Business Statistics

MBBA 501
First Semester, 2021-2022
MODULE 1
INTRODUCTION TO THE STATISTICAL CONCEPTS
Module 1:
INTRODUCTION TO THE STATISTICAL CONCEPTS
Outline:
• Definitions and Terminology
• Process of Statistics
• Qualitative and Quantitative Variables
• Discrete and Continuous Variables
• Levels of Measurement
Statistics
Collection Organization Summarization Analysis

Statistics is about providing a measure of confidence in any

conclusions.
 Statistics

enables people to make provides us with tools can provide us information

decisions based on needed to convert massive that we can use to make
empirical evidence data into pertinent sensible decisions
information that can be
used in decision making

The information
referred is data.
Limitations of Statistics
Statistics is not suitable to the study of qualitative
phenomenon.
Statistics does not study individuals.
Statistical laws are not exact.
Statistics table may be misused.
Statistics is only, one of the methods of studying a
problem.
Definitions and Terminologies
• Universe – set of all entities under study
• Population – set of all possible values of the variable
• Individual – person/object that is a member of the population
being studied
Set of
Attributes

Individual

Universe (Population)
Definitions and Terminologies
• Sample – subset of the population
• Parameter – numerical summary of a population
• Statistic – numerical summary of a sample
Population Sample
Parameter Statistic

Summary of Summary of
Information Information
Definitions and Terminologies
• Descriptive Statistics
• Consist of organizing and summarizing data
• Describe data through numerical summaries, tables and
graphs

• Inferential Statistics
• Uses methods that take result from a sample, extend it to
the population, and measure the reliability of the result
Example
You are walking down the street and notice that a person
walking in front of you drops PHP100. Nobody seems to notice
the PHP100 except you. Since you could keep the money
without anyone knowing, would you keep the money or return
it to the owner?
 Example
Suppose you wanted to use this scenario as a gauge Population:
all students at the
of the morality of students at your school by school

determining the percent of students who would Individual:

each student
return the money. How might you do this? You could
Sample:
attempt to present the scenario to every student at 50 students

the school, but this would be difficult or impossible if

the student body is large. A second possibility is to
present the scenario to 50 students and use the
results to make a statement about all the students at
the school.
Example
After asking 50 students:

Suppose 39 of the 50 stated that they would return the money

to the owner. (Descriptive Statistics)

We are 95% confident that between 74% and 82% of all

students would return the money. (Inferential Statistics)
Process of Statistics
1. Identify the research objective.
A researcher must determine the question(s) he or she
wants answered. The question(s) must clearly identify the
population that is to be studied.

2. Collect the information needed to answer the questions.

Gaining access to an entire population is often difficult and
expensive. In conducting research, we typically look at a
subset of the population called a sample.
Process of Statistics
3. Organize and summarize the information.
Descriptive statistics allow the researcher to obtain an
overview of the data and can help determine the type of
statistical methods the researcher should use.

4. Draw conclusion from the information.

In this step the information collected from the sample is
generalized to the population. Inferential statistics uses
methods that takes results obtained from a sample, extends
them to the population, and measures the reliability of the
result.
Process of Statistics
Note:
If the entire population is studied, then inferential statistics
is not necessary, because descriptive statistics will provide
all the information that we need regarding the population.
Qualitative and Quantitative Variables
• Qualitative variable
• Yields categorical responses
• A word or a code that
represents a class or category
Discrete and Continuous Variables
• Discrete Variable
• Quantitative variable that
either a finite number of
possible values or a countable
number of possible values.
• Quantitative variable
• Takes on numerical values
representing an amount or
quantity
• May be further classified either
discrete or continuous
• Continuous Variable
• Quantitative variable that has
an infinite number of possible
values that are not countable
Levels of Measurement
• Qualitative Levels
1. Nominal
2. Ordinal

• Quantitative Levels
3. Interval
4. Ratio
Levels of Measurement

Nominal Level
- Also known as categorical
scales or categorical data
- Data cannot be arranged
in ordering scheme
- They have no numerical
value
Levels of Measurement
Ordinal Level
- Data may be arranged in some
order, but differences between
data values either cannot be
determined or meaningless
- Not only classifies subjects but
also ranks them in terms of the
degree to which they possess a
characteristics of interest
Levels of Measurement
Interval Level
- A measurement level not only
classifies and orders the
measurements, but it also specifies
that the distances between each
interval on the scale are equivalent
along the scale from low interval to
high interval.
- Value of zero does not mean the
absence of the quantity
- Addition and subtraction can be
performed on values of the variable.
Levels of Measurement
Ratio Level
- Has the properties of the interval
level of measurement and the
ratios of the values of the
variable have meaning
- A value of zero means the
absence of the quantity.
- Multiplication and division can
be performed on values of the
variable.
Levels of Measurement
Addition/ Multiplication
Scale Counting Ranking Subtraction /
Division
Nominal 
Ordinal  
Interval   
Ratio    
MODULE 2
DATA COLLECTION AND BASIC CONCEPTS IN SAMPLING
DESIGN
Module 2:
DATA COLLECTION AND BASIC CONCEPTS IN SAMPLING DESIGN
Outline:
• Data Collection
• Sources of Data
• Methods of Collecting Primary and Secondary Data
• Sample Size Determination
• Basic Sampling Design
• Sources of Error in Sampling
Data Collection
• Data Collection is the process of gathering and measuring
information on variables of interest, in an established
systematic fashion that enables one to answer stated
research questions, test hypotheses, and evaluate outcomes.
• Proper planning for data collection must be done to avoid
problems which may affect the data set collected to serve its
intended purpose.
Data Collection
Consequences from improperly collected data includes:
Inability to answer research questions accurately.
Inability to repeat and validate the study.
Distorted findings resulting in wasted resources.
Misleading other researchers to pursue fruitless avenues of
investigation.
Compromising decisions for public policy.
Causing harm to human participants and animal subjects
Steps in Data Gathering
1. Set the objectives for collecting data.
2. Determine the data needed based on the set objectives.
3. Determine the method to be used in data gathering and
define the comprehensive data points.
4. Design data gathering forms to be used.
5. Collect data.
Sources of Data
Primary Sources
• Provide a first-hand account of an event or time period and
are considered to be authoritative.
• Primary data - are data documented by the primary source.
The data collectors documented the data themselves.
Sources of Data
Primary Sources
• Can be collected by the following five methods:
1. Direct personal interviews
• The researcher has direct contact with the interviewee
• The researcher gathers information by asking questions to the
interviewee.
Sources of Data
Primary Sources
• Can be collected by the following five methods:
2. Indirect/Questionnaire Method
• Involves sourcing and accessing existing data that were
originally collected for the purpose of the study
• Designing good “questioning tools” considers what do we want
to know, what techniques to be used, who are the intended
audience, and how large the sample to be interviewed, to
name a few.
Sources of Data
Primary Sources
• Can be collected by the following five methods:
2. Indirect/Questionnaire Method
Key Design Principles of a Good Questionnaire
1. Keep the questionnaire as short as possible.
2. Decide on the type of questionnaire (open-ended or close-ended).
3. Write the questions properly.
4. Order the questions appropriately.
5. Avoid questions that prompt or motivate the respondent to say
what you would want to hear.
Sources of Data
Primary Sources
• Can be collected by the following five methods:
2. Indirect/Questionnaire Method
Key Design Principles of a Good Questionnaire
6. Write an introductory letter or an introduction.
7. Write special instructions for interviewers or respondents.
8. Translate the questions if necessary.
9. Always test your questions before taking the survey (Pre-test).
Sources of Data
Primary Sources
• Can be collected by the following five methods:
2. Indirect/Questionnaire Method
Open-ended question
- a type of question that does not include response categories.
- It permit free responses that should be recorded in the respondent’s own
words.
Close-ended question
- a type of question that includes a list of response categories from which
the respondent will select his answer
- This type of question is usually appropriate for collecting objective data.
Sources of Data
Primary Sources
• Can be collected by the following five methods:
3. Focus Group
• group interview of approximately six to twelve people who
share similar characteristics or common interests
4. Experiment
• method of collecting data where there is direct human
intervention on the conditions that may affect the values of the
variable of interest.
Sources of Data
Primary Sources
• Can be collected by the following five methods:
5. Observation
• a technique that involves systematically selecting, watching and
recording behaviors of people or other phenomena and aspects
of the setting in which they occur, for the purpose of getting
(gaining) specified information.
• includes all methods from simple visual observations to the use
of high-level machines and measurements, sophisticated
equipment or facilities
Source of Data
Secondary Sources
• Offer an analysis, interpretation or a restatement of primary
sources and are considered to be persuasive.
• Secondary data - data documented by a secondary source.
The data collectors had the data documented by other
sources.
• In secondary data, data are primary data for the agency that
collected them and become secondary for someone else
who uses these data for his own purposes.
Source of Data
Secondary Sources
• Can be collected by the following five methods:
1. Published report on newspaper and periodicals.
2. Financial Data reported in annual reports.
3. Records maintained by the institution.
4. Internal reports of the government departments.
5. Information from official publications.
Source of Data
Note:
• Always investigate the validity and reliability of the data by
examining the collection method employed by your source.
• Do not use inappropriate data for your research.
• The choice of methods of data collection is largely based on
the accuracy of the information they yield.
Thank you.