De La Salle University College of Business Financial Management Department

FINSTAT Data and Statistics Descriptive Statistics: Tabular and Graphical Methods

ELEMENTS, VARIABLES, and OBSERVATIONS

Consider the following statements In the year 2000, 40% of stock mutual funds actually had positive returns. But net inflows to stock funds have increased by $2 billion. In Hong Kong, Disney had paid only $310 million for a 43% stake in a venture that is valued at $4 billion

ELEMENTS, VARIABLES, and OBSERVATIONS

The numerical facts in the preceding slide are called statistics In everyday usage, statistics refer to numerical facts In a much broader and academic sense, statistics is the art and science of collecting, analyzing, presenting, and interpreting data

ELEMENTS, VARIABLES, and OBSERVATIONS

Data are the facts and figures that are collected, analyzed, and summarized for presentation and interpretation Put all together, they are referred to as a data set for the study Elements are the entities on which data are collected A variable is a characteristic of interest for the elements

ELEMENTS, VARIABLES, and OBSERVATIONS

Data are obtained by collecting measurements on each variable for each element in a study. The set of measurements obtained for a particular element is called an observation.

ELEMENTS, VARIABLES, and OBSERVATIONS

BRAND 1Q 10 Rev (in $m) 2Q 10 Rev (in $m) 3Q 10 Rev (in $m) 4Q 10 Rev (in $m)

A
B C

$11.4
$3.4 $2.3

$15.2
$5.3 $1.0

$7.7
$4.1 $0.9

$15.0
$7.7 $0.8

D
E F

$8.4
$0.4 $0.3

$8.4
$0.3 $0.7

$9.5
$0.3 $0.6

$9.3
$0.4 $0.6

SCALES and MEASUREMENTS

The scale of measurement determines the amount of information contained in the data. It also indicates the data summarization and statistical analyses that are most appropriate. Data are obtained using one of the following scales of measurement: nominal, ordinal, interval, and ratio.

SCALES and MEASUREMENTS

SCALE NOMINAL ORDINAL INTERVAL RATIO TYPE of DATA
Labels or names used to identify an attribute of the element; can use numeric or non-numeric codes Have the properties of nominal data and the order or rank of the data is meaningful Have the properties of ordinal data and the interval between observations is expressed in terms of a fixed unit of measure Have all the properties of interval data and the ratio of two values is meaningful; includes a zero value which indicates that nothing exists for the variable at that point

QUALITATIVE and QUANTITATIVE DATA

Qualitative data are labels or names used to identify an attribute of each element Uses either the nominal or ordinal scale of measurement Can be numeric or non-numeric Quantitative data are numeric values that indicate how much or how many Uses either the interval or ratio scale of measurement

CROSS-SECTIONAL and TIME SERIES DATA

Cross-sectional data are data collected at the same or approximately the same point in time Time-series data are data collected over several time periods

DATA SOURCES
Data can be collected from existing sources or from surveys and experimental studies designed to obtain new data Sometimes, data needed already exist within a firm or organization and can be readily obtained via the internet, industry and special interest organizations, and organizations and that specialize in collecting and maintaining data

DATA SOURCES
In the event that data are not available through existing sources, such needed data can be obtained through statistical studies Statistical studies can be classified as either experimental or observational In experimental studies, a variable of interest is first identified, after which one or more other variables are identified and controlled to determine how they influence the variable of interest

DATA SOURCES
In observational studies, unlike experimental studies, no attempt is made to control the variables of interest Survey is one of the most common types of observational study

DESCRIPTIVE STATISTICS
Data summarized into tabular, graphical, or numerical ways are referred to as descriptive statistics

INFERENTIAL STATISTICS
Sometimes, data are sought for a large group of elements. Due to time, cost, and other constraints, data are collected from only a small portion of the group, which is said to be a representative of the whole group. A population is the set of all elements of interest in a particular study A sample is a subset of the population Data from a sample can be used to make estimates and test hypotheses about the characteristics of a population The process is known as statistical inference

SUMMARIZING QUALITATIVE DATA

Frequency Distribution a tabular summary of data showing the number (frequency) of items in each of several nonoverlapping classes
DATA SET Coke Classic Pepsi Coke Classic Diet Coke Coke Classic Diet Coke Pepsi Mug Coke Classic Diet Coke Sprite Diet Coke Coke Classic Coke Classic Coke Classic Coke Classic Diet Coke Sprite Mug Coke Classic Pepsi Diet Coke Coke Classic Coke Classic Pepsi Sprite Coke Classic Softdrink Frequency Coke Classic 12 Diet Coke 6 Pepsi 4 Sprite 3 Mug 2

SUMMARIZING QUALITATIVE DATA

Relative frequency of a class is the fraction or proportion of items belonging to a class

Frequency Relative Frequency n

A relative frequency distribution is a tabular summary of data showing the relative distribution for each class
Softdrink Frequency Relative Frequency Coke Classic 12 44% Diet Coke 6 22% Pepsi 4 15% Sprite 3 11% Mug 2 7%

SUMMARIZING QUALITATIVE DATA

Bar Graphs a graphical device for depicting qualitative data that have been summarized in a frequency, relative frequency, or percent frequency distribution
14 12 10

Frequency

8 Frequency 6 4 2 0 Coke Classic Diet Coke Pepsi Softdrink Sprite Mug

SUMMARIZING QUALITATIVE DATA

Pie Chart a graphical device used for presenting relative frequency and percent frequency distributions for qualitative data
Sprite 11% Mug 7%

Pepsi 15%

Coke Classic 45%

Diet Coke 22%