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Introduction
MBA 200AR
Introduction to Business Statistics
First Trimester 2007-2008

RENE N. ARGENAL, MS


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Instructor
RENE N. ARGENAL
Office: Math & CS Department
Phone: 3443801 local 321/329
Email: ren_argenal@yahoo.com
Office hours: MWF 12:30- 3:00 pm.
(Other times by appointment)

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Introduction
What we learn in this course:
Obtaining, presenting, and organizing statistical
data
measures of location, dispersion, & skewness
the Normal distribution
sampling and sampling distributions
estimation and confidence intervals
hypothesis testing
interference for simple linear regression analysis
use of computers to visualize and analyze data.

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Introduction
Statistics is the science of data. It is concerned
with the scientific method for collecting,
organizing, summarizing, presenting, & analyzing
data as well as drawing valid conclusions and
making reasonable decisions on the basis of such
analysis.

Why need statistics?
- Many jobs in industry, government, medicine,
and other fields require you to make data-driven
decisions, so understanding these methods offers
you important practical benefits.
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Introduction
Who Uses Statistics?
Statistical techniques are used extensively by
marketing, accounting, quality control,
consumers, professional sports people,
hospital administrators, educators, politicians,
physicians, etc...

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Introduction
The collection and study of data are important
in the work of many professions, so that
training in the science of statistics is valuable
preparation for variety of careers. , for example
economists and financial advisors,
businessmen, engineers, farmers

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Statistics means numerical descriptions to
most people.
Examples:
-Proportion of male students in this classroom
-monthly unemployment figures.
-the failure rate of a business.
-the proportion of female executives.
-the number of van sales.
-monthly orange juice prices.
Introduction
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Introduction
An example:
- I want to produce pens to sell.
- How much should I produce?
* If too much, I can not sell all.
* If too little, I can not earn profit.
- Try different quantities at each week.
- After one month, compare profits.

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Introduction
Week Quantity Gain Cost Profit
1 12 $36 -$26 $10
2 14 $44 -$28 $16
3 24 $48 -$36 $12
4 36 $52 -$44 $8
.
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Introduction
Two Branches of Statistics


DESCRIPTIVE INFERENTIAL
STATISTICS
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Introduction
DESCRIPTIVE - DEFINITION
Methods of organizing, summarizing, and
presenting data in an informative way.

EXAMPLE: According to Consumer Reports, Whirlpool
washing machine owners reported 9 problems per
100 machines during 1999. The statistic 9 describes
the number of problems out of every 100 machines.

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Introduction
Inferential Statistics
- A decision, estimate, prediction, or generalization about a
population, based on a sample.
A population
A collection of possible individuals, objects, or
measurements of interest.
A sample
A portion, or part, of the population of interest.

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Introduction
Inferential Statistics
EXAMPLE :
The accounting department of a large firm
will select a sample of the invoices to check
for accuracy for all the invoices of the
company.

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Introduction
- Common Terms:

* Data are numbers or measurement collected as a result of observations.
~ e.g. age, weight, income, gender, grade, race, degree

* Population

* Sample

* Parameter any characteristic of a population which is measurable

* Statistics any characteristics of a sample which is measurable


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Introduction
Variable any phenomenon which may
take on different values.
* Categorical variable-- put an individual into
one of several groups or categories
~ e.g. gender, grade, race, degree
* Quantitative variable use numerical values
for each variable values such that addition
and averaging make sense
~ e.g. salary, height, weight, age, price.
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An Example

Example: Information about employees of CyberStat
Corporation. Each row of data is called a case.
(Similar to Page 5 in the text)





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Example cont.
- What are the
Individuals?
- How many variables?

- Which variable is
categorical variable?

A: Mike, Maggie, Lily,
Jason.
A: 6: age, gender,
race, .
A: Gender, race, Job
type, and degree.

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Example Contd
- Which variable is
quantitative?









A: Age, salary