Transcript Basic Business Statistics, 10/e

Statistics for Managers using
Microsoft Excel
6th Global Edition
Chapter 1
Introduction
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Learning Objectives
In this chapter you learn:

How business uses statistics

The basic vocabulary of statistics

How to use Microsoft Excel with this book
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Why Learn Statistics
Make better sense of the world
Make better business decisions

Internet articles / reports

Business memos

Magazine articles

Business research

Newspaper articles

Technical journals

Television & radio reports

Technical reports
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In Business, Statistics Has
Many Important Uses

To summarize business data

To draw conclusions from business data

To make reliable forecasts about business
activities

To improve business processes
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Two Different Branches Of
Statistics Are Used In Business
Statistics
The branch of mathematics that transforms data into
useful information for decision makers.
Descriptive Statistics
Inferential Statistics
Collecting, summarizing,
presenting and analyzing data
Using data collected from a
small group to draw conclusions
about a larger group
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These Two Branches Are Used
In The Important Activities

To summarize business data


To draw conclusions from business data


Inferential methods used to reach conclusions about
a large group based on data from a smaller group
To make reliable forecasts about business
activities


Descriptive methods used to create charts & tables
Inferential methods used to develop, quantify, and
improve the accuracy of predictive models
To improve business processes

Involves managerial approaches like Six Sigma
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Descriptive Statistics

Collect data


Present data


e.g., Survey
e.g., Tables and graphs
Characterize data

e.g., The sample mean
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Inferential Statistics

Estimation


e.g., Estimate the population
mean weight using the sample
mean weight
Hypothesis testing

e.g., Test the claim that the
population mean weight is 120
pounds
Drawing conclusions about a large group of
individuals based on a smaller group.
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Basic Vocabulary of Statistics
VARIABLES
Variables are a characteristics of an item or individual and are what you
analyze when you use a statistical method.
DATA
Data are the different values associated with a variable.
OPERATIONAL DEFINITIONS
Data values are meaningless unless their variables have operational
definitions, universally accepted meanings that are clear to all associated
with an analysis.
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Basic Vocabulary of Statistics
POPULATION
A population consists of all the items or individuals about which
you want to draw a conclusion. The population is the “large
group”
SAMPLE
A sample is the portion of a population selected for analysis. The
sample is the “small group”
PARAMETER
A parameter is a numerical measure that describes a characteristic
of a population.
STATISTIC
A statistic is a numerical measure that describes a characteristic of
a sample.
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Population vs. Sample
Population
Measures used to describe the
population are called parameters
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Sample
Measures used to describe the
sample are called statistics
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This Book Is Organized To Show
The Four Uses Of Statistics

To summarize business data (Chapters 2 & 3)

To draw conclusions from business data
(Chapters 4 – 12)

To make reliable forecasts about business
activities (Chapters 13 – 16)

To improve business processes (Chapter 18)
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Chapter Summary
In this chapter, we have
 Introduced the basic vocabulary of statistics and the
role of statistics in turning data into information to
facilitate decision making
 Examined the use of statistics to:
 Summarize data
 Draw conclusions from data
 Make reliable forecasts
 Improve business processes
 Examined descriptive vs. inferential statistics
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recording, or otherwise, without the prior written permission of the publisher.
Printed in the United States of America.
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