11 Slide Slide 2005 Thomson/South 2005 Thomson/South- -Western Western
Chapter 1 Chapter 1 Data and Statistics Data and Statistics I need I need help! help! Applications in usiness and !conomics Applications in usiness and !conomics Data Data Data Sources Data Sources Descripti"e Statistics Descripti"e Statistics Statistical In#erence Statistical In#erence Computers and Computers and Statistical Anal$sis Statistical Anal$sis 22 Slide Slide 2005 Thomson/South 2005 Thomson/South- -Western Western Applications in Applications in usiness and !conomics usiness and !conomics Accountin% Accountin% !conomics !conomics &u'lic accountin% #irms use statistical &u'lic accountin% #irms use statistical samplin% procedures (hen conductin% samplin% procedures (hen conductin% audits #or their clients) audits #or their clients) !conomists use statistical in#ormation !conomists use statistical in#ormation in ma*in% #orecasts a'out the #uture o# in ma*in% #orecasts a'out the #uture o# the econom$ or some aspect o# it) the econom$ or some aspect o# it) 2 ++ Slide Slide 2005 Thomson/South 2005 Thomson/South- -Western Western Applications in Applications in usiness and !conomics usiness and !conomics A "ariet$ o# statistical ,ualit$ A "ariet$ o# statistical ,ualit$ control charts are used to monitor control charts are used to monitor the output o# a production process) the output o# a production process) &roduction &roduction !lectronic point !lectronic point- -o# o#- -sale scanners at sale scanners at retail chec*out counters are used to retail chec*out counters are used to collect data #or a "ariet$ o# mar*etin% collect data #or a "ariet$ o# mar*etin% research applications) research applications) -ar*etin% -ar*etin% .. Slide Slide 2005 Thomson/South 2005 Thomson/South- -Western Western Applications in Applications in usiness and !conomics usiness and !conomics /inancial ad"isors use price /inancial ad"isors use price- -earnin%s ratios and earnin%s ratios and di"idend $ields to %uide their in"estment di"idend $ields to %uide their in"estment recommendations) recommendations) /inance /inance + 55 Slide Slide 2005 Thomson/South 2005 Thomson/South- -Western Western Data and Data Sets Data and Data Sets Data Data are the #acts and #i%ures collected0 summari1ed0 are the #acts and #i%ures collected0 summari1ed0 anal$1ed0 and interpreted) anal$1ed0 and interpreted) The data collected in a particular stud$ are re#erred The data collected in a particular stud$ are re#erred to as the to as the data set data set)) 22 Slide Slide 2005 Thomson/South 2005 Thomson/South- -Western Western The The elements elements are the entities on (hich data are are the entities on (hich data are collected) collected) A A "aria'le "aria'le is a characteristic o# interest #or the elements) is a characteristic o# interest #or the elements) The set o# measurements collected #or a particular The set o# measurements collected #or a particular element is called an element is called an o'ser"ation o'ser"ation)) The total num'er o# data "alues in a data set is the The total num'er o# data "alues in a data set is the num'er o# elements multiplied '$ the num'er o# num'er o# elements multiplied '$ the num'er o# "aria'les) "aria'les) !lements0 3aria'les0 and 4'ser"ations !lements0 3aria'les0 and 4'ser"ations . 55 Slide Slide 2005 Thomson/South 2005 Thomson/South- -Western Western Stoc* Annual !arn/ Stoc* Annual !arn/ !6chan%e Sales78-9 Share789 !6chan%e Sales78-9 Share789 Data0 Data Sets0 Data0 Data Sets0 !lements0 3aria'les0 and 4'ser"ations !lements0 3aria'les0 and 4'ser"ations Compan$ Compan$ Dataram Dataram !ner%$South !ner%$South :e$stone :e$stone ;andCare ;andCare &s$chemedics &s$chemedics A-!< A-!< 5+)10 5+)10 0)=2 0)=2 4TC 4TC 5.)00 5.)00 1)25 1)25 >?S! >?S! +25)50 +25)50 0)=2 0)=2 >?S! >?S! 111).0 111).0 0)++ 0)++ A-!< A-!< 15)20 15)20 0)1+ 0)1+ 3aria'les 3aria'les !lement !lement >ames >ames Data Set Data Set == Slide Slide 2005 Thomson/South 2005 Thomson/South- -Western Western Scales o# -easurement Scales o# -easurement The scale indicates the data summari1ation and The scale indicates the data summari1ation and statistical anal$ses that are most appropriate) statistical anal$ses that are most appropriate) The scale determines the amount o# in#ormation The scale determines the amount o# in#ormation contained in the data) contained in the data) Scales o# measurement include@ Scales o# measurement include@ >ominal >ominal 4rdinal 4rdinal Inter"al Inter"al Aatio Aatio 5 BB Slide Slide 2005 Thomson/South 2005 Thomson/South- -Western Western Scales o# -easurement Scales o# -easurement >ominal >ominal A A nonnumeric la'el nonnumeric la'el or or numeric code numeric code ma$ 'e used) ma$ 'e used) Data are Data are la'els or names la'els or names used to identi#$ an used to identi#$ an attri'ute o# the element) attri'ute o# the element) 10 10 Slide Slide 2005 Thomson/South 2005 Thomson/South- -Western Western !6ample@ !6ample@ Students o# a uni"ersit$ are classi#ied '$ the Students o# a uni"ersit$ are classi#ied '$ the school in (hich the$ are enrolled usin% a school in (hich the$ are enrolled usin% a nonnumeric la'el such as usiness0 Cumanities0 nonnumeric la'el such as usiness0 Cumanities0 !ducation0 and so on) !ducation0 and so on) Alternati"el$0 a numeric code could 'e used #or Alternati"el$0 a numeric code could 'e used #or the school "aria'le 7e)%) 1 denotes usiness0 the school "aria'le 7e)%) 1 denotes usiness0 2 denotes Cumanities0 + denotes !ducation0 and 2 denotes Cumanities0 + denotes !ducation0 and so on9) so on9) Scales o# -easurement Scales o# -easurement >ominal >ominal 2 11 11 Slide Slide 2005 Thomson/South 2005 Thomson/South- -Western Western Scales o# -easurement Scales o# -easurement 4rdinal 4rdinal A A nonnumeric la'el nonnumeric la'el or or numeric code numeric code ma$ 'e used) ma$ 'e used) The data ha"e the properties o# nominal data and The data ha"e the properties o# nominal data and the the order or ran* o# the data is meanin%#ul order or ran* o# the data is meanin%#ul)) 12 12 Slide Slide 2005 Thomson/South 2005 Thomson/South- -Western Western Scales o# -easurement Scales o# -easurement 4rdinal 4rdinal !6ample@ !6ample@ Students o# a uni"ersit$ are classi#ied '$ their Students o# a uni"ersit$ are classi#ied '$ their class standin% usin% a nonnumeric la'el such as class standin% usin% a nonnumeric la'el such as /reshman0 Sophomore0 Dunior0 or Senior) /reshman0 Sophomore0 Dunior0 or Senior) Alternati"el$0 a numeric code could 'e used #or Alternati"el$0 a numeric code could 'e used #or the class standin% "aria'le 7e)%) 1 denotes the class standin% "aria'le 7e)%) 1 denotes /reshman0 2 denotes Sophomore0 and so on9) /reshman0 2 denotes Sophomore0 and so on9) 5 1+ 1+ Slide Slide 2005 Thomson/South 2005 Thomson/South- -Western Western Scales o# -easurement Scales o# -easurement Inter"al Inter"al Inter"al data are Inter"al data are al(a$s numeric al(a$s numeric)) The data ha"e the properties o# ordinal data0 and The data ha"e the properties o# ordinal data0 and the inter"al 'et(een o'ser"ations is e6pressed in the inter"al 'et(een o'ser"ations is e6pressed in terms o# a #i6ed unit o# measure) terms o# a #i6ed unit o# measure) 1. 1. Slide Slide 2005 Thomson/South 2005 Thomson/South- -Western Western Scales o# -easurement Scales o# -easurement Inter"al Inter"al !6ample@ !6ample@ -elissa has an SAT score o# 12050 (hile :e"in -elissa has an SAT score o# 12050 (hile :e"in has an SAT score o# 10B0) -elissa scored 115 has an SAT score o# 10B0) -elissa scored 115 points more than :e"in) points more than :e"in) = 15 15 Slide Slide 2005 Thomson/South 2005 Thomson/South- -Western Western Scales o# -easurement Scales o# -easurement Aatio Aatio The data ha"e all the properties o# inter"al data The data ha"e all the properties o# inter"al data and the and the ratio o# t(o "alues is meanin%#ul ratio o# t(o "alues is meanin%#ul)) 3aria'les such as distance0 hei%ht0 (ei%ht0 and time 3aria'les such as distance0 hei%ht0 (ei%ht0 and time use the ratio scale) use the ratio scale) This This scale must contain a 1ero "alue scale must contain a 1ero "alue that indicates that indicates that nothin% e6ists #or the "aria'le at the 1ero point) that nothin% e6ists #or the "aria'le at the 1ero point) 12 12 Slide Slide 2005 Thomson/South 2005 Thomson/South- -Western Western Scales o# -easurement Scales o# -easurement Aatio Aatio !6ample@ !6ample@ -elissaEs colle%e record sho(s +2 credit hours -elissaEs colle%e record sho(s +2 credit hours earned0 (hile :e"inEs record sho(s 52 credit earned0 (hile :e"inEs record sho(s 52 credit hours earned) :e"in has t(ice as man$ credit hours earned) :e"in has t(ice as man$ credit hours earned as -elissa) hours earned as -elissa) B 15 15 Slide Slide 2005 Thomson/South 2005 Thomson/South- -Western Western Data can 'e #urther classi#ied as 'ein% ,ualitati"e Data can 'e #urther classi#ied as 'ein% ,ualitati"e or ,uantitati"e) or ,uantitati"e) The statistical anal$sis that is appropriate depends The statistical anal$sis that is appropriate depends on (hether the data #or the "aria'le are ,ualitati"e on (hether the data #or the "aria'le are ,ualitati"e or ,uantitati"e) or ,uantitati"e) In %eneral0 there are more alternati"es #or statistical In %eneral0 there are more alternati"es #or statistical anal$sis (hen the data are ,uantitati"e) anal$sis (hen the data are ,uantitati"e) Fualitati"e and Fuantitati"e Data Fualitati"e and Fuantitati"e Data 1= 1= Slide Slide 2005 Thomson/South 2005 Thomson/South- -Western Western Fualitati"e Data Fualitati"e Data ;a'els or names ;a'els or names used to identi#$ an attri'ute o# each used to identi#$ an attri'ute o# each element element 4#ten re#erred to as 4#ten re#erred to as cate%orical data cate%orical data Gse either the nominal or ordinal scale o# Gse either the nominal or ordinal scale o# measurement measurement Can 'e either numeric or nonnumeric Can 'e either numeric or nonnumeric Appropriate statistical anal$ses are rather limited Appropriate statistical anal$ses are rather limited 10 1B 1B Slide Slide 2005 Thomson/South 2005 Thomson/South- -Western Western Fuantitati"e Data Fuantitati"e Data Fuantitati"e data indicate Fuantitati"e data indicate ho( man$ or ho( much@ ho( man$ or ho( much@ discrete discrete0 i# measurin% ho( man$ 0 i# measurin% ho( man$ continuous continuous0 i# measurin% ho( much 0 i# measurin% ho( much Fuantitati"e data are Fuantitati"e data are al(a$s numeric al(a$s numeric)) 4rdinar$ arithmetic operations are meanin%#ul #or 4rdinar$ arithmetic operations are meanin%#ul #or ,uantitati"e data) ,uantitati"e data) 20 20 Slide Slide 2005 Thomson/South 2005 Thomson/South- -Western Western Scales o# -easurement Scales o# -easurement Fualitati"e Fualitati"e Fuantitati"e Fuantitati"e >umerical >umerical >umerical >umerical >onnumerical >onnumerical Data Data >ominal >ominal 4rdinal 4rdinal >ominal >ominal 4rdinal 4rdinal Inter"al Inter"al Aatio Aatio 11 21 21 Slide Slide 2005 Thomson/South 2005 Thomson/South- -Western Western Cross Cross- -Sectional Data Sectional Data Cross Cross- -sectional data sectional data are collected at the same or are collected at the same or appro6imatel$ the same point in time) appro6imatel$ the same point in time) !6ample !6ample@ data detailin% the num'er o# 'uildin% @ data detailin% the num'er o# 'uildin% permits issued in Dune 200+ in each o# the counties permits issued in Dune 200+ in each o# the counties o# 4hio o# 4hio 22 22 Slide Slide 2005 Thomson/South 2005 Thomson/South- -Western Western Time Series Data Time Series Data Time series data Time series data are collected o"er se"eral time are collected o"er se"eral time periods) periods) !6ample !6ample@ data detailin% the num'er o# 'uildin% @ data detailin% the num'er o# 'uildin% permits issued in ;ucas Count$0 4hio in each o# permits issued in ;ucas Count$0 4hio in each o# the last +2 months the last +2 months 12 2+ 2+ Slide Slide 2005 Thomson/South 2005 Thomson/South- -Western Western Data Sources Data Sources !6istin% Sources !6istin% Sources Within a #irm Within a #irmHH almost an$ department almost an$ department usiness data'ase ser"ices usiness data'ase ser"ices HH Do( Dones I Co) Do( Dones I Co) Jo"ernment a%encies Jo"ernment a%encies - - G)S) Department o# ;a'or G)S) Department o# ;a'or Industr$ associations Industr$ associations HH Tra"el Industr$ Association Tra"el Industr$ Association o# America o# America Special Special- -interest or%ani1ations interest or%ani1ations HH Jraduate -ana%ement Jraduate -ana%ement Admission Council Admission Council Internet Internet HH more and more #irms more and more #irms 2. 2. Slide Slide 2005 Thomson/South 2005 Thomson/South- -Western Western Statistical Studies Statistical Studies Data Sources Data Sources In In e6perimental studies e6perimental studies the "aria'les o# interest the "aria'les o# interest are #irst identi#ied) Then one or more #actors are are #irst identi#ied) Then one or more #actors are controlled so that data can 'e o'tained a'out ho( controlled so that data can 'e o'tained a'out ho( the #actors in#luence the "aria'les) the #actors in#luence the "aria'les) In In o'ser"ational o'ser"ational 7none6perimental9 7none6perimental9 studies studies no no attempt is made to control or in#luence the attempt is made to control or in#luence the "aria'les o# interest) "aria'les o# interest) a sur"e$ is a a sur"e$ is a %ood e6ample %ood e6ample 1+ 25 25 Slide Slide 2005 Thomson/South 2005 Thomson/South- -Western Western Data Ac,uisition Considerations Data Ac,uisition Considerations Time Ae,uirement Time Ae,uirement Cost o# Ac,uisition Cost o# Ac,uisition Data !rrors Data !rrors KK Searchin% #or in#ormation can 'e time consumin%) Searchin% #or in#ormation can 'e time consumin%) KK In#ormation ma$ no lon%er 'e use#ul '$ the time it In#ormation ma$ no lon%er 'e use#ul '$ the time it is a"aila'le) is a"aila'le) KK 4r%ani1ations o#ten char%e #or in#ormation e"en 4r%ani1ations o#ten char%e #or in#ormation e"en (hen it is not their primar$ 'usiness acti"it$) (hen it is not their primar$ 'usiness acti"it$) KK Gsin% an$ data that happens to 'e a"aila'le or Gsin% an$ data that happens to 'e a"aila'le or that (ere ac,uired (ith little care can lead to poor that (ere ac,uired (ith little care can lead to poor and misleadin% in#ormation) and misleadin% in#ormation) 22 22 Slide Slide 2005 Thomson/South 2005 Thomson/South- -Western Western Descripti"e Statistics Descripti"e Statistics Descripti"e statistics Descripti"e statistics are the ta'ular0 %raphical0 and are the ta'ular0 %raphical0 and numerical methods used to numerical methods used to summari1e summari1e data) data) 1. 25 25 Slide Slide 2005 Thomson/South 2005 Thomson/South- -Western Western !6ample@ Cudson Auto Aepair !6ample@ Cudson Auto Aepair The mana%er o# Cudson Auto The mana%er o# Cudson Auto (ould li*e to ha"e a 'etter (ould li*e to ha"e a 'etter understandin% o# the cost understandin% o# the cost o# parts used in the en%ine o# parts used in the en%ine tune tune- -ups per#ormed in the ups per#ormed in the shop) She e6amines 50 shop) She e6amines 50 customer in"oices #or tune customer in"oices #or tune- -ups) The costs o# parts0 ups) The costs o# parts0 rounded to the nearest dollar0 are listed on the ne6t rounded to the nearest dollar0 are listed on the ne6t slide) slide) 2= 2= Slide Slide 2005 Thomson/South 2005 Thomson/South- -Western Western B1 5= B+ 55 55 52 BB =0 B5 22 51 2B 52 =B 22 55 5B 55 52 52 10. 5. 22 2= B5 105 55 25 =0 10B =5 B5 == 2= =+ 2= 51 2B 25 5. 22 =2 B= 101 5B 105 5B 2B 22 5+ !6ample@ Cudson Auto Aepair !6ample@ Cudson Auto Aepair Sample o# &arts Cost #or 50 Tune Sample o# &arts Cost #or 50 Tune- -ups ups 15 2B 2B Slide Slide 2005 Thomson/South 2005 Thomson/South- -Western Western Ta'ular Summar$@ Ta'ular Summar$@ /re,uenc$ and &ercent /re,uenc$ /re,uenc$ and &ercent /re,uenc$ 50 50- -5B 5B 20 20- -2B 2B 50 50- -5B 5B =0 =0- -=B =B B0 B0- -BB BB 100 100- -10B 10B 22 1+ 1+ 12 12 55 55 55 50 50 .. 22 22 +2 +2 1. 1. 1. 1. 10 10 100 100 72/509100 72/509100 &arts &arts Cost 789 Cost 789 &arts &arts /re,uenc$ /re,uenc$ &ercent &ercent /re,uenc$ /re,uenc$ +0 +0 Slide Slide 2005 Thomson/South 2005 Thomson/South- -Western Western Jraphical Summar$@ Cisto%ram Jraphical Summar$@ Cisto%ram 22 .. 22 == 10 10 12 12 1. 1. 12 12 1= 1= Parts Cost ($) Parts Cost ($) F r e q u e n c y F r e q u e n c y 505B 202B 505B =0=B B0BB 100-110 505B 202B 505B =0=B B0BB 100-110 Tune Tune- -up &arts Cost up &arts Cost 12 +1 +1 Slide Slide 2005 Thomson/South 2005 Thomson/South- -Western Western >umerical Descripti"e Statistics >umerical Descripti"e Statistics CudsonEs a"era%e cost o# parts0 'ased on the 50 CudsonEs a"era%e cost o# parts0 'ased on the 50 tune tune- -ups studied0 is 85B 7#ound '$ summin% the ups studied0 is 85B 7#ound '$ summin% the 50 cost "alues and then di"idin% '$ 509) 50 cost "alues and then di"idin% '$ 509) The most common numerical descripti"e statistic The most common numerical descripti"e statistic is the is the a"era%e a"era%e 7or 7or mean mean9) 9) +2 +2 Slide Slide 2005 Thomson/South 2005 Thomson/South- -Western Western Statistical In#erence Statistical In#erence &opulation &opulation Sample Sample Statistical in#erence Statistical in#erence Census Census Sample sur"e$ Sample sur"e$ the set o# all elements o# interest in a the set o# all elements o# interest in a particular stud$ particular stud$ a su'set o# the population a su'set o# the population the process o# usin% data o'tained the process o# usin% data o'tained #rom a sample to ma*e estimates #rom a sample to ma*e estimates and test h$potheses a'out the and test h$potheses a'out the characteristics o# a population characteristics o# a population collectin% data #or a population collectin% data #or a population collectin% data #or a sample collectin% data #or a sample 15 ++ ++ Slide Slide 2005 Thomson/South 2005 Thomson/South- -Western Western &rocess o# Statistical In#erence &rocess o# Statistical In#erence 11) &opulation ) &opulation consists o# all consists o# all tune tune- -ups) A"era%e ups) A"era%e cost o# parts is cost o# parts is un*no(n un*no(n) 22) A sample o# 50 ) A sample o# 50 en%ine tune en%ine tune- -ups ups is e6amined) is e6amined) ++) The sample data ) The sample data pro"ide a sample pro"ide a sample a"era%e parts cost a"era%e parts cost o# 85B per tune o# 85B per tune- -up) up) ..) The sample a"era%e ) The sample a"era%e is used to estimate the is used to estimate the population a"era%e) population a"era%e) +. +. Slide Slide 2005 Thomson/South 2005 Thomson/South- -Western Western Computers and Statistical Anal$sis Computers and Statistical Anal$sis Statistical anal$sis o#ten in"ol"es (or*in% (ith Statistical anal$sis o#ten in"ol"es (or*in% (ith lar%e amounts o# data lar%e amounts o# data)) Computer so#t(are Computer so#t(are is t$picall$ used to conduct the is t$picall$ used to conduct the anal$sis) anal$sis) Statistical so#t(are pac*a%es such as Statistical so#t(are pac*a%es such as -icroso#t !6cel -icroso#t !6cel and and -inita' -inita' are capa'le o# data mana%ement0 anal$sis0 are capa'le o# data mana%ement0 anal$sis0 and presentation) and presentation) Instructions #or usin% !6cel and -inita' are pro"ided Instructions #or usin% !6cel and -inita' are pro"ided in chapter appendices) in chapter appendices) 1= +5 +5 Slide Slide 2005 Thomson/South 2005 Thomson/South- -Western Western !nd o# Chapter 1 !nd o# Chapter 1