Professional Documents
Culture Documents
1 Introduction (Full Version With Detailed Explanations) - 2
1 Introduction (Full Version With Detailed Explanations) - 2
1 Introduction (Full Version With Detailed Explanations) - 2
Slide
1
Statistics
Slide
2
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
Financial advisors use price-earnings ratios and
dividend yields to guide their investment advice.
Slide
3
Applications in
Business and Economics
Marketing
Electronic point-of-sale scanners at retail checkout
counters are used to collect data for a variety of
marketing research applications.
Production
A variety of statistical quality control charts are used
to monitor the output of a production process.
Slide
4
Data and Data Sets
Slide
5
Elements, Variables, and Observations
Slide
6
Data, Data Sets,
Elements, Variables, and Observations
Observation Variables
Element
Names Stock Annual Earn/
Company Exchange Sales($M) Share($)
Data Set
Slide
7
Scales of Measurement
Slide
8
Scales of Measurement
Nominal
Slide
9
Scales of Measurement
Nominal
Example:
Students of a university are classified by the
school in which they are enrolled using a
nonnumeric label such as Business, Humanities,
Education, and so on.
Alternatively, a numeric code could be used for
the school variable (e.g. 1 denotes Business,
2 denotes Humanities, 3 denotes Education, and
so on).
Slide
10
Scales of Measurement
Ordinal
Slide
11
Scales of Measurement
Ordinal
Example:
Students of a university are classified by their
class standing using a nonnumeric label such as
Freshman, Sophomore, Junior, or Senior.
Alternatively, a numeric code could be used for
the class standing variable (e.g. 1 denotes
Freshman, 2 denotes Sophomore, and so on).
Slide
12
Scales of Measurement
Interval
Slide
13
Scales of Measurement
Interval
Example:
Melissa has an SAT score of 1885, while Kevin
has an SAT score of 1780. Melissa scored 105
points more than Kevin.
Slide
14
Scales of Measurement
Ratio
Slide
15
Scales of Measurement
Ratio
Example:
Melissa’s college record shows 36 credit hours
earned, while Kevin’s record shows 72 credit
hours earned. Kevin has twice as many credit
hours earned as Melissa.
Slide
16
Categorical and Quantitative Data
Slide
17
Categorical Data
Slide
18
Quantitative Data
Slide
19
Scales of Measurement
Data
Categorical Quantitative
Slide
20
Cross-Sectional Data
Slide
21
Time Series Data
Slide
22
Time Series Data
Slide
23
Data Sources
Existing Sources
Slide
24
Data Sources
Slide
25
Data Sources
Slide
26
Data Sources
Slide
27
Data Acquisition Considerations
Time Requirement
• Searching for information can be time consuming.
• Information may no longer be useful by the time it
is available.
Cost of Acquisition
• Organizations often charge for information even
when it is not their primary business activity.
Data Errors
• Using any data that happen to be available or were
acquired with little care can lead to misleading
information.
Slide
28
Descriptive Statistics
Slide
29
Example: William Auto Repair
Slide
30
Example: William Auto Repair
Slide
31
Tabular Summary:
Frequency and Percent Frequency
Example: William Auto Repair
Parts Percent
Cost ($) Frequency Frequency
50-59 2 4
60-69 13 26
(2/50)100
70-79 16 32
80-89 7 14
90-99 7 14
100-109 5 10
50 100
Slide
32
Graphical Summary: Histogram
12
10
8
6
4
2
Parts
50-59 60-69 70-79 80-89 90-99 100-110 Cost ($)
Slide
33
Numerical Descriptive Statistics
Slide
34
Statistical Inference
Slide
35
Process of Statistical Inference
1. Population
consists of all tune- 2. A sample of 50
ups. Average cost of engine tune-ups
parts is unknown. is examined.
Slide
36
Computers and Statistical Analysis
Slide
37
Data Warehousing
Slide
38
Data Mining
Slide
39
Data Mining Applications
Slide
40
Data Mining Requirements
Slide
41
Data Mining Model Reliability
Slide
42
Ethical Guidelines for Statistical Practice
Slide
43
Ethical Guidelines for Statistical Practice
Slide
44