Chapter One: An Introduction to Business Statistics. Statistics Applications in Business and Economics Basic Vocabulary Terms Populations and Samples. Applications in Business and Economics. Accounting - PowerPoint PPT Presentation
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Dr. Constance Lightner- Fayetteville State University
Public accounting firms use statistical sampling procedures when conducting audits for their clients.
Financial analysts use a variety of statistical information, including price-earnings ratios and dividend yields, to guide their investment recommendations.
Electronic point-of-sale scanners at retail checkout counters are being used to collect data for a variety of marketing research applications.
From Anderson, Sweeney and Williams
Dr. Constance Lightner- Fayetteville State University
A variety of statistical quality control charts are used to monitor the output of a production process.
Economists use statistical information in making forecasts about the future of the economy or some aspect of it.
From Anderson, Sweeney and Williams
Dr. Constance Lightner- Fayetteville State University
Dr. Constance Lightner- Fayetteville State University
Dr. Constance Lightner- Fayetteville State University
Dr. Constance Lightner- Fayetteville State University
A qualitative variable is a variable with qualitative data
A quantitative variable is a variable with quantitative data.
Dr. Constance Lightner- Fayetteville State University
Stock Annual Earn/
Company Exchange Sales($M) Sh.($)
DataramAMEX73.10 0.86
EnergySouth OTC74.00 1.67
Keystone NYSE 365.70 0.86
LandCare NYSE 111.40 0.33
PsychemedicsAMEX17.60 0.13
Observation
Variables
From Anderson, Sweeney and Williams
Elements
Data Set
Datum
Dr. Constance Lightner- Fayetteville State University
Short Exercise
In the previous example, determine which variables are qualitative and which are quantitative.
Ans: Stock exchange is qualitative. Annual Sales and Earn/Shares is quantitative.
Dr. Constance Lightner- Fayetteville State University
Dr. Constance Lightner- Fayetteville State University
Population
Sample
From Anderson, Sweeney and Williams
Dr. Constance Lightner- Fayetteville State University
Descriptive Statistics is tabular, graphical, and numerical methods used to summarize data.
Dr. Constance Lightner- Fayetteville State University
Example: Hudson Auto Repair
Descriptive Statistics
Graphical Summary (Histogram)
18
16
14
12
Frequency
10
8
From Anderson, Sweeney and Williams
6
4
2
Parts
Cost ($)
50 60 70 80 90 100 110
Dr. Constance Lightner- Fayetteville State University
Numerical Descriptive Statistics
From Anderson, Sweeney and Williams
Dr. Constance Lightner- Fayetteville State University
Statistical Inference is the process of using information obtained from analyzing a sample to make estimates about characteristics of the entire population.
Dr. Constance Lightner- Fayetteville State University
Example: Hudson Auto Repair
1. Population
consists of all
tune-ups. Average
cost of parts is
unknown.
2. A sample of 50
engine tune-ups
is examined.
From Anderson, Sweeney and Williams
3. The sample data
provide a sample
average cost of
$79 per tune-up.
4. The value of the
sample average is used
to make an estimate of
the population average.
Dr. Constance Lightner- Fayetteville State University
Random Sampling
A procedure for selecting a subset of the population units in such a way that every unit in the population has an equal chance of selection. Since the validity of all statistical results depend upon the original sampling process, it is essential that this process is “blind”. This implies that every element in the population is equally likely to be selected for the sample without bias.
Dr. Constance Lightner- Fayetteville State University
END OF
Chapter 1
Dr. Constance Lightner- Fayetteville State University