Introduction to Business Statistics

(Chapter 1)

Kyung Sam Park

Professor of LSOM (Logistics, Service & Operations Management)
Korea University Business School
sampark@korea.ac.kr
Contents

 Descriptive Statistics (기술통계) – Chapters 2, 3, 4

 Graphs and summary statistics

 Probability Distributions (확률분포) – Chapters 6, 7, 8

 Examples and theory

 Confidence Interval (신뢰구간) – Chapter 9

 Hypothesis Tests (가설검정) – Chapters 10, 11
 Analysis of Variance: ANOVA (분산분석) – Chapter 12
 Correlation Analysis (상관분석) – Chapter 13
 Regression Analysis (회귀분석) – Chapters 13, 14

2
Variable (변수)

 Decision variable (의사결정변수)

 Usually used in Mathematics, like x and y:
4x + y = 6 x2 – 2x + 1 = 0
3x + y = 4

 Random variable (확률변수)

 Usually used in Statistics, like X and Y, each of which is dataset:
 X = height Y = test score

170 92
165 85
181 50
. .
. .
. .

E(X) Mean?
V(X) Variance?
p(X) Shape (or graph)? 3
Data: Examples

 Numeric data or Survey (opinion) data available

Gender Numeric data – test scores

Female 68, 72, 91, 47, 52, 75, 63, 55, 65, 35
Male 84, 45, 58, 61, 69, 22, 46, 55, 66, 71

Restaurant factor evaluation:

Not important Very important

Q1. Service seed: (1) (2) (3) (4) (5)
Q2. Taste: (1) (2) (3) (4) (5)
Q3. Cost: (1) (2) (3) (4) (5)
Q4. Kindness: (1) (2) (3) (4) (5)

Q5. Gender? (1) Man (2) Woman

Q6. Marriage status? (1) Married (2) Not married
Q7. Age? (1) 20’s >= (2) 30’s (3) 40’s (4) 50’s (5) 60’s <=

4
Types of variables 1

 Quantitative data
 Discrete data (이산자료) – Countable ones: Number of people, airplanes, etc.

 Continuous data (연속자료) – Height, Weight, Money, etc.

 Qualitative data
 Classifications – Gender

 Ranks – University students

5
Types of variables 2

Qualitative data Quantitative data

Nominal Ordinal Interval Ratio

(명목) (순위) (등간) (비율)

Classes Ranks Zero = just a point Zero = nothing

Ratio: No Ratio: Yes

Addresses, Ranks Temperature Money,

Color, Height,
Gender Weight

 What about “Test scores”?

 What about “Survey data” or “Opinion data”?

 The key to the data classifications: Well-defined & reserved?