Percentile)
Here Q1 = ? and Q3 = ?
Thus IQR = ?
BASICS
Range: Maximum Value – Minimum Value

= 47 – 10 = 37
Inter Quartile Range: IQR = Q3 – Q1
Where, Q1 is the first quartile (or 25th Percentile)

and Q3 is the third quartile (or 75th Percentile)
Here Q1 (8th position) = 20 and Q3 (23rd position) = 35

Thus IQR = 35 – 20 = 15
BASICS
Population Variance:  ( x −  ) 2
2 = i
N
=?
Population S.D = σ = ?
2  ( xi − x )
2
Sample Variance: s =
n −1
=?
Sample S.D = s = ?
BASICS S. No. Marks Mean (Marks- Mean)^2

1 10 28.5 342.25
Quantitative Data: Measures of Variability 2 12 28.5 272.25
3 14 28.5 210.25
4 15 28.5 182.25
(Note: data arranged in ascending order)
5 17 28.5 132.25
6 19 28.5 90.25
 ( xi −  ) 2
Population  =
2 7 19 28.5 90.25
N 8 20 28.5 72.25
9 22 28.5 42.25
10 25 28.5 12.25
2  ( xi − x )
2
s = 11 26 28.5 6.25
Sample n −1 12 26 28.5 6.25
… … … …
… … … …
… … … …
BASICS
 ( x −  ) 2
Population Variance: 2 = i
N
= 93.85,
(Numerator, Sum of Squared Difference from Mean: ∑(Xi - µ)2 = 2815.5)
Population S.D, σ = 9.69
2  ( xi − x )
2
Sample Variance: s =
n −1
= 97.09,
Sample S.D, s = 9.85

BASICS
Limitations of Variance, S.D
Two populations: Population 1, Population 2
S.D: 4 kg, 16 kg respectively

BASICS
Concept of Coefficient of variation: Limitations of Variance, S.D
Coefficient of variation, Population = (σ/µ) * 100
Coefficient of variation, Sample = (s/ )x* 100

BASICS
Example: Samples from two populations: Human Beings, Blue Whales

Characteristic: Body Weight
Sample S.D: 4 kg, 16 kg respectively
Sample Mean: 65 kg, 100000 kg respectively
Sample Coefficient of variation: = (s/ )x* 100
Sample 1 C.V: (4/65)*100 = 6.15%

Sample 2 C.V: (16/100000)*100 = 0.016%
BASICS
Relationship Between Variables
Qualitative Data: Cross-tabulation (Tabular)
Quantitative Data:
Scatter Plot (Graphical)
Cross-tabulation (Tabular)
Covariance & Correlation (Numeric)

BASICS S. No. Hours Studied Marks Scored

1 4 4
Relationship Between Variables 2 8 9
3 6 8
Quantitative Data:
4 2 6
Scatter Plot (Graphical) 5 9 10
6 7 6
7 15 20
8 3 5
9 12 18
10 1 3
BASICS
Relationship Between Variables Marks Scored
25
Quantitative Data:
20
Scatter Plot (Graphical)

15
10
0
0 2 4 6 8 10 12 14 16
BASICS S. No.
1
Marks Scored
9
Hours Spend on Social Media
8
2 10 8
3 11 7
4 11 6
5 17 6
Quantitative Data: 6 19 7
7 19 2
8 20 5
Cross-tabulation 9 22 5
10 25 4
11 26 5
12 26 6
13 27 4
14 28 2.5
15 29 4
16 31 2.5
17 32 2.5
18 32 2
19 33 2
20 33 2
BASICS
Quantitative Data:
Hours on Social Media
Cross-tabulation
0 to 3 3 to 6 6 to 9
0 to 12 0 0 4
Marks Scored 12 to 24 1 2 2
24 to 36 6 4 1
BASICS
Quantitative Data:
Covariance : Degree of linear association
 ( xi − x )( yi − y )
Sample: sxy =
n −1
 ( xi −  x )( yi −  y )
Population:
 xy =
N
BASICS
Quantitative Data: Covariance

S.No. Hours Studied (X) Marks Scored (Y) Xi - MeanX Yi - Mean Y (Xi-MeanX) * (Yi-MeanY)
1 4 4 -2.7 -4.9 13.23
2 8 9 1.3 0.1 0.13
3 6 8 -0.7 -0.9 0.63
4 2 6 -4.7 -2.9 13.63
5 9 10 2.3 1.1 2.53
6 7 6 0.3 -2.9 -0.87
7 15 20 8.3 11.1 92.13
8 3 5 -3.7 -3.9 14.43
9 12 18 5.3 9.1 48.23
10 1 3 -5.7 -5.9 33.63
Mean 6.7 8.9

BASICS
Quantitative Data: Covariance
Numerator: Product of differences from mean: 217.7
Sample Covariance: 217.7/9 = 24.19
Population Covariance = 217.7/10 = 21.77

BASICS
Quantitative Data:
Drawback of Covariance
Correlation - Degree of linear association
sxy
Sample: rxy =
sx s y
Population:  xy
 xy =
 x y
BASICS
Quantitative Data:
Correlation - Degree of linear association
Population Variance of X = 18.01; Sample Variance = 20.01
Population Variance of Y = 29.89 ; Sample Variance = 33.21
sxy
rxy =
Sample: sx s y
 xy
Population:  xy =
 x y

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Vishal Mishra (IBS, Hyderabad)

According to Merriam-webster dictionary, analytics “is the method of logical

According to Cambridge dictionary analytics “is a process in which

According to INFORMS (an international association of operations research and

• Elements, Variables, and Observations

• Statistics: Data Collection, Organization, Analysis, Interpretation and

Graphical, Tabular, Numeric representation of Data

Bar Graph, Pie Chart

Dot Plot, Histogram, Ogive, Scatter Diagram

Measures of location, Variability

Measures of location: Mean, Median, Mode

BASICS S. No. Color S. No. Colour

Blue Red Green

Relative Frequency: Frequency/Total

Colour Frequency Relative Frequency

BASICS S. No. JOB TYPE SATISFACTION S. No. JOB TYPE SATISFACTION

Qualitative Data: Example 1 S/W Engineer Y 16 S/W Engineer N

BASICS S. No. Marks S. No. Marks

Quantitative Data: Frequency Distribution

Number of classes ? Based on judgement, given the number of observations

Class Width = (Max. Value – Min. Value)/(no. of classes)

Class Intervals Frequency

Class Intervals Frequency Relative Frequency Cumulative Relative Frequency

10 to 18 5 0.166666667 (<18): 0.166666667

18 to 26 5 0.166666667 (<26): 0.333333333

26 to 34 10 0.333333333 (<34): 0.666666667

34 to 42 7 0.233333333 (<42): 0.9

Measures of location OR central tendency:

e.g. Two measures of central tendency for the dataset:

If i is an integer, then (in a data arranged in an ascending order) pth

Median is called as the 50th percentile and represented using Q2

BASICS S. No. Marks S. No. Marks

For Q2, the 50th percentile or median, i = (50/100)*30 = 15

Range: Maximum Value – Minimum Value

Inter Quartile Range: IQR = Q3 – Q1

Where, Q1 is the first quartile (or 25th Percentile)

Range: Maximum Value – Minimum Value

Inter Quartile Range: IQR = Q3 – Q1

Where, Q1 is the first quartile (or 25th Percentile)

Here Q1 (8th position) = 20 and Q3 (23rd position) = 35

BASICS S. No. Marks Mean (Marks- Mean)^2

Population S.D, σ = 9.69

Sample S.D, s = 9.85

Limitations of Variance, S.D

Two populations: Population 1, Population 2

S.D: 4 kg, 16 kg respectively

Concept of Coefficient of variation: Limitations of Variance, S.D

Coefficient of variation, Population = (σ/µ) * 100

Coefficient of variation, Sample = (s/ )x* 100

Example: Samples from two populations: Human Beings, Blue Whales

Sample S.D: 4 kg, 16 kg respectively

Sample Mean: 65 kg, 100000 kg respectively

Sample Coefficient of variation: = (s/ )x* 100

Sample 1 C.V: (4/65)*100 = 6.15%

Qualitative Data: Cross-tabulation (Tabular)

Scatter Plot (Graphical)

Covariance & Correlation (Numeric)

BASICS S. No. Hours Studied Marks Scored

Scatter Plot (Graphical)

Covariance : Degree of linear association

Quantitative Data: Covariance

Mean 6.7 8.9

Quantitative Data: Covariance