Introduction to

Business Statistics

Dr. Wilson Cordova, LPT

 STATISTIC
Sdeals with the
A science that
collection, organization,
presentation, analysis and
interpretation of data
 Purpose of Statistics
O To provide information
O To provide comparisons
O To help discern relationships
O To aid in decision making
O To estimate unknown quantities
O To justify claims or assertions
O To predict future outcomes
 Branches of Statistics

DESCRIPTIVE STATISTICS
Consists of methods concerned with
collection, organization, summarization
and presentation of a set of data
 Branches of Statistics

INFERENTIAL STATISTICS
Comprised of those methods concerned
with making predictions or inferences
about an entire population based on
information provided by the sample
 Population and sample

Population
Consists of the totality of all the
elements or entities from which you
want to obtain an information
Sample
A subset of the population
 A Car Company wants to know the top 3 features of cars that
are most important to licensed drivers in the Philippines. The
Company telephones 100 Alabang residents and asks a series of
questions

1] Which of these is the population in this survey? Justify

your answer.
A] all licensed drivers in Alabang
B] all residents in Alabang
C] all licensed drivers in the Philippines
D] all residents of the Philippines

2] Which of these is the sample in this survey? Justify your

answer.
A] 100 licensed drivers in Alabang
B] all licensed drivers in Alabang
C] 100 licensed drivers in the Philippines
D] all licensed drivers in the Philippines
 Census and survey

Census
the process of collecting information
from the population
Survey
the process of collecting information
from the sample
 Parameter and statistic

Paramater
a summary or numerical measure used
to describe a population
Statistic
a summary or numerical measure used
to describe a sample
 Constant

a characteristic or property of a
population or sample which makes the
members similar to each other.
 variables

any characteristic or information

measurable or observable on every
element of the population or sample
 Qualitative (Categorical) Variables
variables that indicate what kind of a
given characteristic an individual,
object, or event possesses.
Quantitative (Numerical) Variables
variables that indicate how much a
given characteristic an individual,
object, or event possesses
Identify whether the given belongs to Quantitative or Qualitative
type of variables.
DATA QN / QL
Weekly allowance QN

Income of parents QN

Gender QL

Civil status QL

Religion QL

Age QN

Address QL

Educational attainment of parents QL

Jobs/ occupation of parents QL

School previously attended QL

Types of quantitative variables

Discrete Variables
variables whose values are obtained
through the process of counting
Continuous Variables
variables whose values are obtained
through the process of measuring
Dependent
a variable which is affected by another
variable
Ex. “test scores” is dependent on number of
hours spent in studying, IQ, attitude towards
studying, etc…
Independent
a variable which affects the dependent variable
Ex. “number of hours spent in studying”
affects test scores
Scales of measurement of variables

Nominal
OVariables whose values are simply
labels or names or categories
without any explicit or implicit
ordering of the labels;
OLowest level of measurement known
as categorical scale.
Scales of measurement of variables

Ordinal
O Variables whose values are simply
labels or names or categories with an
implied ordering in these labels;
O Ranking can be done on the data
O Distance between two labels can not be
determined.
Scales of measurement of variables

Interval
OVariables whose values can be
ordered and distance between any
two labels are of known size;
OAlways numeric and have no true
zero point.
Scales of measurement of variables

Ratio
OVariables whose values have all the
properties of the interval scale and
the ratio of two values is meaningful
OHas a true zero point;
OHighest level of measurement