Professional Documents
Culture Documents
Chapter 01
Chapter 01
Chapter 01
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Chapter 1
1.2 Data
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1.1 Business Statistics and Their Uses
Statistics
the mathematical science that deals with the
collection, analysis, and presentation of data,
which can then be used as a basis for inference
and induction
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Business Statistics and Their Uses
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1.2 Data
Data
values assigned to observations or measurements
Information
data that are transformed into useful facts that
can be used for a specific purpose, such as making
a decision
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Data Sets and Databases
Data set
a collection of data points
Database
a collection of data points that contains
multiple rows (records) and columns
(fields)
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The Sources of Data
Primary data
data that you have collected for your own use
Secondary data
data collected by someone else
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The Sources of Data
Advantages: Advantages:
• collected by the person or • Readily available
organization who uses the • Less expensive to collect
data
Disadvantages: Disadvantages:
• Can be expensive and time- • No control over how the data
consuming to gather was collected
• Less reliable unless collected
and recorded accurately
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Primary Data
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An Example of a Survey
To encourage
respondents to
participate, an
effective survey
will state its
purpose in the
beginning.
Personal
demographic
questions are
often last, when
respondents feel
more comfortable
with the process.
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The Two Main Types of Data
Qualitative Quantitative
Data Data
Classified by descriptive terms
Counted Measured
Examples:
• Marital Status Described by numerical values
• Political Party
Examples: Examples:
• Eye Color
(Defined categories) • Number of • Weight
Children • Voltage
• Defects per hour (Measured
(Counted items) characteristics)
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Classifying Data
by Level of Measurement
Types of Data
Qualitative Quantitative
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Classifying Data
by Level of Measurement
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1.3 Branches of Statistics
Descriptive statistics
• collecting, summarizing, and displaying data
Inferential statistics
• making claims or conclusions about the data
based on a sample
Predictive statistics
• analyzing past data to predict future values and
make decisions
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Population vs. Sample
Population
• represents all possible subjects that are of
interest in a particular study
Sample
• refers to a portion of the
population that is
representative of the
population from which
it was selected
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Parameter vs. Statistic
• Parameter – a described characteristic about a population
• Statistic – a described characteristic about a sample
Population Sample
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Inferential Statistics
• Example:
Observed Estimated population
sample parameter (unknown, but
statistic Inference can be estimated from
(known) sample evidence)
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