Statistics, Problem Solving, and Decision Making (SPSDM)

Dr. Edwin Setiawan Nugraha

Basic Business Statistics, 10e © 2006 Prentice-Hall, Inc. Chap 1-1

 Topics

 Introduction to Statistics
 Basic Probability
 Descriptive Statistics
 Central Tendency
 Inferential Statistics
 Introduction to Decision Theory
 Multiple Linear Regression (Business
Statistics)

Basic Business Statistics, 10e © 2006 Prentice-Hall, Inc.. Chap 1-2

 Grading System
Components
 Assignment : 10%
 Quiz : 10%
 Mid Test : 40%
 Final Test/Project : 40%

Letter Grade
 A>=85
 C+>=64
 A- >=80
 B+>=75
 C>=60
 B>=70  D>=55
 B->=67  E<55

Basic Business Statistics, 10e © 2006 Prentice-Hall, Inc.. Chap 1-3

 Text Books

 Berenson, Mark L., Levine, David M., Krehbiel, Timothy C. (2009). Basic
Business Statistics: Concept and Application. 14th edition. New Jersy: Pearson
Education, Inc (main reference)
 Lind, DA, William GM and Samuel AW. (2017). Statistical Techniques in
Business and Economic. 17th. Mc Graw Hill. Singapore.

Basic Business Statistics, 10e © 2006 Prentice-Hall, Inc.. Chap 1-4

 Note:

 SPSS and Excel

 Use your account gmail from President
University

Basic Business Statistics, 10e © 2006 Prentice-Hall, Inc.. Chap 1-5

 Basic Business Statistics
10th Edition

Chapter 1

Introduction and Data Collection

Basic Business Statistics, 10e © 2006 Prentice-Hall, Inc. Chap 1-6

 Learning Objectives

In this chapter you learn:

 How Statistics is used in business

 The sources of data used in business
 The types of data used in business

Basic Business Statistics, 10e © 2006 Prentice-Hall, Inc.. Chap 1-7

 Basic Concepts of Statistics

Statistics is concerned with:

 Processing and analyzing data

 Collecting, presenting, and transforming
data to assist decision makers

Basic Business Statistics, 10e © 2006 Prentice-Hall, Inc.. Chap 1-8

 Key Definitions
 A population (universe) is the collection of all
members of a group
 A sample is a portion of the population
selected for analysis
 A parameter is a numerical measure that
describes a characteristic of a population
 A statistic is a numerical measure that
describes a characteristic of a sample

Basic Business Statistics, 10e © 2006 Prentice-Hall, Inc.. Chap 1-9

 Population vs. Sample

Population Sample

a b cd b c
ef gh i jk l m n gi n
o p q rs t u v w o r u
x y z y

Measures used to describe a Measures computed from

population are called sample data are called
parameters statistics
Basic Business Statistics, 10e © 2006 Prentice-Hall, Inc.. Chap 1-10
 Two Branches of Statistics

 Descriptive statistics
 Collecting, summarizing, and presenting data
 Inferential statistics
 Drawing conclusions about a population based
only on sample data

Basic Business Statistics, 10e © 2006 Prentice-Hall, Inc.. Chap 1-11

 Descriptive Statistics

 Collect data
 e.g., Survey
 Present data
 e.g., Tables and graphs
 Characterize data
X i
 e.g., Sample mean = n

Basic Business Statistics, 10e © 2006 Prentice-Hall, Inc.. Chap 1-12

 Inferential Statistics
 Estimation
 e.g., Estimate the population
mean weight using the sample
mean weight
 Hypothesis testing
 e.g., Test the claim that the
population mean weight is 120
pounds

Drawing conclusions about a population based on

sample results.

Basic Business Statistics, 10e © 2006 Prentice-Hall, Inc.. Chap 1-13

 Collecting Data
Primary Secondary
Data Collection Data Compilation

Print or Electronic

Observation Survey

Experimentation

Basic Business Statistics, 10e © 2006 Prentice-Hall, Inc.. Chap 1-14

 Types of Data

Data

Categorical Numerical

Examples:
 Marital Status
 Political Party Discrete Continuous
 Eye Color
Examples: Examples:
(Defined categories)
 Number of Children  Weight
 Defects per hour  Voltage
(Counted items) (Measured characteristics)

Basic Business Statistics, 10e © 2006 Prentice-Hall, Inc.. Chap 1-15

 Name Weight Height Gender Education
Budi 65 180 Male S1

Basic Business Statistics, 10e © 2006 Prentice-Hall, Inc.. Chap 1-16

 Levels of Measurement
and Measurement Scales
Differences between Highest Level
measurements, true Ratio Data
zero exists (Strongest forms of
measurement)

Differences between
measurements but no Interval Data
true zero
Higher Levels
Ordered Categories
(rankings, order, or Ordinal Data
scaling)

Categories (no Lowest Level

ordering or direction) Nominal Data (Weakest form of
measurement)
Basic Business Statistics, 10e © 2006 Prentice-Hall, Inc..
 Levels of Measurement
and Measurement Scales
EXAMPLES:
Differences between Height, Age, Weekly
Ratio Data measurements, true
Food Spending
zero exists

Differences between Temperature in

Interval Data measurements but no Fahrenheit, Standardized
true zero exam score

Service quality rating,

Ordered Categories
Ordinal Data (rankings, order, or scaling) Standard & Poor’s bond
rating, Student letter
grades

Categories (no ordering Marital status, Type of car

Nominal Data or direction) owned

Basic Business Statistics, 10e © 2006 Prentice-Hall, Inc..

 Chapter Summary

 Reviewed basic concepts of statistics:

 Population vs. Sample
 Parameter vs. Statistic
 Primary vs. Secondary data sources

 Defined descriptive vs. inferential statistics

 Reviewed types of data and measurement scales
 Categorical vs. Numerical data
 Discrete vs. Continuous data
 Nominal and Ordinal scales
 Interval and Ratio scales

Basic Business Statistics, 10e © 2006 Prentice-Hall, Inc.. Chap 1-19

Install SPSS 25 for Windows
64 bit
https://drive.google.com/drive/
folders/
1TVPQimNshEB_W4G9ZM0vt5
sgltCLilgr?usp=sharing

32 bit

https://www.mediafire.com/
folder/cbftatsribk18/
spss_32_bit_full_version
Install SPSS 25 for Mac

https://drive.google.com/drive/
folders/1TT6YbHfIgvkDQY-IjW-
hH2RjQcSyHF-x