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Statistics For Business and Economics: Anderson Sweeney Williams
Statistics For Business and Economics: Anderson Sweeney Williams
Statistics For Business and Economics: Anderson Sweeney Williams
and Economics
Anderson
Sweeney
Williams
Slides by
John Loucks
St. Edwards University
2011 Cengage Learning. All Rights Reserved. May not be scanned, copied Slide
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or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 1
Data and Statistics
Statistics
Data
Data Sources
Descriptive
Statistics
Statistical
Inference
Computers and Statistical
Analysis
Data Mining
2011 Cengage Learning. All Rights Reserved. May not be scanned, copied Slide
2
or duplicated, or posted to a publicly accessible website, in whole or in part.
Statistics
2011 Cengage Learning. All Rights Reserved. May not be scanned, copied Slide
3
or duplicated, or posted to a publicly accessible website, in whole or in part.
Applications in
Business and Economics
Accounting
Public accounting firms use statistical sampling
procedures when conducting audits for their clients.
Economics
Economists use statistical information in making
forecasts about the future of the economy or some
aspect of it.
Finance
Applications in
Business and Economics
Marketing
2011 Cengage Learning. All Rights Reserved. May not be scanned, copied Slide
5
or duplicated, or posted to a publicly accessible website, in whole or in part.
2011 Cengage Learning. All Rights Reserved. May not be scanned, copied Slide
6
or duplicated, or posted to a publicly accessible website, in whole or in part.
2011 Cengage Learning. All Rights Reserved. May not be scanned, copied Slide
7
or duplicated, or posted to a publicly accessible website, in whole or in part.
Dataram
EnergySouth
Keystone
LandCare
Psychemedics
NQ
N
N
NQ
N
Variables
Annual
Earn/
Sales($M) Share($)
73.10
74.00
365.70
111.40
17.60
0.86
1.67
0.86
0.33
0.13
Data Set
2011 Cengage Learning. All Rights Reserved. May not be scanned, copied Slide
8
or duplicated, or posted to a publicly accessible website, in whole or in part.
Scales of Measurement
Scales
Scales of
of measurement
measurement include:
include:
Nominal
Interval
Ordinal
Ratio
The
The scale
scale determines
determines the
the amount
amount of
of information
information
contained
contained in
in the
the data.
data.
The
The scale
scale indicates
indicates the
the data
data summarization
summarization and
and
statistical
statistical analyses
analyses that
that are
are most
most appropriate.
appropriate.
2011 Cengage Learning. All Rights Reserved. May not be scanned, copied Slide
9
or duplicated, or posted to a publicly accessible website, in whole or in part.
Scales of Measurement
Nominal
Data
Data are
are labels
labels or
or names
names used
used to
to identify
identify an
an
attribute
attribute of
of the
the element.
element.
A
A nonnumeric
nonnumeric label
label or
or numeric
numeric code
code may
may be
be used.
used.
2011 Cengage Learning. All Rights Reserved. May not be scanned, copied Slide
10
or duplicated, or posted to a publicly accessible website, in whole or in part.
Scales of Measurement
Nominal
Example:
Example:
Students
Students of
of aa university
university are
are classified
classified by
by the
the
school
school in
in which
which they
they are
are enrolled
enrolled using
using aa
nonnumeric
nonnumeric label
label such
such as
as Business,
Business, Humanities,
Humanities,
Education,
Education, and
and so
so on.
on.
Alternatively,
Alternatively, aa numeric
numeric code
code could
could be
be used
used for
for
the
the school
school variable
variable (e.g.
(e.g. 1
1 denotes
denotes Business,
Business,
2
2 denotes
denotes Humanities,
Humanities, 3
3 denotes
denotes Education,
Education, and
and
so
so on).
on).
2011 Cengage Learning. All Rights Reserved. May not be scanned, copied Slide
11
or duplicated, or posted to a publicly accessible website, in whole or in part.
Scales of Measurement
Ordinal
The
The data
data have
have the
the properties
properties of
of nominal
nominal data
data and
and
the
the order
order or
or rank
rank of
of the
the data
data is
is meaningful.
meaningful.
A
A nonnumeric
nonnumeric label
label or
or numeric
numeric code
code may
may be
be used.
used.
2011 Cengage Learning. All Rights Reserved. May not be scanned, copied Slide
12
or duplicated, or posted to a publicly accessible website, in whole or in part.
Scales of Measurement
Ordinal
Example:
Example:
Students
Students of
of aa university
university are
are classified
classified by
by their
their
class
class standing
standing using
using aa nonnumeric
nonnumeric label
label such
such as
as
Freshman,
Freshman, Sophomore,
Sophomore, Junior,
Junior, or
or Senior.
Senior.
Alternatively,
Alternatively, aa numeric
numeric code
code could
could be
be used
used for
for
the
the class
class standing
standing variable
variable (e.g.
(e.g. 1
1 denotes
denotes
Freshman,
Freshman, 2
2 denotes
denotes Sophomore,
Sophomore, and
and so
so on).
on).
2011 Cengage Learning. All Rights Reserved. May not be scanned, copied Slide
13
or duplicated, or posted to a publicly accessible website, in whole or in part.
Scales of Measurement
Interval
The
The data
data have
have the
the properties
properties of
of ordinal
ordinal data,
data, and
and
the
the interval
interval between
between observations
observations is
is expressed
expressed in
in
terms
terms of
of aa fixed
fixed unit
unit of
of measure.
measure.
Interval
Interval data
data are
are always
always numeric.
numeric.
2011 Cengage Learning. All Rights Reserved. May not be scanned, copied Slide
14
or duplicated, or posted to a publicly accessible website, in whole or in part.
Scales of Measurement
Interval
Example:
Example:
Melissa
Melissa has
has an
an SAT
SAT score
score of
of 1205,
1205, while
while Kevin
Kevin
has
has an
an SAT
SAT score
score of
of 1090.
1090. Melissa
Melissa scored
scored 115
115
points
points more
more than
than Kevin.
Kevin.
2011 Cengage Learning. All Rights Reserved. May not be scanned, copied Slide
15
or duplicated, or posted to a publicly accessible website, in whole or in part.
Scales of Measurement
Ratio
The
The data
data have
have all
all the
the properties
properties of
of interval
interval data
data
and
and the
the ratio
ratio of
of two
two values
values is
is meaningful.
meaningful.
Variables
Variables such
such as
as distance,
distance, height,
height, weight,
weight, and
and time
time
use
use the
the ratio
ratio scale.
scale.
This
This scale
scale must
must contain
contain aa zero
zero value
value that
that indicates
indicates
that
that nothing
nothing exists
exists for
for the
the variable
variable at
at the
the zero
zero point.
point.
2011 Cengage Learning. All Rights Reserved. May not be scanned, copied Slide
16
or duplicated, or posted to a publicly accessible website, in whole or in part.
Scales of Measurement
Ratio
Example:
Example:
Melissas
Melissas college
college record
record shows
shows 36
36 credit
credit hours
hours
earned,
earned, while
while Kevins
Kevins record
record shows
shows 72
72 credit
credit
hours
hours earned.
earned. Kevin
Kevin has
has twice
twice as
as many
many credit
credit
hours
hours earned
earned as
as Melissa.
Melissa.
2011 Cengage Learning. All Rights Reserved. May not be scanned, copied Slide
17
or duplicated, or posted to a publicly accessible website, in whole or in part.
2011 Cengage Learning. All Rights Reserved. May not be scanned, copied Slide
18
or duplicated, or posted to a publicly accessible website, in whole or in part.
Categorical Data
Labels
Labels or
or names
names used
used to
to identify
identify an
an attribute
attribute of
of
each
each element
element
Often
Often referred
referred to
to as
as qualitative
qualitative data
data
Use
Use either
either the
the nominal
nominal or
or ordinal
ordinal scale
scale of
of
measurement
measurement
Can
Can be
be either
either numeric
numeric or
or nonnumeric
nonnumeric
Appropriate
Appropriate statistical
statistical analyses
analyses are
are rather
rather limited
limited
2011 Cengage Learning. All Rights Reserved. May not be scanned, copied Slide
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or duplicated, or posted to a publicly accessible website, in whole or in part.
Quantitative Data
Quantitative
Quantitative data
data indicate
indicate how
how many
many or
or how
how much:
much:
discrete,
discrete, if
if measuring
measuring how
how many
many
continuous,
continuous, if
if measuring
measuring how
how much
much
Quantitative
Quantitative data
data are
are always
always numeric.
numeric.
Ordinary
Ordinary arithmetic
arithmetic operations
operations are
are meaningful
meaningful for
for
quantitative
quantitative data.
data.
2011 Cengage Learning. All Rights Reserved. May not be scanned, copied Slide
20
or duplicated, or posted to a publicly accessible website, in whole or in part.
Scales of Measurement
Data
Categorical
Numeric
Nomina
Nomina
ll
Ordina
l
Quantitativ
e
Non-numeric
Numeric
Nominal Ordinal
Interval Ratio
2011 Cengage Learning. All Rights Reserved. May not be scanned, copied Slide
21
or duplicated, or posted to a publicly accessible website, in whole or in part.
Cross-Sectional Data
Cross-sectional
Cross-sectional data
data are
are collected
collected at
at the
the same
same or
or
approximately
approximately the
the same
same point
point in
in time.
time.
Example:
Example: data
data detailing
detailing the
the number
number of
of building
building
permits
permits issued
issued in
in February
February 2010
2010 in
in each
each of
of the
the
counties
counties of
of Ohio
Ohio
2011 Cengage Learning. All Rights Reserved. May not be scanned, copied Slide
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or duplicated, or posted to a publicly accessible website, in whole or in part.
2011 Cengage Learning. All Rights Reserved. May not be scanned, copied Slide
23
or duplicated, or posted to a publicly accessible website, in whole or in part.
2011 Cengage Learning. All Rights Reserved. May not be scanned, copied Slide
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or duplicated, or posted to a publicly accessible website, in whole or in part.
Data Sources
Existing Sources
2011 Cengage Learning. All Rights Reserved. May not be scanned, copied Slide
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or duplicated, or posted to a publicly accessible website, in whole or in part.
Data Sources
2011 Cengage Learning. All Rights Reserved. May not be scanned, copied Slide
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or duplicated, or posted to a publicly accessible website, in whole or in part.
Data Sources
Census Bureau
www.census.gov
Data Sources
2011 Cengage Learning. All Rights Reserved. May not be scanned, copied Slide
28
or duplicated, or posted to a publicly accessible website, in whole or in part.
Data Sources
2011 Cengage Learning. All Rights Reserved. May not be scanned, copied Slide
29
or duplicated, or posted to a publicly accessible website, in whole or in part.
2011 Cengage Learning. All Rights Reserved. May not be scanned, copied Slide
30
or duplicated, or posted to a publicly accessible website, in whole or in part.
Descriptive Statistics
Most of the statistical information in
newspapers, magazines, company reports, and
other publications consists of data that are
summarized and presented in a form that is
easy to
understand.
Such
summaries
of data, which may be
tabular, graphical, or numerical, are referred to
as descriptive statistics.
2011 Cengage Learning. All Rights Reserved. May not be scanned, copied Slide
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or duplicated, or posted to a publicly accessible website, in whole or in part.
2011 Cengage Learning. All Rights Reserved. May not be scanned, copied Slide
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or duplicated, or posted to a publicly accessible website, in whole or in part.
78
69
74
97
82
93
72
62
88
98
57
89
68
68
101
75
66
97
83
79
52
75
105
68
105
99
79
77
71
79
80
75
65
69
69
97
72
80
67
62
62
76
109
74
73
2011 Cengage Learning. All Rights Reserved. May not be scanned, copied Slide
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or duplicated, or posted to a publicly accessible website, in whole or in part.
Tabular Summary:
Frequency and Percent Frequency
Percent
Frequency Frequency
4
2
50-59
26 (2/50)100
13
60-69
32
16
70-79
14
7
80-89
14
7
90-99
10
5
100-109
100
50
2011 Cengage Learning. All Rights Reserved. May not be scanned, copied Slide
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or duplicated, or posted to a publicly accessible website, in whole or in part.
Frequency
14
12
10
8
6
4
2
Parts
Cost ($)
5059 6069 7079 8089 9099 100-110
2011 Cengage Learning. All Rights Reserved. May not be scanned, copied Slide
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or duplicated, or posted to a publicly accessible website, in whole or in part.
2011 Cengage Learning. All Rights Reserved. May not be scanned, copied Slide
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or duplicated, or posted to a publicly accessible website, in whole or in part.
Statistical Inference
Population the set of all elements of interest in a
particular study
Sample a subset of the population
the process of using data obtained
Statistical inference
from a sample to make estimates
and test hypotheses about the
characteristics of a population
Census collecting data for the entire population
Sample survey collecting data for a sample
2011 Cengage Learning. All Rights Reserved. May not be scanned, copied Slide
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1. Population
2. A sample of 50
engine tune-ups
is examined.
2011 Cengage Learning. All Rights Reserved. May not be scanned, copied Slide
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or duplicated, or posted to a publicly accessible website, in whole or in part.
Data Warehousing
Organizations obtain large amounts of data on a
daily basis by means of magnetic card readers, bar
code scanners, point of sale terminals, and touch
screen monitors.
Wal-Mart captures data on 20-30 million transactions
per day.
2011 Cengage Learning. All Rights Reserved. May not be scanned, copied Slide
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Data Mining
Analysis of the data in the warehouse might aid in
decisions that will lead to new strategies and higher
profits for the organization.
2011 Cengage Learning. All Rights Reserved. May not be scanned, copied Slide
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or duplicated, or posted to a publicly accessible website, in whole or in part.
2011 Cengage Learning. All Rights Reserved. May not be scanned, copied Slide
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or duplicated, or posted to a publicly accessible website, in whole or in part.
2011 Cengage Learning. All Rights Reserved. May not be scanned, copied Slide
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or duplicated, or posted to a publicly accessible website, in whole or in part.
2011 Cengage Learning. All Rights Reserved. May not be scanned, copied Slide
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or duplicated, or posted to a publicly accessible website, in whole or in part.
End of Chapter 1
2011 Cengage Learning. All Rights Reserved. May not be scanned, copied Slide
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