Levine Dkk_statistics for Manager 6ed_01

Statistics for Managers using Microsoft Excel

6th Edition

Chapter 1

Introduction

Copyright ©2011 Pearson Education,

Inc. publishing as Prentice Hall1-1

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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



Copyright ©2011 Pearson Education, Inc. publishing as Prentice Hall 1-2Copyright ©2011 Pearson Education, Inc. publishing as Prentice Hall 1-2

Why Learn Statistics

Make better sense of the world

• Internet articles / reports

• Magazine articles

• Newspaper articles

• Television & radio reports

Make better business decisions

• Business memos

• Business research

• Technical journals

• Technical reports




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




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

Collecting, summarizing, presenting and analyzing data

Inferential Statistics

Using data collected from a small group to draw conclusions about a larger group

These Two Branches Are Used In The Important Activities

• To summarize business data– Descriptive methods used to create charts & tables

• 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– Inferential methods used to develop, quantify, and

improve the accuracy of predictive models

• To improve business processes– Involves managerial approaches like Six Sigma




Descriptive Statistics

• Collect data

– e.g., Survey

• Present data

– e.g., Tables and graphs

• Characterize data

– e.g., The sample mean




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.

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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Inc. publishing as Prentice HallCopyright ©2011 Pearson Education, Inc. publishing as Prentice Hall 1-9Copyright ©2011 Pearson Education, Inc. publishing as Prentice Hall 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


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Population vs. Sample




Population Sample

Measures used to describe the

population are called parameters

Measures used to describe the

sample are called statistics

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)




Chapter Summary

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




In this chapter, we have



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system, or transmitted, in any form or by any means, electronic, mechanical, photocopying,

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Printed in the United States of America.

Levine Dkk_statistics for Manager 6ed_01

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