P1C201U1L2

MBA 201-18

Business Analytics for Decision Making

UNIT 1 LESSON 2
Introduction to Statistics?
Vivek Sharma

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P1C201U1L2
Introduction to Statistics Learning Objectives

UNIT 1
1. Meaning
L1:Inferential Statistics
2. Types of Inferential Statistics
L2:Primary and Secondary Data

L3:Classifications. 3. Descriptive Vs. Inferential

L4: Frequency Distributions 4. Importance of Inferential

Statistics
L5: Tabulation

L6: Census and Sampling

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UNIT 1

Meaning of Inferential Statistics

A field of statistics that uses analytical tools for

drawing conclusions about a population by
examining random samples.

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UNIT 1

Types of Inferential Statistics

  1. Hypothesis Testing
2. Regression Analysis

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Descriptive vs. Inferential

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Applications in Finance
• To estimate financial forecasts
• For break-even analysis
• For investment decisions under certainty.

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Applications in Auditing and Accounting

 • For evaluation of the assets of the business
concerns.
• Statistical data on some macro variables like
income, expenditure, investment, profits,
production, savings, etc.,
• Revaluating the accounting records based on
historical costs of assets after adjusting for the
changes in the purchasing power of money.
• Used in forecasting profits, determination of
trends, computation of financial ratios.

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UNIT 1

Applications in Auditing and Accounting

  ••The standard industrial classification of statistics
Fixed assets acquired in ownership including
financial lease and investments through
operational lease or hire
• Type of asset.
• New or used asset.
• The value of sold assets is also considered.

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UNIT 1

Applications in Purchase
 • To obtain rates of currency conversion that
eliminates the differences in price levels
between countries and so permit volume
comparisons.
• It shows the ratio of the prices in national
currencies of the same good or service in
different countries.

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Applications in Human Resources

  •• In Recruiting and training of staff.
To identify areas of weakness where improvement
is needed.
• To identify compensation programs such as
pension schemes.
• To identify areas where investment is needed.
• It may even help a potential problem from
growing out of control.

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P1C201U1L2S9
UNIT 1

Applications in Auditing and Accounting

  ••The standard industrial classification of statistics
Fixed assets acquired in ownership including
financial lease and investments through
operational lease or hire
• Type of asset.
• New or used asset.
• The value of sold assets is also considered.

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UNIT 1

Applications in Human Resources

 • Total revenue, capital transfers (paid) by

functions in particular periods
• Total expenditure in details by functions and
by economic type
• Financial assets and liabilities
• Social security funds receipts, outlays and
financial accounts
• Social security funds operations
• Detailed classification of social benefits

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UNIT 1
Summary
Introduction to Statistics 1. Applications in Marketing

?
2. Applications in Production

End of unit 1 Lesson 2 3. Application in Finance

4. Application in Auditing and Accounting
5. Application in Human Resources

Estimation , Accuracy
Small Quiz?
Systematic
Quantitative, Qualitative

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UNIT 1
Further Readings
1. https://www.cuemath.com/data/inferential-statistics/
2. https://www.wallstreetmojo.com/inferential-statistics/

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