BUSINESS STATISTICS

(ASSIGNMENT)
SUBMITTED TO. Mrs. NOSHEEN FAROOQ. SUBMITTED BY. MUHAMMAD TAHIR. BBA(Hons)-2008 -12 3rd SEMESTER ROLL NO: 28 SUB DATE. 15-10-2009

UNIVERSITY OF EDUCATIN LOWER MALL CAMPUS LAHORE.

Statistics.
Statistics is a branch of mathematics concerned with collecting and interpreting data. Statistics also provides tools for prediction and forecasting using data and statistical models. Statistics is applicable to a wide variety of academic disciplines, including natural and social sciences, government, and business.

Definition.
it is a mathematical science pertaining to the collection, analysis, interpretation or explanation, and presentation of data. Statisticians improve the quality of data with the design of experiments and survey sampling.

Applications of statistics in business

Statistics are used by all industries and businesses as a standardized unit of measurement for presenting data in a useful and meaningful format. Statistics can be used to measure historical performance and to forecast future targets. For business managers and leaders, statistics provide insight into how business units are performing relative to an organizations goals and objectives. Statistics also forecast future trends and are used in all areas of human thought an endeavor for planning purposes. Since the advent of the internet, statistics have become important for online business operators. Whether it be measuring search engine traffic, assessing product conversion or determining which paid ads are working, statistics provide the necessary data in a meaningful way to support strategic decision making. Without the use of statistics, businesses could not calculate returns on investment and business decision making would become a hit and miss affair. We can also describe the imprtance of statistics in business by these some points. 1. Which group of customers are more valuable (profitable) to the business 2. How vary the business results are from the average 3. Predict the business future using statistics based on the assumptions

Probability.
is a way of expressing knowledge or belief that an event will occur or has occurred. In mathematics the concept has been given an exact meaning in probability theory, that is used extensively in such areas of study as mathematics, statistics, finance, gambling, science, and philosophy to draw conclusions about the likelihood of potential events and the underlying mechanics of complex systems. The probability of an event (see sample space) is a number lying in the interval 0p1, with 0 corresponding to an event that never occurs and 1 to an event that is certain to occur. For an experiment with N equally likely outcomes the probability of an event A is n/N, where n is the number of outcomes in which the event A occurs. For some experiments, such as throwing a drawing pin and seeing whether it lands point up, there is no possible set of equally likely outcomes. In the 'frequentist' view of probability, the probability of getting 'point up' is the limit, in some sense, of the relative frequency as the number of

experiments tends to infinity. In the context of Bayesian inference, each observer has his or her own a priori distribution for the

Definition.
The probability of an event is the ratio of the number of cases favorable to it, to the number of all cases possible when nothing leads us to expect that any one of these cases should occur more than any other, which renders them, for us, equally possible.`

Uses of probability in business.

Probability is used throughout business to evaluate financial and decision-making risks. Every decision made by management carries some chance for failure, so probabiity analysis is conducted formally ("math") and informally (i.e. "I hope"). Math is the preferred method but requires some advanced training, like college courses. For everyone else theres "I hope I guess right" 1.Probability is used in business to evaluate financial and decision making risk. 2.Probability is used to improve business performance.

SPSS.
is a computer program used for statistical analysis. Before 2009 it was called SPSS, but in 2009 it was re-branded as PASW (Predictive Analytics SoftWare) The company announced July 28, 2009 that it was being acquired by IBM for US$1.2 billion. SPSS (originally, Statistical Package for the Social Sciences) was released in its first version in 1968 after being developed by Norman H. Nie and C. Hadlai Hull. SPSS is among the most widely used programs for statistical analysis in social science. It is used by market researchers, health researchers, survey companies, government, education researchers, marketing organizations and others. The original SPSS manual (Nie, Bent & Hull, 1970) has been described as 'Sociology's most influential book'. In addition to statistical analysis, data management (case selection, file reshaping, creating derived data) and data documentation (a metadata dictionary is stored in the datafile) are features of the base software.

Index number
An index number is an economic data figure reflecting price or quantity compared with a standard or base value. The base usually equals 100 and the index number is usually expressed as 100 times the ratio to the base value. For example, if a commodity costs twice as much in 1970 as it did in 1960, its index number would be 200 relative to 1960. Index numbers are used especially to compare business activity, the cost of living, and employment. They enable economists to reduce unwieldy business data into easily understood terms.

Definition.
A number indicating change in magnitude, as of price, wage, employment, or production shifts, relative to the magnitude at a specified point usually taken as 100. (Mathematics & Measurements / Statistics) Statistics a statistic indicating the relative change occurring in each successive period of time in the price, volume, or value of a commodity or in a general economic variable, such as the price level, national income, or gross output, with reference to a previous base period conventionally given the number 100.