Statistics and Data

By
Junius W. Yu
2013
Statistics
Statistics the art and science of collecting,
analyzing, presenting and interpreting data
Applications in Business
Accounting audit (sampling)
Finance analysis (data gathering)
Marketing compilation (data history)
Production quality control (testing)
Economics forecasting (data indicators)




DATA
Data the facts and figures collected, analyzed and
summarized for presentation and interpretation
Data Set all the data collected in a particular study
Elements the entities on which data are collected
Variable characteristic of interest for the elements
Observation the set of measurements obtained
for a particular element

Table 1 - S&P Companies
Company Exchange Ticker
Symbol
Business
Week
Rank
Share
Price
EPS
Hasbro N HAS 373 21 0.96
eBay NQ EBAY 19 43 0.57
IBM N IBM 216 93 4.94
Bristol
Myers
Squibb
N BMY 346 26 1.21
Element
Variables
Scales of Measurements
Nominal Scale the scale of measurement for a
variable when the data are labels or names used
to identify an attribute of an element. It can be
numeric or non-numeric.
e.g. Exchange (N or NQ) or (1 or 2)
Ordinal Scale The scale of measurement for a
variable if the data exhibit the properties of
nominal data and order or rank of the data is
meaningful.
e.g. Rank (numeric) or (non-numeric) {excellent,
good or poor}
Interval Scale The scale of measurement for a
variable if the data demonstrate the
properties or ordinal and interval between
values expressed in terms of a fixed unit of
measure. Always numeric.
e.g. Grade scores (70, 85, 90)
Ratio Scale The scale of measurement for a
variable if the data demonstrate all the
properties of interval and the ratio of two
values is meaningful. Always numeric.
e.g. Cost, distance, height, weight, time

Categorical and Quantitative
Categorical Data labels or names used to identify
an attribute. Either nominal or ordinal scale of
measurement.
Quantitative Data numeric values that indicate
how much or how many of something. Either
interval or ratio scale of measurement.
Categorical Variable variable with categorical data
Quantitative Variable variable with quantitative
data

Cross Sectional and Time Series
Cross Sectional Data are data collected at the
same (or approximately) point in time.
Time Series Data are data collected over
several time periods.
Graphs of time series are usually found in
business and economic publications. Why?
They help analysts understand what happened
in the past, identify trends and project future
levels.

Branches of Statistics
Descriptive Statistics uses tabular, graphical,
numerical summaries of data
- Stem and Leaf Display
- Cross-tabulations and Scatter Diagrams
Statistical Inference the process of using data
obtained from a sample to make estimates or
test hypotheses about the characteristics of a
population


Population and Sample
Population is the set of all elements of interest
in a particular study
Sample is a subset of the population
Census is a survey conducted on the entire
population to collect data
Sample Survey is a survey conducted from the
sample to collect data

Primary and Secondary Data
Primary Data data collected by the investigator
conducting the research. Original information
for field research.
e.g. your own questionnaire
Secondary Data data collected by another
person or different source for re-use in the
purpose of research.
e.g. books, database, Internet, etc.
Probability Sampling Techniques
1. Simple Random Sampling basic method of
sampling from a population randomly
2. Systematic Random Sampling method in which
we randomly select one of the first k elements
and the select every kth element thereafter.
3. Stratified Sampling method in which the
population is first divided into strata and a
simple random sample is then taken from each
stratum.
4. Cluster Sampling method in which the
population is first divided into clusters and then
a simple random sample of the clusters is taken.
5. Multi Stage Sampling complex form of cluster
sampling

Non-probability Sampling
1. Convenience Sampling (Accidental)
members are chosen based on relative ease
of access. Like friends, classmates, family, etc.
2. Snowball Sampling first respondent refers a
friend then refers another and so on.
3. Judgmental Sampling the researcher
choose the sample appropriate for study.
4. Deviant Case differ from dominant pattern
5. Case Study limited to one group
6. Ad Hoc quotas a quota is established