#### Transcript Basic Business Statistics, 10/e

```Statistics for Managers using
Microsoft Excel
6th Global Edition
Chapter 1
Introduction
1-1
Learning Objectives
In this chapter you learn:
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
The basic vocabulary of statistics
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How to use Microsoft Excel with this book
1-2
Why Learn Statistics
Make better sense of the world
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Internet articles / reports
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Magazine articles
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Newspaper articles
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Technical journals
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Technical reports
1-3
Many Important Uses
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To draw conclusions from business data
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activities
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1-4
Two Different Branches Of
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
1-5
These Two Branches Are Used
In The Important Activities
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To draw conclusions from business data
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Inferential methods used to reach conclusions about
a large group based on data from a smaller group
activities
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Descriptive methods used to create charts & tables
Inferential methods used to develop, quantify, and
improve the accuracy of predictive models
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Involves managerial approaches like Six Sigma
1-6
Descriptive Statistics
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Collect data
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Present data
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e.g., Survey
e.g., Tables and graphs
Characterize data
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e.g., The sample mean
1-7
Inferential Statistics
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Estimation
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e.g., Estimate the population
mean weight using the sample
mean weight
Hypothesis testing
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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.
1-8
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.
1-9
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.
1-10
Population vs. Sample
Population
Measures used to describe the
population are called parameters
Sample
Measures used to describe the
sample are called statistics
1-11
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)
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activities (Chapters 13 – 16)
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To improve business processes (Chapter 18)
1-12
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