Awareness in Statistics promotes

Decision Making

Submitted by:
Sailesh JV (IPMX03007)
Manish Kataria (IPMX03011)
Praveer Chandra (IPMX03021)
Preeti Kalra (IPMX03022)
Sachin C Salian (IPMX03030)
Vandeep S Sahni (IPMX03044)
 Contents
Essence of • Meaning
Statistics
• Impact on Us
• IIML Noida Campus

Awareness • Rendition
• Real Life
Helps
Decision • Simulated
Making
STATISTICS - Definition

Statistics is the science of

collecting, organizing and
interpreting numerical and non
numerical facts, which we call
data
Statistics – Impact on Us
Be able to analyze statistics,
which can be used to
support or undercut almost
any argument.
~ Marilyn vos Savant
Statistics – Rendition

Do not put your faith in

what statistics say until
you have carefully considered
what they do not say. 
~William W. Watt
IPMX Mess Scheduling

•Analysis of Frequency
Distribution

•Allocation of resources
as per Frequency Distribution
Tariff Optimization
•The
The tariff plans are prepared
first love of the
so that the MEAN ± σ of two
telecoms is your resource
plans never overlap
usage pattern and not
•The free usage beyond σ your
money
are never utilized
~•The
George
usageChan
pattern indicates
the future trends
 The Rise of MVAS and 3G Decisions

Source: TRAI quarterly reports

 Clean Yamuna Campaign

Source: “Sewage Canal: How to Clean the Yamuna” by CSE

 Credit Worthiness

Source: U.S. 2006 data

Budget Management
The key economic driver
of today’s world is the
knowledge of the budget
statistics of each and
every home. ~ Thomas
Sowell
 Road to the Car Key

Source: U.S. 2006 data

Global Warming – An Eye Opener
The single most powerful
weapon against Global
Warming is the complete
arsenal of statistics
~ Bjorn Lomborg
Business Decisions

Infosys chief mentor, Narayana Murthy said Bharti

would benefit from Wal-Mart’s expertise and
technology. He added that the company’s “ability to
leverage the power of technology for bringing in
efficiency...bringing in customer comfort in an unheard
Online Advertising
Online advertising:
Current size: Rs 430 crore
Projected size by 2010: Rs 750 crore

Source: http://www.pwc.com/in/en/press-releases/pwc-forecast-indian-entertainment.jhtml
Sports
31-Mar-10
Team Matches Points Rating
India 38 4719 124
South Africa 38 4572 120

Australia 42 4979 119

Sri Lanka 31 3574 115

England 47 5063 108

Pakistan 25 2008 80

New Zealand 32 2541 79

West Indies 29 2224 77

Bangladesh 25 270 11

Source: www.cricinfo.com

Source: http://www.topnews.in/sports/files/cricket-logo_2.jpg
 Using Linear Correlation and
Regression for decision making
Honey Dew Bakery, Delhi
Number of water bottles
Day sold Temperature
May 18, 2010 76 44
May 19, 2010 72 41
May 20, 2010 69 41
May 21, 2010 70 42
May 22, 2010 68 43
May 24, 2010 74 43
May 25, 2010 78 45
May 26, 2010 78 45
May 27, 2010 74 42
May 28, 2010 70 37
May 29, 2010 73 40
May 31, 2010 ?? 41

Variable Y (dependent variable) - number of bottles sold

Variable X (independent variable) - temperature
Linear Correlation
Number of water
  bottles sold Temperature

Number of water bottles sold 1

Temperature 0.639308284 1

The linear correlation coefficient is a quantity

between -1 and +1

This quantity is denoted by R. The closer R to

+1, the stronger positive (direct) correlation
and similarly the closer R to -1 the stronger
negative (inverse) correlation exists between
the two variables.
 Number of water
  bottles sold Temperature

Number of water bottles sold 1

Temperature 0.639308284 1

The correlation between the number of bottles and the

temperature is quite a strong positive correlation

This means as the temperature increases, the demand for bottles

also increases

The linear correlation is +0.639308284, which is closer to +1

Regression

y=mx+b

where,
• m is the slope of the line
• b is the y-intercept
• Variable Y (dependent variable) - number of
bottles
• Variable X (independent variable) - temperature
 Number of water bottles
Day sold Temperature
May 18, 2010 76 44
May 19, 2010 72 41
May 20, 2010 69 41
May 21, 2010 70 42
May 22, 2010 68 43
May 24, 2010 74 43
May 25, 2010 78 45
May 26, 2010 78 45
May 27, 2010 74 42
May 28, 2010 70 37
May 29, 2010 73 40
May 31, 2010 ?? 41

  Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 99.0% Upper 99.0%

Intercept 32.97847682 16.03185479 2.05706 0.0698 -3.2881 69.24505 -19.12241 85.079368

Temperature 0.948675497 0.380350943 2.49421 0.0342 0.088262 1.809089 -0.287403 2.1847535

The relationship between the number of bottles and the
temperature is: Y = 0.948675497*(Temperature) + 32.97847682

Referring to this expression we can approximately predict the

number of bottles needed on May 31.

The weather forecast for May 31 is 41 degrees; therefore the

number of bottles needed is equal to:

The number of bottles =

Y = 0.948675497*41 + 32.97847682 = 71.8

= 72 bottles
Thank You