BUSINESS STATISTICS

Dr. DANISH JUNAID

Business School
BAHRIA UNIVERSITY, ISLAMABAD
INTRODUCTION
• You may be familiar with statistics in daily routine matters
• 4 out of 7 have secured admission in Bahria university.
• Lets assume thirty minutes of exercise can reduce the weight by 10%
to 15%
• The 99% of CSS candidates were failed in English
INTRODUCTION
• Statistics is the art of collecting, arranging, summarizing and
analyzing as well as drawing results from data

• Statistics is divided into two main areas:

• Descriptive statistics
• Inferential statistics
INTRODUCTION
• Descriptive statistics
In descriptive statistics a statistician tries to describe a situation.
• For example
• If Pakistan’s Bureau of statistics conducts a national census after every 10
years, which provides average age, income and other characteristics of our
population.
• Once data are collected Bureau must organize and summarize them in a
meaningful way.
• Finally, Bureau presents data in the form of graphs, chart and tables.
INTRODUCTION
• Inferential statistics
• Generalize from samples to population
• Perform estimation and hypotheses test
• Determine relationships between variables
• Make predictions
In inferential statistics statistician tries to make conclusion from
samples to population. Inferential statistics uses probability i.e, the
chance of an event occurring .
INTRODUCTION
• Population

It consists of all subjects that are being studied.

• Sample

Group of subjects selected from a population

INTRODUCTION
• Variables and Types of data

• Variable:
• It’s a characteristic or attribute that can assume different values
• Variables can be divided into two further categories

• Qualitative variables
• Quantitative variables
INTRODUCTION
• Qualitative variables

• These variables can be into different categories considering their

characteristics and attributes.

• For example if subjects are classified according to gender (male and female)
then gender is a qualitative variable.
INTRODUCTION
• Quantitative variables
• These variables are numeric in nature and can be ordered or ranked

• For example peoples can be ordered as per their

• Age
• Height
• Weight
• Quantitative variables can further be categorized into two groups
• Discrete
• Continuous
INTRODUCTION
• Discrete variables
• Assumes countable values such as 0, 1, 2, 3
• For example the no. of children in a family, no. of students in a family and
number of calls received by a operator.

• Continuous variable
• It can assume an infinite number of values between any two specific values.
• Temperature is an example of infinite variable as it assumes infinite number of
values between any two given temperature
INTRODUCTION
• Primary Data
• Secondary Data
• Sources of primary data collection
• Telephone surveys
• Mailed questionnaire surveys
• Personal interview surveys
• Sources of secondary data collection
• Global Entrepreneurship Monitor
• World Governance Indicators
INTRODUCTION
• Levels of measurement
• Nominal
• A sample of college instructors classified according to subject taught (e.g.,
English, history, psychology, or mathematics)
• Classifying residents according to zip codes is also an example of the nominal
level of measurement
• political party (PPP, PTI, PML-N, etc.), religion (Christianity, Hinduism,
Islam, etc.), and marital status (single, married, divorced, widowed,
separated).
• No ranking or order can be placed on the data
INTRODUCTION
• Levels of measurement
• Ordinal data
• Data measured at this level can be placed into categories, and these categories
can be ordered, or ranked.
• student evaluations, guest speakers might be ranked as superior, average, or
poor.
• when people are classified according to their build (small, medium, or large), a
large variation exists among the individuals in each class.
INTRODUCTION
• Levels of measurement
• Interval
• It ranks data, and precise differences between units of measure do exist;
however, there is no meaningful zero.
• IQ is an example of such a variable. There is a meaningful difference of 1
point between an IQ of 109 and an IQ of 110
• Temperature is another example of interval measurement, since there is a
meaningful difference of 1F between each unit, such as 72 and 73F.
• IQ tests do not measure people who have no intelligence
• 0F does not mean no heat at all.
INTRODUCTION
• Levels of measurement
• Ratio
• Examples of ratio scales are those used to measure height, weight, area, and
number of phone calls received.
• For example, if one person can lift 200 pounds and another can lift 100
pounds, then the ratio between them is 2 to 1